Ciena reveals 30% revenue CAGR target through 2029; optical names climb

Ciena (CIEN) stock rose after the company outlined targets for fiscal 2026-2029, including 30% revenue growth, 50% gross margin, and 20% free cash flow margin by 2029. Analysts raised price targets, with Barclays setting a $548 target. Demand from AI data centers supports Ciena's optical networking business, though supply constraints remain a risk. Nokia (NOK) was also mentioned as a potential beneficiary.

Ciena (CIEN) stock rose after the company projected a 30% compound annual revenue growth rate from 2026 to 2029, with an adjusted gross margin of 50%. Management also noted ongoing supply constraints at an investor briefing.

TD Cowen maintained a Buy rating and $400 price target for Ciena (CIEN), citing strong growth prospects. The company projects 30%+ CAGR through 2029, with revenue up 33% YoY. Analysts revised earnings upwards, though some note overvaluation. CIEN's Q3 revenue was $1.67B, up 37% YoY, with EPS of $2.11. Price targets vary among analysts.

Ciena Corporation (CIEN) announced three-year financial targets at its Investor Forum, aiming for 30% revenue CAGR, 50% adjusted gross margin, and 20% free cash flow margin by 2029. The company reported strong Q3 fiscal 2026 results with $1.67B revenue, 46.4% gross margin, and $116M free cash flow. CIEN also expects fiscal 2026 backlog to exceed $10B and will change its financial reporting structure in fiscal 2027.

Northland increased its price target for Ciena to $550 from $500, maintaining an Outperform rating. The move follows Ciena's updated financial targets, including 30% revenue growth through FY29, gross margin expansion, and significant operating leverage, according to the analyst.

Ciena projects 30% annual revenue growth from 2027 to 2029, driven by demand and new market opportunities. The company plans to restructure its financial reporting into five segments starting in 2027.