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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.
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GAAP Results (unaudited)Non-GAAP Results (unaudited)
Quarter EndedPeriodQuarter EndedPeriod
August 1,August 2,ChangeAugust 1,August 2,Change
20262025Y-T-Y*20262025Y-T-Y*
Revenue$1,671.1 $1,219.4 37.0 %$1,671.1 $1,219.4 37.0 %
Gross margin45.4 %41.3 %4.1 %46.4 %41.9 %4.5 %
Operating expense$458.1 $429.5 6.6 %$400.0 $380.2 5.2 %
Operating margin18.0 %6.1 %11.9 %22.5 %10.7 %11.8 %
EBITDA$349.9 $109.2 220.4 %$411.1 $158.0 160.2 %
* 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.
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Financial Performance by Segment
Revenue by Segment (unaudited)
Quarter Ended
August 1, 2026August 2, 2025
Revenue%**Revenue%**
Networking Platforms
Optical Networking$1,191.3 71.3 $815.5 66.9 
Routing and Switching164.4 9.8 125.9 10.3 
Total Networking Platforms1,355.7 81.1 941.4 77.2 
Platform Software and Services98.6 5.9 90.0 7.4 
Blue Planet Automation Software and Services23.2 1.4 27.8 2.3 
Global Services
Maintenance, Support, and Learning89.8 5.4 80.7 6.6 
Implementation87.9 5.3 65.9 5.4 
Advisory and Enablement15.9 0.9 13.6 1.1 
Total Global Services193.6 11.6 160.2 13.1 
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.

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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 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 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 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.

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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.
 

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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter EndedNine Months Ended
August 1,August 2,August 1,August 2,
2026202520262025
Revenue:
Products$1,390,274 $976,801 $3,881,632 $2,730,167 
Services280,855 242,584 787,278 687,356 
Total revenue1,671,129 1,219,385 4,668,910 3,417,523 
Cost of goods sold:
Products768,661 580,028 2,171,342 1,620,816 
Services143,203 136,278 421,229 368,969 
Total cost of goods sold911,864 716,306 2,592,571 1,989,785 
Gross profit759,265 503,079 2,076,339 1,427,738 
Operating expenses:
Research and development236,673 211,898 696,036 619,429 
Selling and marketing153,969 148,724 452,875 424,911 
General and administrative62,844 60,596 183,308 171,450 
Significant asset impairments and restructuring costs887 1,770 3,190 5,262 
Amortization of intangible assets3,713 6,556 12,162 19,646 
Acquisition and integration costs — — 306 — 
Total operating expenses458,086 429,544 1,347,877 1,240,698 
Income from operations301,179 73,535 728,462 187,040 
Interest and other income, net22,388 15,090 49,456 34,539 
Interest expense(5,803)(22,806)(47,979)(67,421)
Loss on extinguishment and modification of debt(7,143)— (7,143)(729)
Income before income taxes310,621 65,819 722,796 153,429 
Provision for income taxes44,203 15,511 87,875 49,580 
Net income$266,418 $50,308 $634,921 $103,849 
Net Income per Common Share
Basic net income per common share$1.88 $0.35 $4.46 $0.73 
Diluted net income per potential common share $1.83 $0.35 $4.34 $0.72 
Weighted average basic common shares outstanding142,061 141,846 142,229 142,437 
Weighted average dilutive potential common shares outstanding1
145,967 144,499 146,227 145,158 

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.

