Ciena Reports Fiscal Third Quarter 2026 Financial Results
• Fiscal third quarter 2026 adjusted Earnings Per Share (EPS) was $2.11, an increase of 215% compared to fiscal third quarter 2025
• Providing revenue guidance for fiscal fourth quarter 2026 of $1.75 billion plus or minus $50 million
• Raising revenue guidance for fiscal year 2026 to $6.42 billion plus or minus $50 million, a 35% increase year-over-year at the midpoint
Ciena ® Corporation (NYSE: CIEN) today announced financial results for its fiscal third quarter ended August 1, 2026.
"Today’s outstanding financial performance demonstrates Ciena’s leadership in providing industry-leading, high-speed connectivity solutions as AI continues to drive compounding waves of network investment,” said Gary Smith, president and CEO, Ciena. “As the only pure-play optical systems and interconnects provider, Ciena’s unmatched combination of incumbency, technology innovation, and deep expertise gives us a powerful competitive edge."
"Our record fiscal third quarter results reflect Ciena’s ability to deliver increasingly profitable growth while positioning for future opportunities,” said Marc Graff, Ciena’s Chief Financial Officer. “Our expanding supply capacity, strengthening business fundamentals, and increasing operating leverage set the stage to continue to accelerate earnings and deliver long-term value for customers and shareholders.”
• $1.67 billion in the fiscal third quarter 2026, compared to $1.22 billion in the fiscal third quarter 2025
• $1.83 GAAP and $2.11 adjusted (non-GAAP) for the fiscal third quarter 2026, compared to $0.35 and $0.67 for fiscal third quarter 2025, respectively
The tables below (in millions, except percentage data) provide comparisons of certain quarterly results. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release. 1
• Adjusted (non-GAAP) operating expense in the range of $415 million plus or minus $10 million
Statements relating to business outlook are forward-looking in nature and actual results may differ materially. These statements should be read in the context of the "Key assumptions underlying our outlook" in our accompanying Earnings Presentation and each of the "Forward-Looking Statements" and "Reconciliation of Adjusted (Non- GAAP) Measurements" found in the Notes to Investors below.
Repurchased approximately 0.4 million shares of common stock for an aggregate price of $171.7 million under the $1 billion share repurchase program. 2 Financial Performance by Segment
Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Third Quarter 2026 Results
Today, Thursday, September 3, 2026, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website certain related supporting materials for its unaudited fiscal third quarter 2026 results.
Ciena's management will also host a discussion today with investors and financial analysts that will include the Company's outlook. The live audio web broadcast beginning at 8:30 a.m. Eastern will be accessible via www.ciena.com. An archived replay of the live broadcast will be available shortly following its conclusion on the Investor Relations page of Ciena's website. 3
You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission ("SEC") filings, recent news, financial results, supplemental financial information, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Forward-looking statements in this release include the "Business Outlook" section of this press release and "Today’s outstanding financial performance demonstrates Ciena’s leadership in providing industry-leading, high-speed connectivity solutions as AI continues to drive compounding waves of network investment. As the only pure-play optical systems and interconnects provider, Ciena’s unmatched combination of incumbency, technology innovation, and deep expertise gives us a powerful competitive edge. Our record fiscal third quarter results reflect Ciena’s ability to deliver increasingly profitable growth while positioning for future opportunities. Our expanding supply capacity, strengthening business fundamentals, and increasing operating leverage set the stage to continue to accelerate earnings and deliver long-term value for customers and shareholders.”
Ciena's actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena's business, including: the effect of broader economic and market conditions on our business and that of our customers, including their spending; the development and use of artificial intelligence and its impact on overall networking technology spending; our ability to execute our business and growth strategies; supply chain constraints or disruptions including increased costs and lead times; the introduction of new technologies by us or our competitors; the timing and size of customer orders, their delivery dates and our ability to fulfill and recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; changes in foreign currency exchange rates; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical tensions or events, and public health emergencies, epidemics, or pandemics; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange Commis sion (SEC) including its Annual Report on Form 10-K filed with the SEC on December 12, 2025 and included in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2026 to be filed with the SEC. Ciena assumes no obligation to update any forward-looking information included in this press release. 4 Non-GAAP Presentation of Quarterly and Annual Results. This release includes non-GAAP measures of Ciena's gross profit, operating expense, income from operations, earnings before interest, tax, depreciation and amortization (EBITDA), Adjusted EBITDA, and measures of net income and net income per share. In evaluating the operating performance of Ciena's business, management excludes certain charges and credits that are required by GAAP. These items share one or more of the following characteristics: they are unusual and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of Ciena's control. Management believes that the non-GAAP measures below provide management and investors useful information and meaningful insight to the operating performance of the business. The presentation of these non-GAAP financial measures should be considered in addition to Ciena's GAAP results and these measures are not intended to be a substitute for the financial information prepared and presented in accordance with GAAP. Ciena's non-GAAP measures and the related adjustments may differ from non-GAAP measures used by other companies and should only be used to evaluate Ciena's results of operations in conjunction with our corresponding GAAP results. To the extent not previously disclosed in a prior Ciena financial results press release, Appendices A and B to this press release set forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.
