Needham projects Ciena will generate over $100 million in sales from Verizon’s new dark fiber agreement with Google. This revenue is expected to materialize throughout 2027 and 2028. The deal represents a strategic shift for Verizon as it enters the dark fiber market.
Ciena will supply coherent modems, line systems, and amplifiers for the long-haul project. Google will negotiate the specific product specifications and pricing for the equipment.
Needham reiterated its Buy rating and a $600 price target for Ciena following the news. Ciena shares fell 5.4% in Tuesday premarket trading despite the positive long-term outlook.