A Business at a Glance
0 of 1 daily views used (1 remaining). Sign up free for +5 more daily views (6 total), or try AAPL for a full preview.
CIENA CORP
CIEN
$56.7B
Mkt Cap
$390.96
-4.07%
CIENA CORP (CIEN) has a current P/E ratio of 460.0, compared to its historical median P/E of 23.7. The stock is currently considered Expensive based on its historical valuation range.
CIENA CORP (CIEN) has a 5-year average return on invested capital (ROIC) of 9.8%. This is below average and may indicate limited pricing power.
CIENA CORP (CIEN) has a market capitalization of $55.4B. It is classified as a large-cap stock.
CIENA CORP (CIEN) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.60%.
Based on historical P/E analysis, CIENA CORP (CIEN) appears expensive. The current P/E of 460.0 is 1843% above its historical median of 23.7. The estimated fair value CAGR (P/E method) is -8.9%.
CIENA CORP (CIEN) operates in the Telephone & Telegraph Apparatus industry, within the Industrials sector.
CIENA CORP (CIEN) reported annual revenue of $4.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Ciena is a network technology company providing hardware, software, and services to cloud providers, service providers, and other network operators globally. The company's Networking Platforms segment comprises optical networking systems powered by proprietary WaveLogic coherent modem technology and photonic line systems, along with routing and switching portfolios that enable capacity scaling, traffic allocation, and dynamic adaptation across long-haul, submarine, metro, regional, and data center interconnect applications. Complementing these platforms, Ciena offers Platform Software including Navigator NCS and Adaptive IP capabilities for multi-layer domain control, Blue Planet Automation Software for service lifecycle management and operations, and a broad range of services supporting network planning, design, deployment, and optimization. The company's business model is driven by strong demand for increased bandwidth fueled by AI workloads, cloud-based services, network densification, mobile traffic, and video streaming, with customers increasingly adopting disaggregated consumption models that separate hardware from software and require vendors to offer diverse technology portfolios. Ciena's competitive moat rests on its industry-leading coherent optical technology, vertical integration in key components, and ability to address multiple network layers from core to edge, positioning it to capture value across the expanding addressable market as network operators invest in capacity, automation, and AI-enabled infrastructure.
【AI-driven demand acceleration】 Management expects robust and durable demand to continue into 2027 and beyond, driven by unprecedented AI workloads requiring high-speed, low-latency connectivity across data centers and wide-area networks. The company anticipates strong backlog conversion and visibility extending well beyond historical norms, with service providers reinvesting in network infrastructure after several years and multiple hyperscalers and neoscalers showing accelerating interest in Ciena's solutions. Management expects to achieve operating leverage and margin expansion as the company scales revenue significantly faster than operating expenses, with gross margin improvements expected to continue through 2026 and into 2027 as pricing actions and cost reductions take hold. The company is prioritizing investments in supply security and capacity to serve the large and growing backlog, while advancing new product categories including scale-across solutions for distributed AI training and data center out-of-band management applications that are expected to drive incremental value creation.
