Ciena Aims for $14 Billion Revenue by 2029 Amid Strong Demand in Optical Networking
Ciena Corporation (NYSE:CIEN) has set a revenue target of approximately $14 billion by fiscal 2029, driven by robust demand for optical systems and interconnect products. The company expects to grow at an annual rate of around 30%, supported by gross margins near 50% and operating margins between 32%–35%. Orders have doubled from 2024 to 2025 and are projected to rise another 50% in 2026, with a backlog potentially reaching $10 billion by the end of fiscal 2026. Ciena anticipates supply constraints will persist until at least 2028. To support its growth strategy, Ciena plans to invest between $2.5 billion and $3 billion in R&D over three years while prioritizing organic development, acquisitions, and shareholder returns. The company has committed to returning at least 70% of free cash flow unless major M&A activity occurs. CFO Marc Graff highlighted improvements in gross margins by more than 200 basis points year-over-year through cost reductions and product mix optimization.
Tickers: $CIEN
Topics: AI infrastructure capital allocation optical networking R&D investment