Ciena targets 30% revenue CAGR from 2026 to 2029 as AI demand supercharges optical networking

Ciena Corporation just posted fiscal Q3 2026 numbers that make most tech companies’ growth stories look quaint. Revenue hit $1.67 billion for the quarter, up 37% year-over-year, while adjusted earnings per share landed at $2.11, a 215% jump from the same period last year. The company is now targeting roughly 30% compound annual revenue growth from 2026 through 2029, with a goal of reaching 20% free cash flow margins by the end of that window. The numbers behind the ambition Ciena raised its full-year fiscal 2026 revenue guidance to $6.42 billion, plus or minus $50 million. That reflects projected growth of approximately 35% for the full fiscal year. For fiscal 2027, management is projecting revenue of $8.3 billion to $8.4 billion, representing at least 30% growth. The company is also targeting adjusted operating margins of 25% to 27% for that period. Ciena’s backlog currently sits at $8.5 billion, with expectations to cross $10 billion by the end of fiscal 2026. Hyperscaler customers now account for roughly half of Ciena’s total revenue, with each contributing about 10% individually. Why optical networking is having its moment The total addressable market for optical networking is ...