With respect to Ciena’s expectations under “Business Outlook” above, Ciena is not able to provide a quantitative reconciliation of the adjusted (non-GAAP) gross margin, adjusted (non-GAAP) operating expense, and adjusted (non-GAAP) operating margin guidance measures to the corresponding gross margin, operating expense, and operating margin GAAP measures without unreasonable efforts. Ciena cannot provide meaningful estimates of the non-recurring charges and credits excluded from these non-GAAP measures due to the forward-looking nature of these estimates and their inherent variability and uncertainty. For the same reasons, Ciena is unable to address the probable significance of the unavailable information.
Ciena is the global leader in high-speed connectivity. We build the world’s most advanced networks to support exponential growth in bandwidth demand. By harnessing the power of our networking systems, interconnects, automation software, and services, Ciena revolutionizes data transmission and network management. With unparalleled expertise and innovation, we empower our customers, partners, and communities to thrive in the AI era. For updates on Ciena, follow us on LinkedIn, X, the Ciena Insights blog, or visit www.ciena.com. 5
1 Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 3.9 million and 4.0 million for the third quarter and first nine months ended fiscal 2026, respectively; and (ii) 2.7 million for both the third quarter and first nine months ended fiscal 2025. 6
ASSETS August 1, November 1, Current assets: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 2,445,708 $ 1,091,952 equivalents Short-term investments 184,293 216,148 Accounts receivable, net 1,233,610 975,856 Inventories, net 871,987 826,235 Prepaid expenses and 527,014 455,316 other Total current assets 5,262,612 3,565,507 Long-term investments 213,553 57,142 Equipment, building, furniture and 491,656 386,779 fixtures, net Operating lease 45,667 38,613 right-of-use assets Goodwill 513,340 521,204 Other intangible assets, 188,824 224,210 net Deferred tax asset, net 1,092,726 884,889 Other long-term assets 188,862 186,323 Total assets $ 7,997,240 $ 5,864,667 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 654,070 $ 542,841 Accrued liabilities and other short-term 508,149 531,081 obligations Deferred revenue 211,453 208,936 Operating lease 12,261 13,956 liabilities Current portion of — 11,580 long-term debt Total current 1,385,933 1,308,394 liabilities Long-term deferred 99,828 94,850 revenue Other long-term 186,265 175,426 obligations Long-term operating 38,633 32,516 lease liabilities Long-term debt, net 3,229,843 1,524,158 Total liabilities 4,940,502 3,135,344 Stockholders’ equity: Preferred stock – par value $0.01; 20,000,000 shares — — authorized; zero shares issued and outstanding Common stock – par value $0.01; 290,000,000 shares authorized; 1,419 1,410 141,897,511 and 141,016,300 shares issued and outstanding Additional paid-in 5,655,535 5,953,057 capital Accumulated other -65,028 -55,035 comprehensive loss Accumulated deficit -2,535,188 -3,170,109 Total stockholders’ 3,056,738 2,729,323 equity Total liabilities and stockholders’ $ 7,997,240 $ 5,864,667 equity
Cash flows provided Nine Months Ended by operating August 1, August 2, activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 634,921 $ 103,849 Adjustments to reconcile net income to net cash provided by operating activities: Loss on extinguishment of 7,143 159 debt Depreciation of equipment, building, furniture and 102,347 76,637 fixtures, and amortization of leasehold improvements Share-based compensation 163,178 135,696 expense Amortization of 35,386 26,343 intangible assets Deferred taxes 49,266 -21,709 Provision for inventory excess 72,428 34,185 and obsolescence Provision for 30,050 16,302 warranty Other -724 -1,997 Changes in assets and liabilities: Accounts receivable -251,531 -116,887 Inventories -118,334 -73,493 Prepaid expenses -111,567 137,440 and other Operating lease 7,956 8,759 right-of-use assets Accounts payable, accruals and other 66,956 83,354 obligations Deferred revenue 6,764 38,246 Short and long-term operating lease -10,633 -11,868 liabilities Net cash provided by operating 683,606 435,016 activities Cash flows used in investing activities: Payments for equipment, -194,893 -95,373 furniture, and fixtures Purchases of -325,629 -191,335 investments Proceeds from sales and maturities of 203,097 261,611 investments Settlement of foreign currency 2,259 -2,635 forward contracts, net Net cash used in investing -315,166 -27,732 activities Cash flows provided by (used in) financing activities: Proceeds for modification of — 19,175 debt, net Cash paid for extinguishment of -1,140,930 -19,175 debt Payment of long -5,790 -8,685 term debt Payment for convertible bond -988,425 — hedge Proceeds from sale 873,425 — of warrants Proceeds from issuance of 2,875,000 — convertible notes Payment of debt -43,622 -12 issuance costs Payment of finance -3,572 -3,244 lease obligations Shares repurchased for tax withholdings -278,338 -60,043 on vesting of stock unit awards Repurchases of common stock - -337,914 -250,035 repurchase program, net Proceeds from issuance of common 38,025 35,874 stock Net cash provided by (used in) 987,859 -286,145 financing activities Effect of exchange rate changes on cash, -2,554 60 cash equivalents and restricted cash Net increase in cash, cash 1,353,745 121,199 equivalents and restricted cash Cash, cash equivalents and restricted 1,092,197 935,026 cash at beginning of period Cash, cash equivalents and restricted $ 2,445,942 $ 1,056,225 cash at end of period Supplemental disclosure of cash flow information Cash paid during the period for $ 58,712 $ 68,243 interest, net Cash paid during the period for $ 84,583 $ 84,898 income taxes, net Operating lease $ 12,383 $ 13,246 payments Non-cash investing and financing activities Purchase of equipment in $ 24,987 $ 14,819 accounts payable Repurchase of common stock in accrued $ — $ 2,231 liabilities from repurchase program, net Operating right-of-use assets $ 16,144 $ 21,850 subject to lease liability
APPENDIX A - Reconcilia… of Adjusted (Non- GAAP) Measuremen… (in thousands, except per share data) Quarter (unaudited) Ended ────────────────────────────────────────────────────────────────────────────── August 1, August 2, 2026 2025 Gross Profit Reconcilia… (GAAP/non-… GAAP gross $ 759,265 $ 503,079 profit Share-based 2,175 2,027 compensati… Share-based 4,666 3,942 compensati… Amortizati… of 9,652 2,232 intangible assets Total adjustments related to 16,493 8,201 gross profit Adjusted (non-GAAP) $ 775,758 $ 511,280 gross profit Adjusted (non-GAAP) gross 46.4 % 41.9 % profit percentage Operating Expense Reconcilia… (GAAP/non-… GAAP operating $ 458,086 $ 429,544 expense Share-based compensati… 20,173 16,749 and development Share-based compensati… 16,623 13,277 and marketing Share-based compensati… 14,241 11,008 and administra… Significant asset impairments 887 1,770 and restructur… costs Amortizati… of 3,713 6,556 intangible assets Holdback 2,419 — arrangement Total adjustments related to 58,056 49,360 operating expense Adjusted (non-GAAP) $ 400,030 $ 380,184 operating expense Income from Operations Reconcilia… (GAAP/non-… GAAP income from $ 301,179 $ 73,535 operations Total adjustments related to 16,493 8,201 gross profit Total adjustments related to 58,056 49,360 operating expense Total adjustments related to 74,549 57,561 income from operations Adjusted (non-GAAP) $ 375,728 $ 131,096 income from operations Adjusted (non-GAAP) operating 22.5 % 10.7 % margin percentage Net Income Reconcilia… (GAAP/non-… GAAP net $ 266,418 $ 50,308 income Exclude GAAP provision 44,203 15,511 for income taxes Income before 310,621 65,819 income taxes Total adjustments related to 74,549 57,561 income from operations Loss on extinguish… 7,143 — of debt Gain on early termination -7,720 — of interest rate swaps Adjusted income before 384,593 123,380 income taxes Non-GAAP tax provision on adjusted 76,919 27,144 income before income taxes Adjusted (non-GAAP) $ 307,674 $ 96,236 net income Weighted average basic 142,061 141,846 common shares outstanding Weighted average dilutive potential 145,967 144,499 common shares outstandin… Net Income per Common Share GAAP diluted net income per $ 1.83 $ 0.35 potential common share Adjusted (non-GAAP) diluted net income $ 2.11 $ 0.67 per potential common share
1 Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 3.9 million for the third quarter ended fiscal 2026; and (ii) 2.7 million for the third quarter ended fiscal 2025. 9
APPENDIX B - Calculation of EBITDA and Adjusted EBITDA (in thousands) (unaudited) Quarter Ended ────────────────────────────────────────────────────────────────────────────── August 1, August 2, 2026 2025 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Net income (GAAP) $ 266,418 $ 50,308 Add: Interest expense 5,803 22,806 Less: Interest and other 22,388 15,090 income, net Add: Loss on extinguishment 7,143 — of debt Add: Provision for income 44,203 15,511 taxes Add: Depreciation of equipment, building, 35,326 26,866 furniture and fixtures, and amortization of leasehold improvements Add: Amortization of 13,365 8,788 intangible assets EBITDA $ 349,870 $ 109,189 Add: Share-based 57,878 47,003 compensation expense Add: Significant asset impairments and 887 1,770 restructuring costs Add: Holdback arrangement 2,419 — Adjusted EBITDA $ 411,054 $ 157,962
* * * The adjusted (non-GAAP) measures above and their reconciliation to Ciena's GAAP results for the periods presented reflect adjustments relating to the following items:
• Share-based compensation - a non-cash expense incurred in accordance with share-based compensation accounting guidance.
• Significant asset impairments and restructuring costs - non-recurring costs p rimarily reflecting expenses associated with actions Ciena has taken to restructure our business, including reductions in force, facility optimization, and the redesign of business processes.
• Amortization of intangible assets - a non-cash expense arising from the acquisition of intangible assets, principally developed technologies and customer-related intangibles, that Ciena is required to amortize over an expected useful life.
