Earnings release
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NEWS RELEASE Ciena Reports Fiscal Third Quarter 2026 Financial Results 2026-09-03 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 scal third quarter 2025 Providing revenue guidance for scal fourth quarter 2026 of $1.75 billion plus or minus $50 million Raising revenue guidance for scal year 2026 to $6.42 billion plus or minus $50 million, a 35% increase year- over-year at the midpoint FULTON, Md.--(BUSINESS WIRE)-- Ciena® Corporation (NYSE: CIEN) today announced nancial results for its scal third quarter ended August 1, 2026. "Today’s outstanding nancial 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 scal third quarter results re ect Ciena’s ability to deliver increasingly pro table growth while positioning for future opportunities,” said Marc Gra , Ciena’s Chief Financial O cer. “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
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Performance Summary for Fiscal Third Quarter Ended August 1, 2026 Revenue: $1.67 billion in the scal third quarter 2026, compared to $1.22 billion in the scal third quarter 2025 Net Income per diluted share: $1.83 GAAP and $2.11 adjusted (non-GAAP) for the scal third quarter 2026, compared to $0.35 and $0.67 for scal 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. GAAP Results (unaudited) Non-GAAP Results (unaudited) Quarter Ended Period Quarter Ended Period August 1, August 2, Change August 1, August 2, Change 2026 2025 Y-T-Y* 2026 2025 Y-T-Y* Revenue $ 1,671.1 $ 1,219.4 37.0% $ 1,671.1 $ 1,219.4 37.0% Gross margin 45.4% 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 margin 18.0% 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 scal 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 di er 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. 2
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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. Financial Performance by Segment Revenue by Segment (unaudited) Quarter Ended August 1, 2026 August 2, 2025 Revenue %** Revenue %** Networking Platforms Optical Networking $ 1,191.3 71.3 $ 815.5 66.9 Routing and Switching 164.4 9.8 125.9 10.3 Total Networking Platforms 1,355.7 81.1 941.4 77.2 Platform Software and Services 98.6 5.9 90.0 7.4 Blue Planet Automation Software and Services 23.2 1.4 27.8 2.3 Global Services Maintenance, Support, and Learning 89.8 5.4 80.7 6.6 Implementation 87.9 5.3 65.9 5.4 Advisory and Enablement 15.9 0.9 13.6 1.1 Total Global Services 193.6 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 scal third quarter 2026 results. Ciena's management will also host a discussion today with investors and nancial 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 3
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Investor Relations page of Ciena's website. 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") lings, recent news, nancial results, supplemental nancial 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 identi ed 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 nancial 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 scal third quarter results re ect Ciena’s ability to deliver increasingly pro table 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 di er materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena's business, including: the e ect of broader economic and market conditions on our business and that of our customers, including their spending; the development and use of arti cial 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 ful ll 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 tari s, duties or e orts 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 led with the 4
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Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K led with the SEC on December 12, 2025 and included in its Quarterly Report on Form 10-Q for the third quarter of scal 2026 to be led 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 pro t, 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 nancial measures should be considered in addition to Ciena's GAAP results and these measures are not intended to be a substitute for the nancial information prepared and presented in accordance with GAAP. Ciena's non-GAAP measures and the related adjustments may di er 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 nancial 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 e orts. 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 signi cance 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
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CIENA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Quarter Ended Nine Months Ended August 1, August 2, August 1, August 2, 2026 2025 2026 2025 Revenue: Products $ 1,390,274 $ 976,801 $ 3,881,632 $ 2,730,167 Services 280,855 242,584 787,278 687,356 Total revenue 1,671,129 1,219,385 4,668,910 3,417,523 Cost of goods sold: Products 768,661 580,028 2,171,342 1,620,816 Services 143,203 136,278 421,229 368,969 Total cost of goods sold 911,864 716,306 2,592,571 1,989,785 Gross pro t 759,265 503,079 2,076,339 1,427,738 Operating expenses: Research and development 236,673 211,898 696,036 619,429 Selling and marketing 153,969 148,724 452,875 424,911 General and administrative 62,844 60,596 183,308 171,450 Signi cant asset impairments and restructuring costs 887 1,770 3,190 5,262 Amortization of intangible assets 3,713 6,556 12,162 19,646 Acquisition and integration costs — — 306 — Total operating expenses 458,086 429,544 1,347,877 1,240,698 Income from operations 301,179 73,535 728,462 187,040 Interest and other income, net 22,388 15,090 49,456 34,539 Interest expense (5,803) (22,806) (47,979) (67,421) Loss on extinguishment and modi cation of debt (7,143) — (7,143) (729) Income before income taxes 310,621 65,819 722,796 153,429 Provision for income taxes 44,203 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 outstanding 142,061 141,846 142,229 142,437 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 rst nine months ended scal 2026, respectively; and (ii) 2.7 million for both the third quarter and rst nine months ended scal 2025. 6
