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FOR IMMEDIATE RELEASE

Ciena Reports Fiscal Second Quarter 2026 Financial Results


Summary
•Fiscal second quarter 2026 revenue was $1.57 billion, up 40% year-over-year
•Fiscal second quarter 2026 adjusted Earnings Per Share (EPS) was $1.64, an increase of 290% compared to fiscal second quarter 2025
•Providing revenue guidance for fiscal third quarter 2026 of $1.625 billion plus or minus $50 million
•Raising revenue guidance for fiscal year 2026 to $6.3 billion plus or minus $100 million, a 32% increase YoY at the midpoint

HANOVER, Md. - June 4, 2026 - Ciena® Corporation (NYSE: CIEN) today announced financial results for its fiscal second quarter ended May 2, 2026.
"Today's results reflect the strength of our portfolio, the power of our business model, and disciplined execution in a dynamic supply environment," said Gary Smith, president and CEO, Ciena. "Our long-term strategy to be the global leader in high-speed connectivity - both across the WAN and in and around the data center - is tightly aligned to the structural, multi-year opportunities created by AI-driven demand, positioning us to capitalize on market dynamics and drive sustained, profitable growth."

"We delivered strong fiscal second quarter results, marked by significant year-over-year revenue growth, adjusted gross margin expansion, and nearly fourfold growth in adjusted earnings per share," said Marc Graff, Ciena’s Chief Financial Officer. "Our demonstrated ability to drive operating leverage gives us confidence in continued earnings expansion and long-term value creation for customers and shareholders."
Performance Summary for Fiscal Second Quarter Ended May 2, 2026
Revenue:
•$1.57 billion in the fiscal second quarter 2026, compared to $1.13 billion in the fiscal second quarter 2025

Net Income per diluted share:
•$1.49 GAAP and $1.64 adjusted (non-GAAP) for the fiscal second quarter 2026, compared to $0.06 and $0.42 for fiscal second 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.
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GAAP Results (unaudited)Non-GAAP Results (unaudited)
Quarter EndedPeriodQuarter EndedPeriod
May 2,May 3,ChangeMay 2,May 3,Change
20262025Y-T-Y*20262025Y-T-Y*
Revenue$1,570.7 $1,125.9 39.5 %$1,570.7 $1,125.9 39.5 %
Gross margin44.0 %40.2 %3.8 %44.9 %41.0 %3.9 %
Operating expense$453.7 $420.0 8.0 %$397.8 $369.5 7.7 %
Operating margin15.1 %2.9 %12.2 %19.5 %8.2 %11.3 %
EBITDA$283.1 $66.7 324.4 %$341.8 $116.7 192.9 %
* Denotes % change, or in the case of margin, absolute change
Business Outlook
Ciena expects fiscal third quarter 2026 to include:
•Revenue of $1.625B 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 $410 million plus or minus $10 million
•Adjusted (non-GAAP) operating margin between 19% and 20%
Ciena expects fiscal year 2026 to include:
•Revenue of $6.3 billion plus or minus $100 million
•Adjusted (non-GAAP) gross margin between 44.5% and 45%
•Adjusted (non-GAAP) operating expense in the range of $1.61 billion plus or minus $20 million
•Adjusted (non-GAAP) operating margin in the range of 19% plus or minus 50bps

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 Second Quarter 2026
•Two customers represented 10%-plus of revenue for a total of 34.0% of revenue.
•Average days' sales outstanding (DSOs) were 71.
•Inventory turns were 3.6.
•Repurchased approximately 0.2 million shares of common stock for an aggregate price of $83.1 million under the $1 billion share repurchase program.
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Financial Performance by Segment
Revenue by Segment (unaudited)
Quarter Ended
May 2, 2026May 3, 2025
Revenue%**Revenue%**
Networking Platforms
Optical Networking$1,099.8 70.0 $773.6 68.7 
Routing and Switching174.2 11.1 92.7 8.2 
Total Networking Platforms1,274.0 81.1 866.3 76.9 
Platform Software and Services93.9 6.0 85.4 7.5 
Blue Planet Automation Software and Services23.4 1.5 28.0 2.5 
Global Services
Maintenance, Support, and Learning89.3 5.7 79.4 7.1 
Implementation79.7 5.1 58.2 5.2 
Advisory and Enablement10.4 0.6 8.6 0.8 
Total Global Services179.4 11.4 146.2 13.1 
Total$1,570.7 100.0 $1,125.9 100.0 
** Denotes % of total revenue

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Second Quarter 2026 Results
Today, Thursday, June 4, 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 second 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.

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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 results reflect the strength of our portfolio, the power of our business model, and disciplined execution in a dynamic supply environment. Our long-term strategy to be the global leader in high-speed connectivity - both across the WAN and in and around the data center - is tightly aligned to the structural, multi-year opportunities created by AI-driven demand, positioning us to capitalize on market dynamics and drive sustained, profitable growth. We delivered strong fiscal second quarter results, marked by significant year-over-year revenue growth, adjusted gross margin expansion, and nearly fourfold growth in adjusted earnings per share. Our demonstrated ability to drive operating leverage gives us confidence in continued earnings expansion and long-term value creation 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 Commission (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 second 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.