• Holdback arrangement - reflects a one-time holdback of a portion of the merger consideration otherwise payable at closing to certain key employee shareholders of Nubis Communications, Inc. who became employees of Ciena, which is treated as contingent compensation for GAAP reporting purposes. These transaction-related amounts are not part of Ciena's standard compensation and benefits.
• Loss on extinguishment of debt - reflects extinguishment expenses related to repayment of Ciena's term loan in connection with Ciena's convertible notes offering during the third quarter of fiscal 2026.
• Gain on early termination of swaps - reflects the market value at settlement of Ciena's interest rate swaps designated as cash flow hedges which were terminated in parallel with the repayment of our refinanced 2030 term loan during the third quarter of fiscal 2026.
• Non-GAAP tax provision - consists of current and deferred income tax expense commensurate with the level of adjusted income before income taxes and utilizes a current, blended U.S. and foreign statutory annual tax rate of 20% for the third quarter of fiscal 2026 and 22% for the third quarter of fiscal 2025. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy. 10
Full text with the tables
FOR IMMEDIATE RELEASE
Ciena Reports Fiscal Third Quarter 2026 Financial Results
Summary
• Fiscal third quarter 2026 revenue was $1.67 billion, up 37% year-over-year
• Fiscal third quarter 2026 adjusted Earnings Per Share (EPS) was $2.11, an
increase of 215% compared to fiscal third quarter 2025
• Providing revenue guidance for fiscal fourth quarter 2026 of $1.75 billion
plus or minus $50 million
• Raising revenue guidance for fiscal year 2026 to $6.42 billion plus or minus
$50 million, a 35% increase year-over-year at the midpoint
FULTON, Md. - September 3, 2026 -
Ciena ® Corporation (NYSE: CIEN) today announced financial results for its
fiscal third quarter ended August 1, 2026.
"Today’s outstanding financial performance demonstrates Ciena’s leadership in
providing industry-leading, high-speed connectivity solutions as AI continues to
drive compounding waves of network investment,” said Gary Smith, president and
CEO, Ciena. “As the only pure-play optical systems and interconnects provider,
Ciena’s unmatched combination of incumbency, technology innovation, and deep
expertise gives us a powerful competitive edge."
"Our record fiscal third quarter results reflect Ciena’s ability to deliver
increasingly profitable growth while positioning for future opportunities,” said
Marc Graff, Ciena’s Chief Financial Officer. “Our expanding supply capacity,
strengthening business fundamentals, and increasing operating leverage set the
stage to continue to accelerate earnings and deliver long-term value for
customers and shareholders.”
Performance Summary for Fiscal Third Quarter Ended August 1, 2026
Revenue:
• $1.67 billion in the fiscal third quarter 2026, compared to $1.22 billion in
the fiscal third quarter 2025
Net Income per diluted share:
• $1.83 GAAP and $2.11 adjusted (non-GAAP) for the fiscal third quarter 2026,
compared to $0.35 and $0.67 for fiscal third quarter 2025, respectively
The tables below (in millions, except percentage data) provide comparisons of
certain quarterly results. Appendices A and B set forth reconciliations between
the GAAP and adjusted (non-GAAP) measures contained in this release.
1
G… …
R… …
(… …
Q… …
E… P… … …
──────────────────────────────────────────────────────────────────────────────
A… A… C… … … …
1, 2, … …
2… 2… Y… … … …
… $ 1… $ 1… 3… % $ 1… $ 1… 3… %
… 4… % 4… % 4… % 4… % 4… % 4… %
…
… $ 4… $ 4… 6… % $ 4… $ 3… 5… %
…
… 1… % 6… % 1… % 2… % 1… % 1… %
…
… $ 3… $ 1… 2… % $ 4… $ 1… 1… %
* Denotes % change, or in the case of margin, absolute change
Business Outlook
Ciena expects fiscal fourth quarter 2026 to include:
• Revenue of $1.75B billion plus or minus $50 million
• Adjusted (non-GAAP) gross margin in the range of 45% plus or minus 50 bps
• Adjusted (non-GAAP) operating expense in the range of $415 million plus or
minus $10 million
• Adjusted (non-GAAP) operating margin in the range of 20% plus or minus 50 bps
Statements relating to business outlook are forward-looking in nature and actual
results may differ materially. These statements should be read in the context of
the "Key assumptions underlying our outlook" in our accompanying Earnings
Presentation and each of the "Forward-Looking Statements" and "Reconciliation of
Adjusted (Non- GAAP) Measurements" found in the Notes to Investors below.
Financial Highlights for the Fiscal Third Quarter 2026
•
Two customers represented 10%-plus of revenue for a total of 41.7% of revenue.
•
Average days' sales outstanding (DSOs) were 76.
•
Inventory turns were 3.5.
•
Repurchased approximately 0.4 million shares of common stock for an aggregate
price of $171.7 million under the $1 billion share repurchase program.
