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Can the Colt Tie-Up Fuel Ciena's Quantum-Secure Expansion?
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Key Takeaways
Ciena and Colt completed a quantum-safe 800GbE live data transmission between New York and London.
Ciena's WaveLogic 6 Extreme secured data across 6,900 km using terrestrial and subsea networks.
Ciena added 20 WL6e customers in Q2, bringing its total customer base for the platform to 110.
As cyber threats evolve and quantum computing inches closer to commercial reality, telecommunications providers and enterprises are increasingly focused on securing their networks against future quantum-enabled attacks. In a breakthrough for secure global connectivity, Colt Technology Services and Ciena Corporation (CIEN - Free Report) have completed one of the fastest quantum-safe data transmission trials ever demonstrated and the fastest across a transatlantic route.
The trial successfully transmitted live data across approximately 6,900 kms between New York and London using Colt's extensive terrestrial and subsea network infrastructure. The transmission was secured using Ciena's WaveLogic 6 Extreme (WL6e) encryption technology and delivered an impressive 800 Gigabit Ethernet (800GbE) service rate. This accomplishment is noteworthy because 800GbE services remain in the early stages of adoption. Most long-haul and subsea network deployments today operate at 100GbE or 400GbE speeds.
Demonstrating secure 800GbE connectivity across one of the world's busiest intercontinental routes represents a major advancement in both networking performance and cybersecurity. At this speed, organizations can move massive volumes of data including AI workloads, cloud datasets and data-center-scale information across the Atlantic in seconds while maintaining robust protection against emerging threats.
Image Source: Zacks Investment Research
The successful demonstration relied on Ciena's WLe6 platform, which incorporates advanced post-quantum cryptography capabilities. WL6e deployments continue to ramp on AI-driven network buildouts, with 20 new customers added during the fiscal second quarter, bringing the total customer base to 110. In May, Matrix Networks and NAP Info deployed Ciena’s GeoMesh Extreme with WL6e technology on the Batam–Jakarta segment of the Matrix Cable System, enabling 1 Tb/s transmission over 1,055 kilometers and making them among the first Southeast Asian operators to commercially deploy this next-generation optical technology.
The rise of quantum-safe networking is expected to drive demand from telecom operators, cloud providers, governments, defense agencies, financial institutions and healthcare organizations. By commercializing the capabilities demonstrated in the Colt trial, Ciena could unlock new revenue opportunities in security-focused network upgrades.
Can CIEN Stay Ahead of Market Rivals?
Cisco Systems’ (CSCO - Free Report) partner base supports expansion in AI infrastructure and security. It is working with NVIDIA on Cisco Secure AI Factory with NVIDIA, founded on the NVIDIA Spectrum-X Ethernet networking platform, and is including Cisco AI Defense and Cisco Hypershield in validated designs for enterprise AI factories. Cisco also offers NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs with Cisco UCS C845A M8 servers, broadening its compute attach opportunities. Beyond NVIDIA, Cisco has been selected as a technology partner to HUMAIN, a new AI company in Saudi Arabia, alongside partners such as BlackRock Global Infrastructure Partners, MGX, Microsoft, NVIDIA and xAI.
Arista Networks (ANET - Free Report) continues to benefit from its software-driven, data-centric approach that helps customers build scalable cloud infrastructure. The company stated during the first-quarter 2026 earnings call that it now commands the leading market share position in high-speed switching above 10-gigabit Ethernet. Arista is seeing continued demand for 200-gig, 400-gig and 800-gig switching products as enterprises and hyperscale customers upgrade AI and cloud infrastructure. Management highlighted more than 100 cumulative customers in 800-gigabit Ethernet deployments and expects 1.6-terabit production deployments beginning in 2027. It offers a broad portfolio of data center and campus Ethernet switches and routers spanning 1/2.5/5/10/25/40/50/100/400 and emerging 800-gig platforms.
CIEN Price Performance, Valuation and Estimates
Shares of CIEN have gained a whopping 504.6% in the past year compared with the Communications - Components industry’s surge of 328.8%.
