Ciena targets $14 billion in revenue by 2029

Ciena has outlined strategic financial objectives through fiscal 2029, targeting approximately $14 billion in annual revenue. The company aims to achieve gross margins of about 50% and operating margins between 32% and 35%.

This growth strategy is driven by high demand for optical systems and interconnect products, fueled largely by the global expansion of data centers and AI infrastructure. Chief Financial Officer Marc Graff noted that demand for these technologies is currently outpacing industry supply, a trend he expects to continue until at least 2028.

Ciena reports a significant backlog, with expectations that orders will reach $10 billion by the end of fiscal 2026. While the company faces challenges from supply chain constraints and long lead times, it has implemented cost reductions and pricing actions to improve margins. The company also expects to maintain strong cash flow, targeting a free cash flow margin of approximately 20% by 2029.