2
Financial Performance by Segment
Revenue
by
Segment
(unaud…
Quarter August August
Ended 1, 2026 2, 2025
──────────────────────────────────────────────────────────────────────────────
Revenue %** Revenue %**
Networ…
Platfo…
Optical $ 1,191.3 71.3 $ 815.5 66.9
Networ…
Routing
and 164.4 9.8 125.9 10.3
Switch…
Total
Networ… 1,355.7 81.1 941.4 77.2
Platfo…
Platfo…
Softwa… 98.6 5.9 90.0 7.4
and
Servic…
Blue
Planet
Automa… 23.2 1.4 27.8 2.3
Softwa…
and
Servic…
Global
Servic…
Mainte…
Suppor… 89.8 5.4 80.7 6.6
and
Learni…
Implem… 87.9 5.3 65.9 5.4
Adviso…
and 15.9 0.9 13.6 1.1
Enable…
Total
Global 193.6 11.6 160.2 13.1
Servic…
Total $ 1,671.1 100.0 $ 1,219.4 100.0
** Denotes % of total revenue
Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Third Quarter
2026 Results
Today, Thursday, September 3, 2026, in conjunction with this announcement, Ciena
has posted to the Quarterly Results page of the Investor Relations section of
its website certain related supporting materials for its unaudited fiscal third
quarter 2026 results.
Ciena's management will also host a discussion today with investors and
financial analysts that will include the Company's outlook. The live audio web
broadcast beginning at 8:30 a.m. Eastern will be accessible via www.ciena.com.
An archived replay of the live broadcast will be available shortly following its
conclusion on the Investor Relations page of Ciena's website.
3
Notes to Investors
Forward-Looking Statements.
You are encouraged to review the Investors section of our website, where we
routinely post press releases, Securities and Exchange Commission ("SEC")
filings, recent news, financial results, supplemental financial information, and
other announcements. From time to time we exclusively post material information
to this website along with other disclosure channels that we use. This press
release contains certain forward-looking statements that involve risks and
uncertainties. These statements are based on current expectations, forecasts,
assumptions and other information available to the Company as of the date
hereof. Forward-looking statements include statements regarding Ciena's
expectations, beliefs, intentions or strategies regarding the future and can be
identified by forward-looking words such as "anticipate," "believe," "could,"
"estimate," "expect," "intend," "may," "should," "will," and "would" or similar
words. Forward-looking statements in this release include the "Business Outlook"
section of this press release and "Today’s outstanding financial performance
demonstrates Ciena’s leadership in providing industry-leading, high-speed
connectivity solutions as AI continues to drive compounding waves of network
investment. As the only pure-play optical systems and interconnects provider,
Ciena’s unmatched combination of incumbency, technology innovation, and deep
expertise gives us a powerful competitive edge. Our record fiscal third quarter
results reflect Ciena’s ability to deliver increasingly profitable growth while
positioning for future opportunities. Our expanding supply capacity,
strengthening business fundamentals, and increasing operating leverage set the
stage to continue to accelerate earnings and deliver long-term value for
customers and shareholders.”
Ciena's actual results, performance or events may differ materially from these
forward-looking statements made or implied due to a number of risks and
uncertainties relating to Ciena's business, including: the effect of broader
economic and market conditions on our business and that of our customers,
including their spending; the development and use of artificial intelligence and
its impact on overall networking technology spending; our ability to execute our
business and growth strategies; supply chain constraints or disruptions
including increased costs and lead times; the introduction of new technologies
by us or our competitors; the timing and size of customer orders, their delivery
dates and our ability to fulfill and recognize revenue relating to such sales;
the level of competitive pressure we encounter; the product, customer and
geographic mix of sales within the period; changes in foreign currency exchange
rates; factors beyond our control such as natural disasters, climate change,
acts of war or terrorism, geopolitical tensions or events, and public health
emergencies, epidemics, or pandemics; changes in tax or trade regulations,
including the imposition of tariffs, duties or efforts to withdraw from or
materially modify international trade agreements; cyberattacks, data breaches or
other security incidents involving our enterprise network environment or our
products; regulatory changes, litigation involving our intellectual property or
government investigations; and the other risk factors disclosed in Ciena’s
periodic reports filed with the Securities and Exchange Commis sion (SEC)
including its Annual Report on Form 10-K filed with the SEC on December 12, 2025
and included in its Quarterly Report on Form 10-Q for the third quarter of
fiscal 2026 to be filed with the SEC. Ciena assumes no obligation to update any
forward-looking information included in this press release.
4
Non-GAAP Presentation of Quarterly and Annual Results. This release includes
non-GAAP measures of Ciena's gross profit, operating expense, income from
operations, earnings before interest, tax, depreciation and amortization
(EBITDA), Adjusted EBITDA, and measures of net income and net income per share.
In evaluating the operating performance of Ciena's business, management excludes
certain charges and credits that are required by GAAP. These items share one or
more of the following characteristics: they are unusual and Ciena does not
expect them to recur in the ordinary course of its business; they do not involve
the expenditure of cash; they are unrelated to the ongoing operation of the
business in the ordinary course; or their magnitude and timing is largely
outside of Ciena's control. Management believes that the non-GAAP measures below
provide management and investors useful information and meaningful insight to
the operating performance of the business. The presentation of these non-GAAP
financial measures should be considered in addition to Ciena's GAAP results and
these measures are not intended to be a substitute for the financial information
prepared and presented in accordance with GAAP. Ciena's non-GAAP measures and
the related adjustments may differ from non-GAAP measures used by other
companies and should only be used to evaluate Ciena's results of operations in
conjunction with our corresponding GAAP results. To the extent not previously
disclosed in a prior Ciena financial results press release, Appendices A and B
to this press release set forth a complete GAAP to non-GAAP reconciliation of
the non-GAAP measures contained in this release.
