CIENA CORP (CIEN)

Price—Loading quote

AI: Overvalued

Price checkThe share price assumes years of strong growth and leaves little room for disappointment.

At the latest completed session, Ciena closed at $428.77. Using 141.6 million shares reported on May 2 gives a roughly $60.7 billion market value. Trailing twelve-month net income is about $438 million, so the price is roughly 139 times reported earnings. Trailing free cash flow—cash left after running and investing in the business—is about $832 million, implying roughly 73 times cash flow. Those multiples require exceptional growth to persist, supporting an Overvalued verdict despite improving results.

Big pictureDemand is booming now, but past results show this business can swing sharply.

Second-quarter 2026 revenue rose 39.5% to $1.57 billion, while reported operating margin improved to 15.1% from 2.9%. Trailing free cash flow reached roughly $832 million, but durability is unproven: operating cash flow was negative $168 million in 2022, and 2024 revenue fell 8.5%. Orders significantly exceeded revenue and backlog was historically high, yet two customers supplied 34% of the latest quarter’s sales. Strong demand is reported fact; a lasting step-change rather than another cycle is still an inference.

Business strengthStrong liquidity and improving cash flow help, but buybacks have not stopped dilution.

At May 2, cash and investments totaled $1.40 billion against $1.53 billion of debt; current assets of $3.57 billion comfortably covered $1.31 billion of current liabilities. June’s $2.875 billion zero-interest convertible-note sale repaid a $1.14 billion term loan and added expansion funds, improving flexibility but creating possible future dilution above set conversion prices. In the first half, Ciena spent $164 million buying 0.6 million shares, yet employee issuances helped shares rise 0.4%; $105 million of stock compensation shows buybacks partly offset employee awards.

What could change the storyOnly sustained explosive growth can justify the price; a normal slowdown would hurt.

The bull case needs artificial-intelligence network spending, historically high backlog, and better product mix to support growth well beyond management’s $6.3 billion 2026 revenue guide. The bear case is concentration and cyclicality: two customers were 34% of quarterly revenue, while past cash and sales declined sharply. As a valuation check, a conventional 25-times earnings price would require about $2.4 billion of annual profit at today’s market value—over five times trailing profit. Continued 30%-plus growth and major margin expansion are therefore embedded assumptions.

$428.77 price considered

AI: News

Growth Surges, Shares RetreatCiena delivered much stronger results and raised its forecast, but investors still marked down the shares.

On June 4, Ciena reported second-quarter revenue of $1.57 billion, up 39.5%, and adjusted earnings of $1.64 per share versus $0.42 a year earlier. It raised 2026 revenue guidance to $6.3 billion, plus or minus $100 million. The shares closed 13.7% lower that day after a 5.7% premarket decline. The timing supports an association with the report, but not sole causation; expectations had apparently risen faster than the improved outlook.

Large Zero-Interest FinancingCiena raised low-cost funding for expansion, but future share issuance remains a concern.

On June 11, Ciena closed a $2.875 billion sale of notes paying no regular interest and maturing in 2031. About $1.14 billion repaid a term loan, while remaining funds support general needs and supply-chain capacity. The initial conversion price was $746.66 per share, with hedges and warrants designed to move effective dilution toward $1,000. Shares fell 4.4% on the June 8 offering announcement and another 5.9% June 9; timing alone cannot establish that financing caused both declines.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$4.77B	$4.01B	$4.39B	$3.63B	$3.62B	$3.53B	$3.57B	$3.09B	$2.80B	$2.60B	$2.45B	$2.29B	$2.08B	$1.83B	$1.74B	$1.24B	$652.6M	$902.4M
Gross profit	$2.00B	$1.72B	$1.88B	$1.56B	$1.72B	$1.65B	$1.54B	$1.31B	$1.25B	$1.16B	$1.08B	$948.4M	$865.2M	$724.2M	$709.1M	$497.5M	$284.8M	$450.9M
Research & development	$848.3M	$767.5M	$750.6M	$624.7M	$536.7M	$529.9M	$548.1M	$491.6M	$475.3M	$451.8M	$414.2M	$401.2M	$383.4M	$364.2M	$379.9M	$327.6M	$190.3M	$175.0M
Operating expenses	$1.81B	$1.55B	$1.52B	$1.34B	$1.23B	$1.17B	$1.20B	$1.08B	$1.03B	$1.01B	$975.1M	$902.6M	$867.0M	$804.1M	$872.3M	$819.3M	$864.1M	$429.1M
Operating income	$197.5M	$166.6M	$357.5M	$222.8M	$495.4M	$487.0M	$346.8M	$229.9M	$214.7M	$156.2M	$100.4M	$45.7M	−$1.8M	−$79.8M	−$163.2M	−$321.8M	−$579.2M	$21.9M
EBITDAderived	$327.4M	$289.0M	$487.5M	$351.2M	$615.3M	$604.3M	$456.1M	$329.9M	$324.9M	$281.1M	$225.9M	$147.3M	$103.7M	$30.9M	−$33.4M	−$179.6M	−$532.5M	$72.7M
Net income	$123.3M	$84.0M	$254.8M	$152.9M	$500.2M	$361.3M	$253.4M	−$344.7M	$1.26B	$72.6M	$11.7M	−$40.6M	−$85.4M	−$144.0M	−$195.5M	−$333.5M	−$581.2M	$38.9M
Basic EPSper diluted share	$0.87	$0.58	$1.71	$1.01	$3.22	$2.34	$1.63	-$2.40	$8.89	$0.52	$0.10	-$0.38	-$0.83	-$1.45	-$2.04	-$3.58	-$6.37	$0.44
Diluted EPSper diluted share	$0.85	$0.58	$1.71	$1.00	$3.19	$2.32	$1.61	-$2.49	$7.53	$0.51	$0.10	-$0.38	-$0.83	-$1.45	-$2.04	-$3.58	-$6.37	$0.42

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)141$99.68M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 26, 2026Form 4 · 10b5-1	Cumello JosephSVP, General Mgr. Blue Planet	SellCommon Stock	1.6K	$466.33	$739.6K	42.9K
Jun 24, 2026Form 4 · 10b5-1	Graff Marc D.SVP & Chief Financial Officer	SellCommon Stock	126	$449.36	$56.6K	127.1K
Jun 15, 2026Form 4 · 10b5-1	Gage BrodieSVP Global Products & Supply	SellCommon Stock	1.2K	$466.10	$559.3K	42.7K
Jun 15, 2026Form 4 · 10b5-1	Rothenstein David MSVP and Chief Strategy Officer	SellCommon Stock	2.5K	$457.07	$1.14M	187.6K
Jun 15, 2026Form 4 · 10b5-1	SMITH GARY BPresident, CEO	SellCommon Stock	3.0K	$457.02	$1.35M	266.6K

Review ownership filings at SEC.gov ↗

CIENA CORP (CIEN)

Financial charts

Financial statements

Insider buys & sells