Ciena Reports Record Backlog of $8.5 Billion Amid Strong Demand for AI Infrastructure
On September 3, Ciena Corporation (NYSE:CIEN) reported strong third-quarter fiscal 2026 results with revenue rising 37% year-over-year to $1.67 billion and adjusted earnings per share more than tripling to $2.11. The company's order backlog surged to $8.5 billion, driven by robust demand from hyperscale customers building AI infrastructure. Ciena’s optical networking segment saw a 46% revenue increase to $1.19 billion, while cloud provider and interconnects revenues also grew significantly. Management expects the backlog to exceed $10 billion before fiscal year-end due to continued strong bookings in Q4. Despite rising demand, Ciena is facing challenges including higher inventory levels, cash conversion issues, customer concentration risks, and potential tariff impacts. The company's profitability metrics hit record highs with adjusted gross margin at 46.4% and operating margin reaching 22.5%. Management anticipates further improvement to an operating margin of up to 27% in fiscal 2027 on revenue exceeding $8.3 billion.
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