Image Source: Zacks Investment Research
Valuation-wise, CIEN seems attractive, as suggested by the Value Score of B. CIEN trades at a forward 12-month price-to-earnings (P/E) ratio of 60.98, above the industry’s 49.15.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CIEN’s earnings for fiscal 2026 has been revised upward over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can the Colt Tie-Up Fuel Ciena's Quantum-Secure Expansion?
Key Takeaways
As cyber threats evolve and quantum computing inches closer to commercial reality, telecommunications providers and enterprises are increasingly focused on securing their networks against future quantum-enabled attacks. In a breakthrough for secure global connectivity, Colt Technology Services and Ciena Corporation (CIEN - Free Report) have completed one of the fastest quantum-safe data transmission trials ever demonstrated and the fastest across a transatlantic route.
The trial successfully transmitted live data across approximately 6,900 kms between New York and London using Colt's extensive terrestrial and subsea network infrastructure. The transmission was secured using Ciena's WaveLogic 6 Extreme (WL6e) encryption technology and delivered an impressive 800 Gigabit Ethernet (800GbE) service rate. This accomplishment is noteworthy because 800GbE services remain in the early stages of adoption. Most long-haul and subsea network deployments today operate at 100GbE or 400GbE speeds.
Demonstrating secure 800GbE connectivity across one of the world's busiest intercontinental routes represents a major advancement in both networking performance and cybersecurity. At this speed, organizations can move massive volumes of data including AI workloads, cloud datasets and data-center-scale information across the Atlantic in seconds while maintaining robust protection against emerging threats.
Image Source: Zacks Investment Research
The successful demonstration relied on Ciena's WLe6 platform, which incorporates advanced post-quantum cryptography capabilities. WL6e deployments continue to ramp on AI-driven network buildouts, with 20 new customers added during the fiscal second quarter, bringing the total customer base to 110. In May, Matrix Networks and NAP Info deployed Ciena’s GeoMesh Extreme with WL6e technology on the Batam–Jakarta segment of the Matrix Cable System, enabling 1 Tb/s transmission over 1,055 kilometers and making them among the first Southeast Asian operators to commercially deploy this next-generation optical technology.
The rise of quantum-safe networking is expected to drive demand from telecom operators, cloud providers, governments, defense agencies, financial institutions and healthcare organizations. By commercializing the capabilities demonstrated in the Colt trial, Ciena could unlock new revenue opportunities in security-focused network upgrades.
Can CIEN Stay Ahead of Market Rivals?
Cisco Systems’ (CSCO - Free Report) partner base supports expansion in AI infrastructure and security. It is working with NVIDIA on Cisco Secure AI Factory with NVIDIA, founded on the NVIDIA Spectrum-X Ethernet networking platform, and is including Cisco AI Defense and Cisco Hypershield in validated designs for enterprise AI factories. Cisco also offers NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs with Cisco UCS C845A M8 servers, broadening its compute attach opportunities. Beyond NVIDIA, Cisco has been selected as a technology partner to HUMAIN, a new AI company in Saudi Arabia, alongside partners such as BlackRock Global Infrastructure Partners, MGX, Microsoft, NVIDIA and xAI.
Arista Networks (ANET - Free Report) continues to benefit from its software-driven, data-centric approach that helps customers build scalable cloud infrastructure. The company stated during the first-quarter 2026 earnings call that it now commands the leading market share position in high-speed switching above 10-gigabit Ethernet. Arista is seeing continued demand for 200-gig, 400-gig and 800-gig switching products as enterprises and hyperscale customers upgrade AI and cloud infrastructure. Management highlighted more than 100 cumulative customers in 800-gigabit Ethernet deployments and expects 1.6-terabit production deployments beginning in 2027. It offers a broad portfolio of data center and campus Ethernet switches and routers spanning 1/2.5/5/10/25/40/50/100/400 and emerging 800-gig platforms.
CIEN Price Performance, Valuation and Estimates
Shares of CIEN have gained a whopping 504.6% in the past year compared with the Communications - Components industry’s surge of 328.8%.
Image Source: Zacks Investment Research
Valuation-wise, CIEN seems attractive, as suggested by the Value Score of B. CIEN trades at a forward 12-month price-to-earnings (P/E) ratio of 60.98, above the industry’s 49.15.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CIEN’s earnings for fiscal 2026 has been revised upward over the past 60 days.
Image Source: Zacks Investment Research
CIEN currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.