Ciena Targets 30% Revenue CAGR Through Fiscal 2029, Backlog Jumps to $8.5 Billion

Ciena (CIEN) laid out long-term financial targets at its Investor Forum on Sept. 16, 2026, projecting a 30% revenue compound annual growth rate from fiscal 2026 through fiscal 2029, a 20% free cash flow margin, 50% adjusted gross margin, and adjusted operating margin of 25% to 32%. Shares were briefly halted Wednesday ahead of the announcement, then resumed up about 3%. The targets follow record fiscal third-quarter 2026 results. Revenue rose 37% year-over-year to $1.67 billion, adjusted earnings jumped 215% to $2.11 per share, and adjusted operating margin reached a record 22.5%. Order backlog climbed $800 million sequentially to $8.5 billion, and interconnect revenue more than doubled. Management raised full-year fiscal 2026 revenue guidance to $6.42 billion and issued a fiscal 2027 outlook of at least 30% growth, to $8.3 billion to $8.4 billion. CFO Marc Graff said the targets reflect confidence in Ciena's differentiated technology and expanding supply capacity. Starting fiscal 2027, Ciena will report results in four segments: Optical Systems, Interconnects, Global Services, and Routing and Other. Shares of optical peers Lumentum (LITE), Coherent (COHR), and Arista Networks (ANET) also rose. The stock holds a consensus "Moderate Buy" rating from 19 analysts, with an average price target of $507.20.