| Metric | Target | Period |
|---|---|---|
| Gross Margin | 44.5% to 45% | FY2026 |
Gross Margin (FY2026): “We expect our fiscal 2026 gross margin to be between 44.5% and 45%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.6B | 4.8B | 4.0B | 4.4B | 3.6B | 3.6B |
| Net Income | 438M | 123M | 84M | 255M | 153M | 500M |
| EPS | $3.10 | $0.85 | $0.58 | $1.71 | $1.00 | $3.19 |
| Free Cash Flow | 833M | 665M | 378M | 62M | -259M | 462M |
| ROIC | 14.5% | 4.9% | 3.6% | 9.3% | 7.6% | 23.6% |
| Gross Margin | 43.0% | 42.0% | 42.8% | 42.8% | 43.0% | 47.6% |
| Debt/Equity | 0.53 | 0.56 | 0.55 | 0.55 | 0.39 | 0.22 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 511M | 198M | 167M | 358M | 223M | 495M |
| Operating Margin | 9.2% | 4.1% | 4.1% | 8.2% | 6.1% | 13.7% |
| ROE | 15.2% | 4.4% | 3.0% | 9.2% | 5.3% | 18.1% |
| Shares Outstanding | 142M | 145M | 145M | 149M | 153M | 157M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.3B | 2.4B | 2.6B | 2.8B | 3.1B | 3.6B | 3.5B | 3.6B | 3.6B | 4.4B | 4.0B | 4.8B | 5.6B |
| Gross Margin | 41.4% | 44.0% | 44.7% | 44.5% | 42.5% | 43.2% | 46.8% | 47.6% | 43.0% | 42.8% | 42.8% | 42.0% | 43.0% |
| R&D | 401M | 414M | 452M | 475M | 492M | 548M | 530M | 537M | 625M | 751M | 767M | 848M | 900M |
| SG&A | 127M | 123M | 133M | 143M | 160M | 174M | 170M | 182M | 179M | 215M | 221M | 239M | 248M |
| EBIT | 46M | 100M | 156M | 215M | 230M | 347M | 487M | 495M | 223M | 358M | 167M | 198M | 511M |
| Op. Margin | 2.0% | 4.1% | 6.0% | 7.7% | 7.4% | 9.7% | 13.8% | 13.7% | 6.1% | 8.2% | 4.1% | 4.1% | 9.2% |
| Net Income | -41M | 12M | 73M | 1.3B | -345M | 253M | 361M | 500M | 153M | 255M | 84M | 123M | 438M |
| Net Margin | -1.8% | 0.5% | 2.8% | 45.0% | -11.1% | 7.1% | 10.2% | 13.8% | 4.2% | 5.8% | 2.1% | 2.6% | 7.9% |
| Non-Recurring | 33M | 35M | 4.9M | 11M | 37M | 49M | 23M | 30M | 64M | 48M | 102M | 224M | 111M |
| Returns on Capital | |||||||||||||
| ROIC | 6.3% | 7.6% | 11.4% | 56.0% | 7.2% | 15.1% | 19.8% | 23.6% | 7.6% | 9.3% | 3.6% | 4.9% | 14.5% |
| ROE | 53.4% | 4.2% | 10.5% | 87.0% | -17.0% | 12.4% | 15.4% | 18.1% | 5.3% | 9.2% | 3.0% | 4.4% | 15.2% |
| ROA | -2.1% | 0.5% | 2.6% | 37.0% | -8.9% | 6.6% | 8.9% | 11.1% | 3.1% | 4.8% | 1.5% | 2.1% | 7.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 90M | 262M | 290M | 235M | 229M | 413M | 494M | 542M | -168M | 168M | 515M | 806M | 1.0B |
| Free Cash Flow | 42M | 200M | 182M | 140M | 162M | 351M | 411M | 462M | -259M | 62M | 378M | 665M | 833M |
| Owner Earnings | -55M | 81M | 113M | 76M | 76M | 244M | 309M | 337M | -401M | -92M | 236M | 492M | 72M |
| CapEx | 48M | 62M | 107M | 95M | 68M | 63M | 83M | 80M | 91M | 106M | 137M | 141M | 200M |
| Maint. CapEx | 102M | 125M | 125M | 110M | 100M | 109M | 117M | 120M | 128M | 130M | 122M | 130M | 760M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14M | 11M | 0 |
| D&A | 102M | 125M | 125M | 110M | 100M | 109M | 117M | 120M | 128M | 130M | 122M | 130M | 760M |