With respect to Ciena’s expectations under “Business Outlook” above, Ciena is
not able to provide a quantitative reconciliation of the adjusted (non-GAAP)
gross margin, adjusted (non-GAAP) operating expense, and adjusted (non-GAAP)
operating margin guidance measures to the corresponding gross margin, operating
expense, and operating margin GAAP measures without unreasonable efforts. Ciena
cannot provide meaningful estimates of the non-recurring charges and credits
excluded from these non-GAAP measures due to the forward-looking nature of these
estimates and their inherent variability and uncertainty. For the same reasons,
Ciena is unable to address the probable significance of the unavailable
information.
About Ciena.
Ciena is the global leader in high-speed connectivity. We build the world’s most
advanced networks to support exponential growth in bandwidth demand. By
harnessing the power of our networking systems, interconnects, automation
software, and services, Ciena revolutionizes data transmission and network
management. With unparalleled expertise and innovation, we empower our
customers, partners, and communities to thrive in the AI era. For updates on
Ciena, follow us on LinkedIn, X, the Ciena Insights blog, or visit
www.ciena.com.
5
CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Nine
Quart… Months
Ended Ended
──────────────────────────────────────────────────────────────────────────────
August August August Augu…
1, 2, 1, 2,
2026 2025 2026 2025
Reve…
Prod… $ 1,390… $ 976,8… $ 3,881… $ 2,730…
Serv… 280,8… 242,5… 787,2… 687,3…
Total 1,671… 1,219… 4,668… 3,417…
reve…
Cost
of
goods
sold:
Prod… 768,6… 580,0… 2,171… 1,620…
Serv… 143,2… 136,2… 421,2… 368,9…
Total
cost
of 911,8… 716,3… 2,592… 1,989…
goods
sold
Gross 759,2… 503,0… 2,076… 1,427…
prof…
Oper…
expe…
Rese…
and 236,6… 211,8… 696,0… 619,4…
deve…
Sell…
and 153,9… 148,7… 452,8… 424,9…
mark…
Gene…
and 62,844 60,596 183,3… 171,4…
admi…
Sign…
asset
impa… 887 1,770 3,190 5,262
and
rest…
costs
Amor…
of 3,713 6,556 12,162 19,646
inta…
asse…
Acqu…
and — — 306 —
inte…
costs
Total
oper… 458,0… 429,5… 1,347… 1,240…
expe…
Inco…
from 301,1… 73,535 728,4… 187,0…
oper…
Inte…
and
other 22,388 15,090 49,456 34,539
inco…
net
Inte… -5,803 -22,8… -47,9… -67,4…
expe…
Loss
on
exti…
and -7,143 — -7,143 -729
modi…
of
debt
Inco…
befo… 310,6… 65,819 722,7… 153,4…
inco…
taxes
Prov…
for 44,203 15,511 87,875 49,580
inco…
taxes
Net $ 266,4… $ 50,308 $ 634,9… $ 103,8…
inco…
Net
Inco…
per
Comm…
Share
Basic
net
inco… $ 1.88 $ 0.35 $ 4.46 $ 0.73
per
comm…
share
Dilu…
net
inco…
per $ 1.83 $ 0.35 $ 4.34 $ 0.72
pote…
comm…
share
Weig…
aver…
basic 142,0… 141,8… 142,2… 142,4…
comm…
shar…
outs…
Weig…
aver…
dilu…
pote… 145,9… 144,4… 146,2… 145,1…
comm…
shar…
outs…
1 Weighted average dilutive potential common shares outstanding used in
calculating GAAP diluted net income per potential common share includes the
following number of shares underlying certain stock option and stock unit
awards: (i) 3.9 million and 4.0 million for the third quarter and first nine
months ended fiscal 2026, respectively; and (ii) 2.7 million for both the third
quarter and first nine months ended fiscal 2025.