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.
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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.
 

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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter EndedSix Months Ended
 May 2,May 3,May 2,May 3,
 2026202520262025
Revenue:  
Products$1,311,488 $898,581 $2,491,358 $1,753,366 
Services259,251 227,297 506,423 444,772 
Total revenue1,570,739 1,125,878 2,997,781 2,198,138 
Cost of goods sold:  
Products736,107 549,984 1,402,681 1,040,788 
Services143,078 123,056 278,026 232,691 
Total cost of goods sold879,185 673,040 1,680,707 1,273,479 
Gross profit691,554 452,838 1,317,074 924,659 
Operating expenses:  
Research and development237,905 214,868 459,363 407,531 
Selling and marketing150,039 139,683 298,906 276,187 
General and administrative61,221 56,952 120,464 110,854 
Significant asset impairments and restructuring costs805 1,948 2,303 3,492 
Amortization of intangible assets3,713 6,545 8,449 13,090 
Acquisition and integration costs — — 306 — 
Total operating expenses453,683 419,996 889,791 811,154 
Income from operations237,871 32,842 427,283 113,505 
Interest and other income, net14,111 7,871 27,068 19,449 
Interest expense(20,922)(21,697)(42,176)(44,615)
Loss on extinguishment and modification of debt— — — (729)
Income before income taxes231,060 19,016 412,175 87,610 
Provision for income taxes12,840 10,047 43,672 34,069 
Net income$218,220 $8,969 $368,503 $53,541 
Net Income per Common Share
Basic net income per common share$1.54 $0.06 $2.60 $0.38 
Diluted net income per potential common share $1.49 $0.06 $2.52 $0.37 
Weighted average basic common shares outstanding141,949 142,503 141,834 142,704 
Weighted average dilutive potential common shares outstanding1
146,314 144,972 146,078 145,470 

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) 4.4 million and 4.2 million for the second quarter and first six months ended fiscal 2026, respectively; and (ii) 2.5 million and 2.8 million for the second quarter and first six months ended fiscal 2025, respectively.

