Ciena targets 30% annual revenue growth through 2029

Ciena Corporation has announced ambitious financial targets through fiscal year 2029, driven by rising demand for optical networking technology fueled by artificial intelligence. The company is targeting a compound annual revenue growth rate of approximately 30 percent from 2026 to 2029.

Key profitability goals include an adjusted gross margin of about 50 percent, operating margins between 25 and 35 percent, and a free cash flow margin of roughly 20 percent. To support these objectives, Ciena plans to reorganize its financial reporting into four new segments starting in 2027.

Recent fiscal third-quarter results showed revenue of $1.67 billion, a 37 percent increase year-over-year. The company has raised its full-year fiscal 2026 revenue guidance to approximately $6.42 billion. Ciena’s backlog is currently $8.5 billion, with expectations to exceed $10 billion by the end of fiscal 2026. Hyperscaler customers currently represent about half of the company’s total revenue.