| CapEx/OCF | 53.7% | 23.7% | 37.0% | 40.3% | 29.5% | 15.1% | 16.7% | 14.7% | N/A | 63.1% | 26.6% | 17.5% | 19.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 111M | 150M | 75M | 91M | 501M | 242M | 255M | 335M | 331M |
| Buyback Yield | N/A | N/A | N/A | N/A | 2.4% | 2.5% | 1.1% | 1.0% | 7.7% | 3.6% | 2.5% | 1.1% | 0.6% |
| Stock-Based Comp | 43M | 55M | 52M | 48M | 53M | 60M | 68M | 84M | 105M | 130M | 156M | 185M | 201M |
| Debt Repayment | 4.2M | 30M | 266M | 234M | 293M | 7.0M | 5.2M | 6.9M | 5.2M | 9.4M | 12M | 12M | 12M |
| Balance Sheet | |||||||||||||
| Net Debt | 738M | 348M | 201M | 16M | -201M | -327M | -556M | -927M | -80M | 440M | 294M | 228M | 328M |
| Cash & Equiv. | 587M | 791M | 778M | 641M | 745M | 904M | 1.1B | 1.4B | 994M | 1.0B | 935M | 1.1B | 1.2B |
| Long-Term Debt | 1.3B | 1.3B | 1.0B | 584M | 686M | 680M | 676M | 670M | 1.1B | 1.5B | 1.5B | 1.5B | 1.5B |
| Debt/Equity | -21.04 | 2.05 | 1.64 | 0.44 | 0.36 | 0.32 | 0.27 | 0.22 | 0.39 | 0.55 | 0.55 | 0.56 | 0.53 |
| Interest Coverage | 1.0 | 2.0 | 2.8 | 3.8 | 4.2 | 9.3 | 15.5 | 16.1 | 4.7 | 4.1 | 1.7 | 2.2 | 557.6 |
| Equity | -70M | 621M | 766M | 2.1B | 1.9B | 2.2B | 2.5B | 3.0B | 2.7B | 2.8B | 2.8B | 2.7B | 2.9B |
| Total Assets | 2.1B | 2.7B | 2.9B | 4.0B | 3.8B | 3.9B | 4.2B | 4.9B | 5.1B | 5.6B | 5.6B | 5.9B | 6.0B |
| Total Liabilities | 2.1B | 2.1B | 2.1B | 1.8B | 1.8B | 1.7B | 1.7B | 1.8B | 2.4B | 2.8B | 2.8B | 3.1B | 3.1B |
| Intangibles | 129M | 203M | 147M | 101M | 148M | 113M | 97M | 65M | 70M | 206M | 165M | 224M | 202M |
| Retained Earnings | -6.0B | -6.0B | -5.9B | -4.7B | -4.9B | -4.6B | -4.3B | -3.8B | -3.6B | -3.4B | -3.3B | -3.2B | -2.8B |
| Working Capital | 912M | 1.2B | 1.1B | 969M | 1.2B | 1.5B | 1.9B | 2.3B | 2.3B | 2.6B | 2.5B | 2.3B | 2.3B |
| Current Assets | 1.7B | 1.9B | 2.0B | 2.0B | 2.1B | 2.4B | 2.6B | 3.2B | 3.4B | 3.6B | 3.5B | 3.6B | 3.6B |
| Current Liabilities | 781M | 667M | 892M | 1.0B | 963M | 846M | 761M | 909M | 1.0B | 932M | 1000M | 1.3B | 1.3B |
| Per Share Data | |||||||||||||
| EPS | -0.38 | 0.10 | 0.51 | 7.53 | -2.49 | 1.61 | 2.32 | 3.19 | 1.00 | 1.71 | 0.58 | 0.85 | 3.10 |
| Owner EPS | -0.51 | 0.70 | 0.79 | 0.46 | 0.55 | 1.55 | 1.98 | 2.15 | -2.62 | -0.62 | 1.63 | 3.39 | 0.51 |
| Book Value | -0.65 | 5.32 | 5.38 | 12.75 | 13.94 | 13.80 | 16.12 | 19.26 | 17.74 | 19.11 | 19.45 | 18.81 | 20.43 |
| Cash Flow/Share | 0.84 | 2.25 | 2.03 | 1.40 | 1.66 | 2.62 | 3.17 | 3.45 | -1.10 | 1.13 | 3.55 | 5.56 | 8.46 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 106.9M | 116.7M | 142.3M | 167.6M | 138.4M | 157.4M | 155.7M | 156.8M | 152.9M | 149.0M | 144.8M | 145.1M | 141.6M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | 253.0 | 42.0 | 2.9 | N/A | 23.7 | 19.2 | 19.0 | 42.6 | 26.4 | 119.3 | 240.2 | 126.2 |
| P/FCF | 42.5 | 14.8 | 16.7 | 25.8 | 28.0 | 17.1 | 16.9 | 20.6 | N/A | 108.5 | 26.5 | 44.5 | 66.5 |
| EV/EBIT | 59.0 | 32.9 | 22.3 | 18.6 | 18.9 | 16.4 | 13.1 | 17.4 | 28.9 | 20.1 | 61.9 | 151.2 | 108.9 |
| Price/Book | N/A | 4.8 | 4.0 | 1.7 | 2.3 | 2.8 | 2.8 | 3.2 | 2.4 | 2.4 | 3.6 | 10.9 | 19.1 |
