CIENOptical networking systems
Ciena
Not investment advice. Kevin may own this stock. How we value stocks
By Kevin Amado
Updated
- Price
- $296.04
- Analysts view
- Bullish
- Discount category
- Below intrinsic value
- Pick status
- Top pick
- Next earnings
- Earnings Dec 10 · · estimated
- Market cap
- $42B
- Shares of Aug 28, 2026
- P/E (trailing)
- 66.2
- Price of Nov 12, 2026
- EPS (trailing)
- $4.47
- 12 months to Aug 1, 2026
- 52-week range
- $168.22 – $637.51
- To Nov 12, 2026
- Beta
- 1.34
- Vs S&P 500, 5 years monthly, to Oct 30, 2026
- Average volume
- 2.9M
- 3 months, to Nov 12, 2026
Check the numbers:ExchangeGoogle FinanceYahoo FinanceSEC filings
In short
- Thesis
- The market prices Ciena as a network supplier that depends on a few cloud customers and on scarce parts, and more supply with a higher margin through fiscal 2027 can lift its value.
- Gap
- Can close. The Q4 report in December 2026 and its fiscal 2027 plan show whether supply and margins keep growing.
Company guidance: Q4 FY26 revenue $1.75 billion +/- $50 million, adj. operating margin 20%; FY26 revenue $6.42 billion +/- $50 million (, Q3 fiscal 2026 results (8-K))
Price history
About
Ciena Corporation designs, makes and sells optical networking systems, routing and switching products, software and services that move data over fiber for telecom operators, cloud and data center companies and governments. Revenue was $1.67 billion in the fiscal third quarter of 2026, which ended August 1, 2026. Optical networking was 71.3% of it, routing and switching 9.8%, platform software and services 5.9%, Blue Planet automation software 1.4% and global services 11.6%. Two customers each made more than 10% of revenue, 41.7% together.
Ciena's fiscal year ends around October 31. Gary Smith is President and Chief Executive Officer, and Marc Graff is Chief Financial Officer. The pick is the common stock on the NYSE (CIEN), in US dollars.
Thesis
The market prices Ciena as a network supplier that depends on a few cloud customers that are building AI data center networks and on scarce parts that limit how fast it can ship. Revenue rose 37% to $1.67 billion in the fiscal third quarter of 2026, and adjusted earnings per share rose to $2.11 from $0.67. Orders have been above revenue, so backlog is historically high, and Ciena raised its fiscal 2026 revenue guidance to $6.42 billion plus or minus $50 million. Two customers made 41.7% of revenue.
For the price to hold, supply must grow fast enough to turn orders into revenue, the adjusted operating margin must reach the 20% that Ciena expects for Q4 from 10.7% a year earlier, and the cloud customers must keep ordering. The Q4 report and the fiscal 2027 plan in December 2026 are the next test. If revenue and margin keep rising, the gap can close within about two years.
Checkpoints
- Dec 10, 2026 · est.PendingQ4 fiscal 2026 results and fiscal 2027 planQ4 revenue of $1.70 billion or more and an adjusted operating margin of 19.5% or more passes; lower results fail.
- Mar 2027 · est.PendingQ1 fiscal 2027 results: revenueQuarterly revenue of $1.75 billion or more passes; less fails.
Recent events
- September 3, 2026Ciena reported fiscal Q3 2026 results. Revenue was $1.67 billion, up 37%, adjusted gross margin was 46.4% and adjusted operating margin was 22.5%. GAAP net income per diluted share was $1.83 and adjusted net income per diluted share was $2.11. Ciena bought about 0.4 million shares for $171.7 million.
- September 3, 2026Ciena gave an outlook for Q4: revenue of $1.75 billion plus or minus $50 million, an adjusted gross margin of 45% plus or minus 50 basis points and an adjusted operating margin of 20% plus or minus 50 basis points. It raised its fiscal 2026 revenue outlook to $6.42 billion plus or minus $50 million.
- June 11, 2026Ciena closed an offering of $2.88 billion of 0.00% convertible senior notes due 2031, including $375.0 million from the buyers' option, and repaid its 2030 term loan in full.
Latest news and filings
- Last earnings
- September 3, 2026 (8-K on sec.gov)
- Next earnings
- Expected about December 10, 2026. The company has not confirmed the date.
- 10-QQuarterly report for the period ended Aug 1, 2026Filed · cien-20260801
- 8-KEarnings releaseFiled · Press release and exhibits
- 8-KNew material agreement and New debt or financial obligationFiled · Read it on sec.gov
- 8-KOther company newsFiled · Read it on sec.gov
- 10-QQuarterly report for the period ended May 2, 2026Filed · cien-20260502
- 8-KEarnings releaseFiled · Press release and exhibits
- 8-KShareholder vote resultsFiled · cien-20260326
- 10-QQuarterly report for the period ended Jan 31, 2026Filed · cien-20260131
- 8-KEarnings releaseFiled · Press release and exhibits
- 10-KAnnual report for the period ended Nov 1, 2025Filed · cien-20251101
Risks
- Customer concentration. Two customers made 41.7% of revenue in the fiscal third quarter of 2026. A cut in orders from one of them would hit revenue and profit.
- Supply limits. Orders exceed revenue and the industry has a supply shortage. Ciena signs multi-year supply agreements with firm purchase commitments and prepayments, so late parts delay revenue and a drop in demand would leave it with commitments.
- Inventory. Inventories were $872.0 million at August 1, 2026, and inventory turns were 3.5. Excess or old parts would need write-downs.
- Debt. Long-term debt was $3,229.8 million at August 1, 2026, against $1,524.2 million at November 1, 2025. The 0.00% convertible notes do not pay interest, but they can dilute shareholders.
Balance sheet
At August 1, 2026, Ciena had cash and cash equivalents of $2,445.7 million, short-term investments of $184.3 million and long-term investments of $213.6 million. Long-term debt, net, was $3,229.8 million, against $1,524.2 million at November 1, 2025, with no current portion. It includes the $2.88 billion of 0.00% convertible senior notes due 2031 issued on June 11, 2026. Accounts receivable were $1,233.6 million and inventories were $872.0 million. Total stockholders' equity was $3,056.7 million. There were 141,808,525 shares outstanding at August 28, 2026. All amounts are in US dollars.
Dividends
Ciena does not pay a dividend.
Source: company filings and market data, read on November 13, 2026.
Questions about Ciena
What does Ciena do?
Ciena Corporation designs, makes and sells optical networking systems, routing and switching products, software and services that move data over fiber for telecom operators, cloud and data center companies and governments. Its market cap is $42B at the current price of $296.04.
When does Ciena report earnings next?
This is an estimate: Ciena may report on December 10, 2026. It last reported results on September 3, 2026.
Is Ciena stock below its intrinsic value?
Ciena stock is below intrinsic value. This is general information, not advice.
What changed recently at Ciena?
The latest update is from September 3, 2026. Ciena reported fiscal Q3 2026 results.
What are the main risks for Ciena?
Customer concentration. Supply limits. Inventory.
How much debt and cash does Ciena have?
At August 1, 2026, Ciena had cash and cash equivalents of $2,445.7 million, short-term investments of $184.3 million and long-term investments of $213.6 million. This is as of August 1, 2026.
Does Ciena pay a dividend?
No. Ciena does not pay a dividend.
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