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`CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
August 1,November 1,
20262025
ASSETS
Current assets:
Cash and cash equivalents$2,445,708 $1,091,952 
Short-term investments184,293 216,148 
Accounts receivable, net1,233,610 975,856 
Inventories, net871,987 826,235 
Prepaid expenses and other527,014 455,316 
Total current assets5,262,612 3,565,507 
Long-term investments213,553 57,142 
Equipment, building, furniture and fixtures, net491,656 386,779 
Operating lease right-of-use assets45,667 38,613 
Goodwill513,340 521,204 
Other intangible assets, net188,824 224,210 
Deferred tax asset, net1,092,726 884,889 
Other long-term assets188,862 186,323 
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 obligations508,149 531,081 
Deferred revenue211,453 208,936 
Operating lease liabilities12,261 13,956 
Current portion of long-term debt— 11,580 
Total current liabilities1,385,933 1,308,394 
Long-term deferred revenue99,828 94,850 
Other long-term obligations186,265 175,426 
Long-term operating lease liabilities38,633 32,516 
Long-term debt, net3,229,843 1,524,158 
Total liabilities4,940,502 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; 141,897,511 and 141,016,300 shares issued and outstanding
1,419 1,410 
Additional paid-in capital5,655,535 5,953,057 
Accumulated other comprehensive loss(65,028)(55,035)
Accumulated deficit(2,535,188)(3,170,109)
Total stockholders’ equity3,056,738 2,729,323 
Total liabilities and stockholders’ equity$7,997,240 $5,864,667 
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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended
August 1,August 2,
20262025
Cash flows provided by operating activities:
Net income$634,921 $103,849 
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on extinguishment of debt7,143 159 
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements102,347 76,637 
Share-based compensation expense163,178 135,696 
Amortization of intangible assets35,386 26,343 
Deferred taxes49,266 (21,709)
Provision for inventory excess and obsolescence72,428 34,185 
Provision for warranty30,050 16,302 
Other(724)(1,997)
Changes in assets and liabilities:
Accounts receivable(251,531)(116,887)
Inventories(118,334)(73,493)
Prepaid expenses and other(111,567)137,440 
Operating lease right-of-use assets7,956 8,759 
Accounts payable, accruals and other obligations66,956 83,354 
Deferred revenue6,764 38,246 
Short and long-term operating lease liabilities(10,633)(11,868)
Net cash provided by operating activities683,606 435,016 
Cash flows used in investing activities:
Payments for equipment, furniture, and fixtures(194,893)(95,373)
Purchases of investments(325,629)(191,335)
Proceeds from sales and maturities of investments203,097 261,611 
Settlement of foreign currency forward contracts, net2,259 (2,635)
Net cash used in investing activities(315,166)(27,732)
Cash flows provided by (used in) financing activities:
Proceeds for modification of debt, net— 19,175 
Cash paid for extinguishment of debt(1,140,930)(19,175)
Payment of long term debt(5,790)(8,685)
Payment for convertible bond hedge(988,425)— 
Proceeds from sale of warrants873,425 — 
Proceeds from issuance of convertible notes2,875,000 — 
Payment of debt issuance costs(43,622)(12)
Payment of finance lease obligations(3,572)(3,244)
Shares repurchased for tax withholdings on vesting of stock unit awards(278,338)(60,043)
Repurchases of common stock - repurchase program, net(337,914)(250,035)
Proceeds from issuance of common stock38,025 35,874 
Net cash provided by (used in) financing activities987,859 (286,145)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(2,554)60 
Net increase in cash, cash equivalents and restricted cash1,353,745 121,199 
Cash, cash equivalents and restricted cash at beginning of period1,092,197 935,026 
Cash, cash equivalents and restricted cash at end of period$2,445,942 $1,056,225 
Supplemental disclosure of cash flow information
Cash paid during the period for interest, net$58,712 $68,243 
Cash paid during the period for income taxes, net$84,583 $84,898 
Operating lease payments$12,383 $13,246 
Non-cash investing and financing activities
Purchase of equipment in accounts payable$24,987 $14,819 
Repurchase of common stock in accrued liabilities from repurchase program, net$— $2,231 
Operating right-of-use assets subject to lease liability $16,144 $21,850 
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APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements
(in thousands, except per share data) (unaudited)
Quarter Ended
August 1,August 2,
20262025
Gross Profit Reconciliation (GAAP/non-GAAP)
GAAP gross profit$759,265 $503,079 
Share-based compensation-products2,175 2,027 
Share-based compensation-services4,666 3,942 
Amortization of intangible assets9,652 2,232 
Total adjustments related to gross profit16,493 8,201 
Adjusted (non-GAAP) gross profit$775,758 $511,280 
Adjusted (non-GAAP) gross profit percentage46.4 %41.9 %
Operating Expense Reconciliation (GAAP/non-GAAP)
GAAP operating expense$458,086 $429,544 
Share-based compensation-research and development20,173 16,749 
Share-based compensation-sales and marketing16,623 13,277 
Share-based compensation-general and administrative14,241 11,008 
Significant asset impairments and restructuring costs887 1,770 
Amortization of intangible assets3,713 6,556 
Holdback arrangement2,419 — 
Total adjustments related to operating expense58,056 49,360 
Adjusted (non-GAAP) operating expense$400,030 $380,184 
Income from Operations Reconciliation (GAAP/non-GAAP)
GAAP income from operations$301,179 $73,535 
Total adjustments related to gross profit16,493 8,201 
Total adjustments related to operating expense58,056 49,360 
Total adjustments related to income from operations74,549 57,561 
Adjusted (non-GAAP) income from operations$375,728 $131,096 
Adjusted (non-GAAP) operating margin percentage22.5 %10.7 %
Net Income Reconciliation (GAAP/non-GAAP)
GAAP net income$266,418 $50,308 
Exclude GAAP provision for income taxes44,203 15,511 
Income before income taxes310,621 65,819 
Total adjustments related to income from operations74,549 57,561 
Loss on extinguishment of debt7,143 — 
Gain on early termination of interest rate swaps(7,720)— 
Adjusted income before income taxes384,593 123,380 
Non-GAAP tax provision on adjusted income before income taxes76,919 27,144 
Adjusted (non-GAAP) net income$307,674 $96,236 
Weighted average basic common shares outstanding142,061141,846
Weighted average dilutive potential common shares outstanding 1
145,967144,499
Net Income per Common Share
GAAP diluted net income per potential common share$1.83 $0.35 
Adjusted (non-GAAP) diluted net income per potential common share$2.11 $0.67 
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.
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APPENDIX B - Calculation of EBITDA and Adjusted EBITDA
(in thousands) (unaudited)
Quarter Ended
August 1,August 2,
20262025
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Net income (GAAP)$266,418 $50,308 
Add: Interest expense5,803 22,806 
Less: Interest and other income, net22,388 15,090 
Add: Loss on extinguishment of debt7,143 — 
Add: Provision for income taxes44,203 15,511 
Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements35,326 26,866 
Add: Amortization of intangible assets13,365 8,788 
EBITDA$349,870 $109,189 
Add: Share-based compensation expense57,878 47,003 
Add: Significant asset impairments and restructuring costs887 1,770 
Add: Holdback arrangement2,419 — 
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 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.
•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.


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