| Price/Sales | 5.2 | 5.8 | 5.8 | 1.4 | 1.2 | 1.7 | 2.0 | 2.4 | 2.3 | 1.6 | 1.9 | 3.0 | 9.9 |
| FCF Yield | 2.4% | 6.8% | 6.0% | 3.9% | 3.6% | 5.8% | 5.9% | 4.9% | -4.0% | 0.9% | 3.8% | 2.2% | 1.5% |
| Market Cap | 1.8B | 3.0B | 3.0B | 3.6B | 4.5B | 6.0B | 6.9B | 9.5B | 6.5B | 6.7B | 10.0B | 29.6B | 55.4B |
| Avg. Price | 20.44 | 21.94 | 19.68 | 23.56 | 26.20 | 38.74 | 46.13 | 54.58 | 54.68 | 46.19 | 53.10 | 100.22 | 390.96 |
| Year-End Price | 16.53 | 25.30 | 21.43 | 21.61 | 32.73 | 38.12 | 44.47 | 60.74 | 42.62 | 45.22 | 69.17 | 204.21 | 390.96 |
CIENA CORP passes 2 of 9 quality checks, indicating weak fundamentals.
CIENA CORP trades at 460.0x trailing earnings, compared to its 15-year median P/E of 23.7x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 82.8x vs a median of 23.2x. The company's 5-year average ROIC is 9.8% with a gross margin of 43.6%. Total shareholder yield (buybacks) is 0.6%. At current prices, the estimated annualized return to fair value is +5.2%.
CIENA CORP (CIEN) has a net profit margin of 2.6%. This is a modest margin.
CIENA CORP (CIEN) generated $665 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CIENA CORP (CIEN) has a debt-to-equity ratio of 0.56. This indicates moderate leverage.
CIENA CORP (CIEN) reported earnings per share (EPS) of $0.85 in its most recent fiscal year.
CIENA CORP (CIEN) has a return on equity (ROE) of 4.4%. This indicates moderate shareholder returns.
CIENA CORP (CIEN) has a 5-year average gross margin of 43.6%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for CIENA CORP (CIEN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CIENA CORP (CIEN) has a book value per share of $18.81, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects robust and durable demand to continue into 2027 and beyond, driven by unprecedented AI workloads requiring high-speed, low-latency connectivity across data centers and wide-area networks. The company anticipates strong backlog conversion and visibility extending well beyond historical norms, with service providers reinvesting in network infrastructure after several years and multiple hyperscalers and neoscalers showing accelerating interest in Ciena's solutions. Management expects to achieve operating leverage and margin expansion as the company scales revenue significantly faster than operating expenses, with gross margin improvements expected to continue through 2026 and into 2027 as pricing actions and cost reductions take hold. The company is prioritizing investments in supply security and capacity to serve the large and growing backlog, while advancing new product categories including scale-across solutions for distributed AI training and data center out-of-band management applications that are expected to drive incremental value creation.
Based on recent SEC filings and earnings calls, CIENA CORP (CIEN) has provided the following forward guidance: Gross Margin: 44.5% to 45% (FY2026).
No recent press releases.