CienaCIEN +0.80%72 Net Margin % is 13.89% as of Apr. 2026, which is 177% above its 10-year median of 5.01. 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. Among 2,473 Hardware companies, Ciena ranks better than 73.92% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Ciena's Net Income for the
three
months ended in Apr. 2026 was $218 Mil. Ciena's Revenue for the
three
months ended in Apr. 2026 was $1,571 Mil. Therefore, Ciena's net margin for the quarter that ended in Apr. 2026 was 13.89%.
The historical rank and industry rank for Ciena's Net Margin % or its related term are showing as below:
CIEN'
s Net Margin % Range Over the Past 10 Years
Min: -11.14 Med: 5.01 Max: 45.04
Current: 7.87
CIEN's Net Margin % is ranked better than 73.92% of 2473
companies
in the Hardware industry
Industry Median: 2.71
vs CIEN: 7.87
Ciena (NYSE:CIEN) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Ciena Net Margin % Related Terms
Ciena Net Margin % Historical Data
* Premium members only.
The historical data trend for Ciena's Net Margin % 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.
For the Communication Equipment subindustry, Ciena's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Ciena's Net Margin % distribution charts can be found below:
* The bar in red indicates where Ciena's Net Margin % falls into.
* 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 (CIEN) has a Net Margin % of 13.89% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on Ciena and its competitors. This is 177% above median its historical median of 5.01. According to the industry distribution chart, Ciena ranks #645 out of 2473 companies in the Hardware industry, placing it in the top 26.1%.
Is Ciena's Net Margin % too high?
Ciena's current Net Margin % of 13.89% is 177% above median its 10-year median of 5.01. The Hardware industry median Net Margin % is 2.71. Ciena's value of 13.89% is 412.5% above this industry median. Based on the distribution chart, Ciena ranks #645 out of 2473 companies in the Hardware industry, which is above the industry midpoint. 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 Net Margin % compare to MSI and LITE?
According to the Hardware industry distribution chart, Ciena ranks #645 out of 2473 companies for Net Margin %. This puts Ciena in the upper half of its industry. The industry median Net Margin % is 2.71. Ciena's value of 13.89% is 412.5% above this benchmark. While the company's 10-year median is 5.01 vs. the industry median of 2.71, Ciena has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Hardware company?
The median Net Margin % among Hardware companies is 2.71, based on 2,473 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ciena's current Net Margin % of 13.89% is 412.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Ciena and its competitors. For the Hardware industry, the median Net Margin % is 2.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ciena's current Net Margin % is 13.89%, which is 177% above median its own 10-year median of 5.01. 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 Net Margin % is 13.89%, which is 177% above median its 10-year median of 5.01 and 412.5% above the Hardware industry median of 2.71. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Ciena (CIEN), the current Net Margin % is 13.89% 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:
Net Margin %: 13.89% (177% above median its 10-year median of 5.01)
GF Value™: $96.34 vs. price of $463.51 (381.1% above fair value)
Industry Position: 412.5% above the Hardware median (#645 of 2473)
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 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
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