6
`CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
ASSETS August 1, November 1,
Current assets: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 2,445,708 $ 1,091,952
equivalents
Short-term investments 184,293 216,148
Accounts receivable, net 1,233,610 975,856
Inventories, net 871,987 826,235
Prepaid expenses and 527,014 455,316
other
Total current assets 5,262,612 3,565,507
Long-term investments 213,553 57,142
Equipment, building,
furniture and 491,656 386,779
fixtures, net
Operating lease 45,667 38,613
right-of-use assets
Goodwill 513,340 521,204
Other intangible assets, 188,824 224,210
net
Deferred tax asset, net 1,092,726 884,889
Other long-term assets 188,862 186,323
Total assets $ 7,997,240 $ 5,864,667
LIABILITIES AND
STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 654,070 $ 542,841
Accrued liabilities and
other short-term 508,149 531,081
obligations
Deferred revenue 211,453 208,936
Operating lease 12,261 13,956
liabilities
Current portion of — 11,580
long-term debt
Total current 1,385,933 1,308,394
liabilities
Long-term deferred 99,828 94,850
revenue
Other long-term 186,265 175,426
obligations
Long-term operating 38,633 32,516
lease liabilities
Long-term debt, net 3,229,843 1,524,158
Total liabilities 4,940,502 3,135,344
Stockholders’ equity:
Preferred stock – par
value $0.01;
20,000,000 shares — —
authorized; zero
shares issued and
outstanding
Common stock – par value
$0.01;
290,000,000 shares
authorized; 1,419 1,410
141,897,511 and
141,016,300 shares
issued and outstanding
Additional paid-in 5,655,535 5,953,057
capital
Accumulated other -65,028 -55,035
comprehensive loss
Accumulated deficit -2,535,188 -3,170,109
Total stockholders’ 3,056,738 2,729,323
equity
Total liabilities and
stockholders’ $ 7,997,240 $ 5,864,667
equity
7
CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Cash flows provided Nine Months Ended
by operating August 1, August 2,
activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 634,921 $ 103,849
Adjustments to
reconcile net
income to
net cash provided
by operating
activities:
Loss on
extinguishment of 7,143 159
debt
Depreciation of
equipment,
building,
furniture and 102,347 76,637
fixtures, and
amortization
of leasehold
improvements
Share-based
compensation 163,178 135,696
expense
Amortization of 35,386 26,343
intangible assets
Deferred taxes 49,266 -21,709
Provision for
inventory excess 72,428 34,185
and
obsolescence
Provision for 30,050 16,302
warranty
Other -724 -1,997
Changes in assets
and liabilities:
Accounts receivable -251,531 -116,887
Inventories -118,334 -73,493
Prepaid expenses -111,567 137,440
and other
Operating lease 7,956 8,759
right-of-use assets
Accounts payable,
accruals and other 66,956 83,354
obligations
Deferred revenue 6,764 38,246
Short and long-term
operating lease -10,633 -11,868
liabilities
Net cash provided
by operating 683,606 435,016
activities
Cash flows used in
investing
activities:
Payments for
equipment, -194,893 -95,373
furniture, and
fixtures
Purchases of -325,629 -191,335
investments
Proceeds from sales
and maturities of 203,097 261,611
investments
Settlement of
foreign currency 2,259 -2,635
forward
contracts, net
Net cash used in
investing -315,166 -27,732
activities
Cash flows provided
by (used in)
financing
activities:
Proceeds for
modification of — 19,175
debt, net
Cash paid for
extinguishment of -1,140,930 -19,175
debt
Payment of long -5,790 -8,685
term debt
Payment for
convertible bond -988,425 —
hedge
Proceeds from sale 873,425 —
of warrants
Proceeds from
issuance of 2,875,000 —
convertible
notes
Payment of debt -43,622 -12
issuance costs
Payment of finance -3,572 -3,244
lease obligations
Shares repurchased
for tax
withholdings -278,338 -60,043
on vesting of stock
unit awards
Repurchases of
common stock - -337,914 -250,035
repurchase
program, net
Proceeds from
issuance of common 38,025 35,874
stock
Net cash provided
by (used in) 987,859 -286,145
financing
activities
Effect of exchange
rate changes on
cash, -2,554 60
cash equivalents
and restricted cash
Net increase in
cash, cash 1,353,745 121,199
equivalents
and restricted cash
Cash, cash
equivalents and
restricted 1,092,197 935,026
cash at beginning
of period
Cash, cash
equivalents and
restricted $ 2,445,942 $ 1,056,225
cash at end of
period
Supplemental
disclosure of cash
flow
information
Cash paid during
the period for $ 58,712 $ 68,243
interest, net
Cash paid during
the period for $ 84,583 $ 84,898
income
taxes, net
Operating lease $ 12,383 $ 13,246
payments
Non-cash investing
and financing
activities
Purchase of
equipment in $ 24,987 $ 14,819
accounts
payable
Repurchase of
common stock in
accrued $ — $ 2,231
liabilities from
repurchase program,
net
Operating
right-of-use assets $ 16,144 $ 21,850
subject to
lease liability
8
APPENDIX A
-
Reconcilia…
of Adjusted
(Non- GAAP)
Measuremen…
(in
thousands,
except per
share data) Quarter
(unaudited) Ended
──────────────────────────────────────────────────────────────────────────────
August 1, August 2,
2026 2025
Gross
Profit
Reconcilia…
(GAAP/non-…
GAAP gross $ 759,265 $ 503,079
profit
Share-based 2,175 2,027
compensati…
Share-based 4,666 3,942
compensati…
Amortizati…
of 9,652 2,232
intangible
assets
Total
adjustments
