Stifel on CIENA (CIEN): 'First Multi-Rail Order, Margins Inflecting, Co-Development Deepenin'

Stifel analyst Ruben Roy reiterated a Buy rating and $615.00 price target on CIENA (NYSE: CIEN).

The analyst comments "Ciena's F2Q26 report extended the beat and raise pattern we expected as noted in our preview into the print: revenue of $1.57bn (+40% y/y) vs consensus $1.51bn beat the guide midpoint by ~$70mn, adj-GM of 44.9% (+90bps vs. midpoint) and adj-OM of 19.5% (+150bps vs. midpoint) all came in above the high end of the guide as well - adj-EPS was $1.64 vs $1.46 consensus. Management raised FY26 guidance midpoint to $6.3bn (+32% y/y, above our previous $6.14bn estimate), raising both the gross and operating margin ranges. Management disclosed the industry's first hyperscaler multi-rail order on RLS hyper-rail; though it carries $0 FY26 revenue, CIEN expects a meaningful 2027 uptick, deals worth "hundreds of millions over multiple years," and step function margin accretion versus single-rail RLS. Backlog of $7.7bn and a deepening moat through co-developed engagement structures underpin visibility into 2027."

For an analyst ratings summary and ratings history on CIENA click here. For more ratings news on CIENA click here.

Shares of CIENA closed at $620.37 yesterday.

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