Key Financial Highlights
Ciena Corporation (NYSE: CIEN) reported a 20% year-over-year increase in revenue, reaching $1.35 billion for its fourth quarter of fiscal 2025, which ended on November 1. Non-GAAP earnings rose 68% compared to the previous year. The company anticipates a 30% increase in revenue for the current quarter, driven by stronger demand from major clients like Meta Platforms, which will deploy Ciena’s solutions in multiple new data centers.
For fiscal 2026, Ciena projects revenue growth of 24%, estimating total revenue of approximately $5.9 billion. The company ended fiscal 2025 with a significant revenue backlog of $5 billion and received orders worth $7.8 billion for the year. The AI data center market, which requires substantially more optical connections compared to traditional data centers, is projected to grow annually at 27% through 2032, further supporting Ciena’s potential for sustained growth.
Currently trading at 6.4 times sales, Ciena’s valuation is considerably lower than industry peers Nvidia and Broadcom. If market conditions lead to a valuation adjustment, Ciena’s market cap could potentially exceed $62.5 billion based on projected revenue, more than double its current value.
