CIEN Targets 30% Revenue Growth Through 2029 — Peers COHR, GLW And AAOI Rally After Guidance

• Ciena expects adjusted gross margin to reach around 50% by fiscal 2029.
• CFO Marc Graff pointed to customer demand, expanding supply capacity, and new addressable markets as drivers of the targets.
• Ciena will move to four new financial reporting segments starting with fiscal 2027.

Ciena Corp. (CIEN), a provider of high-speed connectivity solutions, announced its three-year financial targets for fiscal 2029 at its Investor Forum on Wednesday in Ottawa, Ontario, Canada. The company is targeting around 30% revenue growth from fiscal 2026 through 2029, along with higher margins and free cash flow. 

Shares of Ciena’s peers Coherent Corp. (COHR), Corning Inc. (GLW) and Applied Optoelectronics Inc. (AAOI) gained following the announcement. While COHR shares jumped over 8%, GLW stock gained 2.5%, and AAOI shares rose more than 4% during Wednesday afternoon trading.

CIEN shares, meanwhile, remained halted for trading before falling 0.3% when trading resumed.

CIEN Sets 2029 Financial Targets

Ciena’s targets for fiscal 2029 include a revenue compound annual growth rate of AROUND 30% from 2026 through 2029. The company is also targeting an adjusted gross margin of about 50%, an adjusted operating margin between 32% and 35%, and free cash flow margins of 20%.

“The three-year financial targets announced today reflect both the opportunities we see ahead and our confidence in our ability to execute,” said Marc Graff, Ciena’s chief financial officer, in a statement.

Graff said the targets are backed by Ciena’s differentiated portfolio, growing customer demand, expanding supply capacity and new addressable market opportunities. He added that the company is positioned to deliver sustained revenue growth, significant profitability expansion and attractive returns for its owners over the coming years.

Ciena To Change Reporting Segments

Ciena also announced a change to its financial reporting segments beginning with fiscal 2027, which will be reflected in its first-quarter fiscal 2027 results.

The company’s new reporting segments will be Optical Systems, Interconnects, Global Services, and Routing and Other. Graff said the new structure will align with Ciena’s growth markets and give owners better insight into the company’s financial performance.

During the two-day investor forum on Wednesday and Thursday, Ciena executives will discuss the company’s strategic priorities and portfolio roadmap supporting its financial objectives.

CIEN, COHR, GLW, AAOI Stocks: Retail Sentiment

On Stocktwits, while retail sentiment for CIEN was ‘neutral,’ it was ‘bearish’ for COHR. Message volume for both stocks was ‘normal’ at the time of writing on Wednesday. Similarly, retail sentiment for GLW was ‘bullish,’ while message volume was ‘high,’ and AAOI had ‘extremely bearish’ retail sentiment amid ‘low’ message volume.

CIEN stock has climbed nearly 42% year-to-date, while COHR shares have advanced around 54%. GLW shares are up around 63%, and AAOI stock has surged 166% over the same period.

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