related to 16,493 8,201
gross
profit
Adjusted
(non-GAAP) $ 775,758 $ 511,280
gross
profit
Adjusted
(non-GAAP)
gross 46.4 % 41.9 %
profit
percentage
Operating
Expense
Reconcilia…
(GAAP/non-…
GAAP
operating $ 458,086 $ 429,544
expense
Share-based
compensati… 20,173 16,749
and
development
Share-based
compensati… 16,623 13,277
and
marketing
Share-based
compensati… 14,241 11,008
and
administra…
Significant
asset
impairments 887 1,770
and
restructur…
costs
Amortizati…
of 3,713 6,556
intangible
assets
Holdback 2,419 —
arrangement
Total
adjustments
related to 58,056 49,360
operating
expense
Adjusted
(non-GAAP) $ 400,030 $ 380,184
operating
expense
Income from
Operations
Reconcilia…
(GAAP/non-…
GAAP income
from $ 301,179 $ 73,535
operations
Total
adjustments
related to 16,493 8,201
gross
profit
Total
adjustments
related to 58,056 49,360
operating
expense
Total
adjustments
related to 74,549 57,561
income from
operations
Adjusted
(non-GAAP) $ 375,728 $ 131,096
income from
operations
Adjusted
(non-GAAP)
operating 22.5 % 10.7 %
margin
percentage
Net Income
Reconcilia…
(GAAP/non-…
GAAP net $ 266,418 $ 50,308
income
Exclude
GAAP
provision 44,203 15,511
for income
taxes
Income
before 310,621 65,819
income
taxes
Total
adjustments
related to 74,549 57,561
income from
operations
Loss on
extinguish… 7,143 —
of debt
Gain on
early
termination -7,720 —
of interest
rate swaps
Adjusted
income
before 384,593 123,380
income
taxes
Non-GAAP
tax
provision
on adjusted 76,919 27,144
income
before
income
taxes
Adjusted
(non-GAAP) $ 307,674 $ 96,236
net income
Weighted
average
basic 142,061 141,846
common
shares
outstanding
Weighted
average
dilutive
potential 145,967 144,499
common
shares
outstandin…
Net Income
per Common
Share
GAAP
diluted net
income per $ 1.83 $ 0.35
potential
common
share
Adjusted
(non-GAAP)
diluted net
income $ 2.11 $ 0.67
per
potential
common
share
1 Weighted average dilutive potential common shares outstanding used in
calculating Adjusted (non-GAAP) diluted net income per potential common share
includes the following number of shares underlying certain stock option and
stock unit awards: (i) 3.9 million for the third quarter ended fiscal 2026; and
(ii) 2.7 million for the third quarter ended fiscal 2025.
9
APPENDIX B - Calculation of
EBITDA and Adjusted EBITDA
(in thousands) (unaudited) Quarter Ended
──────────────────────────────────────────────────────────────────────────────
August 1, August 2,
2026 2025
Earnings Before Interest,
Tax,
Depreciation and
Amortization (EBITDA)
Net income (GAAP) $ 266,418 $ 50,308
Add: Interest expense 5,803 22,806
Less: Interest and other 22,388 15,090
income, net
Add: Loss on extinguishment 7,143 —
of debt
Add: Provision for income 44,203 15,511
taxes
Add:
Depreciation of equipment,
building, 35,326 26,866
furniture and fixtures, and
amortization
of leasehold improvements
Add: Amortization of 13,365 8,788
intangible assets
EBITDA $ 349,870 $ 109,189
Add: Share-based 57,878 47,003
compensation expense
Add: Significant asset
impairments and 887 1,770
restructuring costs
Add: Holdback arrangement 2,419 —
Adjusted EBITDA $ 411,054 $ 157,962
* * *
The adjusted (non-GAAP) measures above and their reconciliation to Ciena's GAAP
results for the periods presented reflect adjustments relating to the following
items:
• Share-based compensation - a non-cash expense incurred in accordance with
share-based compensation accounting guidance.
• Significant asset impairments and restructuring costs - non-recurring costs p
rimarily reflecting expenses associated with actions Ciena has taken to
restructure our business, including reductions in force, facility optimization,
and the redesign of business processes.
• Amortization of intangible assets - a non-cash expense arising from the
acquisition of intangible assets, principally developed technologies and
customer-related intangibles, that Ciena is required to amortize over an
expected useful life.
• Holdback arrangement - reflects a one-time holdback of a portion of the merger
consideration otherwise payable at closing to certain key employee shareholders
of Nubis Communications, Inc. who became employees of Ciena, which is treated as
contingent compensation for GAAP reporting purposes. These transaction-related
amounts are not part of Ciena's standard compensation and benefits.
• Loss on extinguishment of debt - reflects extinguishment expenses related to
repayment of Ciena's term loan in connection with Ciena's convertible notes
offering during the third quarter of fiscal 2026.
• Gain on early termination of swaps - reflects the market value at settlement
of Ciena's interest rate swaps designated as cash flow hedges which were
terminated in parallel with the repayment of our refinanced 2030 term loan
during the third quarter of fiscal 2026.
• Non-GAAP tax provision - consists of current and deferred income tax expense
commensurate with the level of adjusted income before income taxes and utilizes
a current, blended U.S. and foreign statutory annual tax rate of 20% for the
third quarter of fiscal 2026 and 22% for the third quarter of fiscal 2025. This
rate may be subject to change in the future, including as a result of changes in
tax policy or tax strategy.
10