Ciena (CIEN) EBIT: $569 Mil (TTM As of Apr. 2026)


CIEN Ciena Corp CIEN
72 GF Score
Price $463.51
GF Value $96.34
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Ciena EBIT?

Ciena CIEN +0.80% 72 EBIT is $569 Mil as of Apr. 2026. GuruFocus rates CIEN with a GF Score™ of 72/100 and a GF Value™ of $96.34 (Significantly Overvalued). The stock has 4 warning signs investors should review.

Ciena's earnings before interest and taxes (EBIT) for the three months ended in Apr. 2026 was $253 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2026 was $569 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ciena's annualized ROC % for the quarter that ended in Apr. 2026 was 22.75%. Ciena's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 66.17%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Ciena's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 0.86%.


Ciena  (NYSE:CIEN) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Ciena's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2026 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=954.704 * ( 1 - 5.56% )/( (3874.825 + 4050.797)/ 2 )
=901.6224576/3962.811
=22.75 %

where

Invested Capital(Q: Jan. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5892.359 - 717.806 - ( 1299.728 - max(0, 1258.373 - 3540.877+1299.728))
=3874.825

Invested Capital(Q: Apr. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6039.449 - 785.818 - ( 1202.834 - max(0, 1308.581 - 3568.164+1202.834))
=4050.797

Note: The Operating Income data used here is four times the quarterly (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Ciena's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2026  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1012.54/( ( (478.322 + max(1012.597, 0)) + (483.541 + max(1085.794, 0)) )/ 2 )
=1012.54/( ( 1490.919 + 1569.335 )/ 2 )
=1012.54/1530.127
=66.17 %

where Working Capital is:

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(967.408 + 845.823 + 427.918) - (717.806 + 290.418 + 220.328)
=1012.597

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1052.569 + 808.447 + 504.314) - (785.818 + 238.38 + 255.338)
=1085.794

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Ciena's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Apr. 2026 )
=568.974/65988.940
=0.86 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Ciena EBIT Related Terms


Ciena EBIT Historical Data

* Premium members only.

The historical data trend for Ciena's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ciena EBIT Chart

Ciena Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 494.12 235.47 416.73 218.46 248.05

Ciena Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 42.57 88.66 24.81 202.37 253.14

CIEN vs MSI, LITE, HPE: EBIT Comparison

For the Communication Equipment subindustry, Ciena's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ciena EV-to-EBIT vs Hardware Industry

For the Hardware industry and Technology sector, Ciena's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Ciena's EV-to-EBIT falls into.


CIEN
72GF Score
Ciena Corp CIEN
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Ciena EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $569 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $569 Mil mean?
Ciena (CIEN) has a EBIT of $569 Mil as of Apr. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Ciena.
Is Ciena's EBIT too high?
Ciena's current EBIT is $569 Mil. Overall, Ciena has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ciena's EBIT compare to MSI and LITE?
Ciena's EBIT of $569 Mil can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Hardware company?
A good EBIT depends on the Hardware industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Ciena. Ciena's current EBIT is $569 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ciena stock overvalued right now?
Based on GuruFocus' analysis, Ciena (CIEN) is currently considered Significantly Overvalued. The stock's GF Value™ is $96.34, compared to a current price of $463.51 — trading 381.1% above its estimated fair value. The current EBIT is $569 Mil. Ciena's overall GF Score™ is 72/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Ciena (CIEN), the current EBIT is $569 Mil as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ciena (CIEN) Overvalued in 2026?

Based on GuruFocus' analysis, Ciena stock appears to be overvalued. The current stock price of $463.51 is trading 381.1% above its estimated GF Value™ of $96.34. GuruFocus considers Ciena to be Significantly Overvalued.

Key valuation signals for CIEN:

  • EBIT: $569 Mil
  • GF Value™: $96.34 vs. price of $463.51 (381.1% above fair value)
  • GF Score™: 72/100 with 4 warning signs

No single metric tells the full story. See the CIEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ciena Business Description

Address 7035 Ridge Road, Hanover, MD, USA, 21076
Ciena is a leader in high-speed optical connectivity, providing systems, components, and automation software for telecom providers and enterprises, such as data centers, to enable long-distance connectivity. The company operates through four primary business segments: networking platforms, platform software and services, Blue Planet automation software, and global services. While telecom carriers remain important customers, cloud providers and hyperscalers now drive a significant portion of the business. To meet the demands of AI data centers, customers are adopting Ciena's WaveLogic 6 platform, the first to support 1.6 terabits-per-second capacity.
72GF Score

Get the complete analysis for CIEN

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$463.51
Price
$96.34
GF Value