Shares of Ribbon Communications Inc. (RBBN) surged 5.54% on Wednesday after the company reported strong third-quarter results, driven by impressive growth in its Cloud and Edge business segment.

The company's Cloud and Edge revenue climbed 11% year-over-year and 16% quarter-over-quarter to $128 million, fueled by increasing demand for network modernization and unified communications solutions. Notably, the Cloud and Edge non-GAAP gross margin reached near an all-time high of 68%, reflecting the segment's robust profitability.

Ribbon's overall revenue grew 3.5% year-over-year to $210 million, while non-GAAP gross margin came in at 55%, exceeding expectations and reaching the high end of the company's guidance. The strong performance in the Cloud and Edge business offset weakness in the IP Optical segment, where revenue declined 6% due to the suspension of product sales to Eastern Europe.