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CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
May 2,November 1,
20262025
ASSETS 
Current assets: 
Cash and cash equivalents$1,045,126 $1,091,952 
Short-term investments157,708 216,148 
Accounts receivable, net1,052,569 975,856 
Inventories, net808,447 826,235 
Prepaid expenses and other504,314 455,316 
Total current assets3,568,164 3,565,507 
Long-term investments200,106 57,142 
Equipment, building, furniture and fixtures, net445,082 386,779 
Operating lease right-of-use assets38,459 38,613 
Goodwill520,401 521,204 
Other intangible assets, net202,190 224,210 
Deferred tax asset, net873,979 884,889 
Other long-term assets191,068 186,323 
Total assets$6,039,449 $5,864,667 
LIABILITIES AND STOCKHOLDERS’ EQUITY 
Current liabilities: 
Accounts payable$606,599 $542,841 
Accrued liabilities and other short-term obligations439,626 531,081 
Deferred revenue238,380 208,936 
Operating lease liabilities12,396 13,956 
Current portion of long-term debt11,580 11,580 
Total current liabilities1,308,581 1,308,394 
Long-term deferred revenue102,107 94,850 
Other long-term obligations185,001 175,426 
Long-term operating lease liabilities31,996 32,516 
Long-term debt, net1,519,539 1,524,158 
Total liabilities3,147,224 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; 141,597,550 and 141,016,300 shares issued and outstanding
1,416 1,410 
Additional paid-in capital5,732,496 5,953,057 
Accumulated other comprehensive loss(40,081)(55,035)
Accumulated deficit(2,801,606)(3,170,109)
Total stockholders’ equity2,892,225 2,729,323 
Total liabilities and stockholders’ equity$6,039,449 $5,864,667 
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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
 May 2,May 3,
 20262025
Cash flows provided by operating activities: 
Net income$368,503 $53,541 
Adjustments to reconcile net income to net cash provided by operating activities: 
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements67,021 49,771 
Share-based compensation expense105,300 88,767 
Amortization of intangible assets22,020 17,555 
Deferred taxes(10,563)(10,470)
Provision for inventory excess and obsolescence42,481 23,431 
Provision for warranty16,685 10,714 
Other603 (6,355)
Changes in assets and liabilities: 
Accounts receivable(71,555)(20,857)
Inventories(24,690)(76,904)
Prepaid expenses and other(34,047)84,144 
Operating lease right-of-use assets5,349 5,580 
Accounts payable, accruals and other obligations(27,945)(16,755)
Deferred revenue35,442 66,493 
Short and long-term operating lease liabilities(7,257)(7,986)
Net cash provided by operating activities487,347 260,669 
Cash flows used in investing activities: 
Payments for equipment, furniture, and fixtures(114,933)(55,622)
Purchases of investments(226,731)(159,102)
Proceeds from sales and maturities of investments143,880 164,837 
Settlement of foreign currency forward contracts, net(31)2,441 
Net cash used in investing activities(197,815)(47,446)
Cash flows used in financing activities: 
Proceeds for modification of debt, net— 19,175 
Cash paid for extinguishment of debt— (19,175)
Payment of long term debt(5,790)(5,790)
Payment of debt issuance costs— (12)
Payment of finance lease obligations(2,371)(2,110)
Shares repurchased for tax withholdings on vesting of stock unit awards(179,420)(42,266)
Repurchases of common stock - repurchase program, net(164,920)(168,197)
Proceeds from issuance of common stock17,226 17,132 
Net cash used in financing activities(335,275)(201,243)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(1,093)2,937 
Net increase (decrease) in cash, cash equivalents and restricted cash(46,836)14,917 
Cash, cash equivalents and restricted cash at beginning of period1,092,197 935,026 
Cash, cash equivalents and restricted cash at end of period$1,045,361 $949,943 
Supplemental disclosure of cash flow information 
Cash paid during the period for interest, net$40,979 $43,200 
Cash paid during the period for income taxes, net$48,830 $55,466 
Operating lease payments$8,413 $8,812 
Non-cash investing and financing activities
Purchase of equipment in accounts payable$12,966 $12,545 
Repurchase of common stock in accrued liabilities from repurchase program, net$1,320 $2,023 
Operating right-of-use assets subject to lease liability $6,003 $16,351 
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APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements
(in thousands, except per share data) (unaudited)
Quarter Ended
May 2,May 3,
20262025
Gross Profit Reconciliation (GAAP/non-GAAP)
GAAP gross profit$691,554 $452,838 
Share-based compensation-products2,010 2,033 
Share-based compensation-services4,504 3,980 
Amortization of intangible assets6,787 2,232 
Total adjustments related to gross profit13,301 8,245 
Adjusted (non-GAAP) gross profit$704,855 $461,083 
Adjusted (non-GAAP) gross profit percentage44.9 %41.0 %
Operating Expense Reconciliation (GAAP/non-GAAP)
GAAP operating expense$453,683 $419,996 
Share-based compensation-research and development18,586 17,021 
Share-based compensation-sales and marketing16,486 13,649 
Share-based compensation-general and administrative13,887 11,341 
Significant asset impairments and restructuring costs805 1,948 
Amortization of intangible assets3,713 6,545 
Holdback arrangement2,411 — 
Total adjustments related to operating expense55,888 50,504 
Adjusted (non-GAAP) operating expense$397,795 $369,492 
Income from Operations Reconciliation (GAAP/non-GAAP)
GAAP income from operations$237,871 $32,842 
Total adjustments related to gross profit13,301 8,245 
Total adjustments related to operating expense55,888 50,504 
Total adjustments related to income from operations69,189 58,749 
Adjusted (non-GAAP) income from operations$307,060 $91,591 
Adjusted (non-GAAP) operating margin percentage19.5 %8.2 %
Net Income Reconciliation (GAAP/non-GAAP)
GAAP net income$218,220 $8,969 
Exclude GAAP provision for income taxes12,840 10,047 
Income before income taxes231,060 19,016 
Total adjustments related to income from operations69,189 58,749 
Adjusted income before income taxes300,249 77,765 
Non-GAAP tax provision on adjusted income before income taxes60,050 17,108 
Adjusted (non-GAAP) net income$240,199 $60,657 
Weighted average basic common shares outstanding141,949142,503
Weighted average dilutive potential common shares outstanding 1
146,314144,972
Net Income per Common Share
GAAP diluted net income per potential common share$1.49 $0.06 
Adjusted (non-GAAP) diluted net income per potential common share$1.64 $0.42 
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) 4.4 million for the second quarter ended fiscal 2026; and (ii) 2.5 million for the second quarter ended fiscal 2025.
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APPENDIX B - Calculation of EBITDA and Adjusted EBITDA
(in thousands) (unaudited)
Quarter Ended
May 2,May 3,
20262025
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Net income (GAAP)$218,220 $8,969 
Add: Interest expense20,922 21,697 
Less: Interest and other income, net14,111 7,871 
Add: Provision for income taxes12,840 10,047 
Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements34,712 25,092 
Add: Amortization of intangible assets10,500 8,777 
EBITDA$283,083 $66,711 
Add: Share-based compensation expense55,473 48,024 
Add: Significant asset impairments and restructuring costs805 1,948 
Add: Holdback arrangement2,411 — 
Adjusted EBITDA$341,772 $116,683 
* * *
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 primarily 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.
•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 second quarter of fiscal 2026 and 22% for the second 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.


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