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CIENA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (unaudited) August 1, November 1, 2026 2025 ASSETS Current assets: Cash and cash equivalents $2,445,708 $1,091,952 Short-term investments 184,293 216,148 Accounts receivable, net 1,233,610 975,856 Inventories, net 871,987 826,235 Prepaid expenses and other 527,014 455,316 Total current assets 5,262,612 3,565,507 Long-term investments 213,553 57,142 Equipment, building, furniture and xtures, net 491,656 386,779 Operating lease right-of-use assets 45,667 38,613 Goodwill 513,340 521,204 Other intangible assets, net 188,824 224,210 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 obligations 508,149 531,081 Deferred revenue 211,453 208,936 Operating lease liabilities 12,261 13,956 Current portion of long-term debt — 11,580 Total current liabilities 1,385,933 1,308,394 Long-term deferred revenue 99,828 94,850 Other long-term obligations 186,265 175,426 Long-term operating lease liabilities 38,633 32,516 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; 141,897,511 and 141,016,300 shares issued and outstanding 1,419 1,410 Additional paid-in capital 5,655,535 5,953,057 Accumulated other comprehensive loss (65,028) (55,035) Accumulated de cit (2,535,188) (3,170,109) Total stockholders’ equity 3,056,738 2,729,323 Total liabilities and stockholders’ equity $7,997,240 $5,864,667 7
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CIENA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Nine Months Ended August 1, August 2, 2026 2025 Cash ows 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 debt 7,143 159 Depreciation of equipment, building, furniture and xtures, and amortization of leasehold improvements 102,347 76,637 Share-based compensation expense 163,178 135,696 Amortization of intangible assets 35,386 26,343 Deferred taxes 49,266 (21,709) Provision for inventory excess and obsolescence 72,428 34,185 Provision for warranty 30,050 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 assets 7,956 8,759 Accounts payable, accruals and other obligations 66,956 83,354 Deferred revenue 6,764 38,246 Short and long-term operating lease liabilities (10,633) (11,868) Net cash provided by operating activities 683,606 435,016 Cash ows used in investing activities: Payments for equipment, furniture, and xtures (194,893) (95,373) Purchases of investments (325,629) (191,335) Proceeds from sales and maturities of investments 203,097 261,611 Settlement of foreign currency forward contracts, net 2,259 (2,635) Net cash used in investing activities (315,166) (27,732) Cash ows provided by (used in) nancing activities: Proceeds for modi cation 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 warrants 873,425 — Proceeds from issuance of convertible notes 2,875,000 — Payment of debt issuance costs (43,622) (12) Payment of nance 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 stock 38,025 35,874 Net cash provided by (used in) nancing activities 987,859 (286,145) E ect of exchange rate changes on cash, cash equivalents and restricted cash (2,554) 60 Net increase in cash, cash equivalents and restricted cash 1,353,745 121,199 Cash, cash equivalents and restricted cash at beginning of period 1,092,197 935,026 Cash, cash equivalents and restricted cash at end of period$2,445,942 $1,056,225 8
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Supplemental disclosure of cash ow information Cash paid during the period for interest, net$ 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 nancing 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 9
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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, 2026 2025 Gross Pro t Reconciliation (GAAP/non-GAAP) GAAP gross pro t $ 759,265 $ 503,079 Share-based compensation-products 2,175 2,027 Share-based compensation-services 4,666 3,942 Amortization of intangible assets 9,652 2,232 Total adjustments related to gross pro t 16,493 8,201 Adjusted (non-GAAP) gross pro t $ 775,758 $ 511,280 Adjusted (non-GAAP) gross pro t percentage 46.4% 41.9% Operating Expense Reconciliation (GAAP/non-GAAP) GAAP operating expense $ 458,086 $ 429,544 Share-based compensation-research and development 20,173 16,749 Share-based compensation-sales and marketing 16,623 13,277 Share-based compensation-general and administrative 14,241 11,008 Signi cant asset impairments and restructuring costs 887 1,770 Amortization of intangible assets 3,713 6,556 Holdback arrangement 2,419 — Total adjustments related to operating expense 58,056 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 pro t 16,493 8,201 Total adjustments related to operating expense 58,056 49,360 Total adjustments related to income from operations 74,549 57,561 Adjusted (non-GAAP) income from operations $ 375,728 $ 131,096 Adjusted (non-GAAP) operating margin percentage 22.5% 10.7% Net Income Reconciliation (GAAP/non-GAAP) GAAP net income $ 266,418 $ 50,308 Exclude GAAP provision for income taxes 44,203 15,511 Income before income taxes 310,621 65,819 Total adjustments related to income from operations 74,549 57,561 Loss on extinguishment of debt 7,143 — Gain on early termination of interest rate swaps (7,720) — Adjusted income before income taxes 384,593 123,380 Non-GAAP tax provision on adjusted income before income taxes 76,919 27,144 Adjusted (non-GAAP) net income $ 307,674 $ 96,236 Weighted average basic common shares outstanding 142,061 141,846 Weighted average dilutive potential common shares outstanding1 145,967 144,499 10
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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 scal 2026; and (ii) 2.7 million for the third quarter ended scal 2025. 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 income, net 22,388 15,090 Add: Loss on extinguishment of debt 7,143 — Add: Provision for income taxes 44,203 15,511 Add: Depreciation of equipment, building, furniture and xtures, and amortization of leasehold improvements 35,326 26,866 Add: Amortization of intangible assets 13,365 8,788 EBITDA $349,870 $109,189 Add: Share-based compensation expense 57,878 47,003 Add: Signi cant asset impairments and restructuring costs 887 1,770 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 re ect adjustments relating to the following items: Share-based compensation - a non-cash expense incurred in accordance with share-based compensation accounting guidance. Signi cant asset impairments and restructuring costs - non-recurring costs primarily re ecting 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 - re ects 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 bene ts. Loss on extinguishment of debt - re ects extinguishment expenses related to repayment of Ciena's term loan 11
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in connection with Ciena's convertible notes o ering during the third quarter of scal 2026. Gain on early termination of swaps - re ects the market value at settlement of Ciena's interest rate swaps designated as cash ow hedges which were terminated in parallel with the repayment of our re nanced 2030 term loan during the third quarter of scal 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 scal 2026 and 22% for the third quarter of scal 2025. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy. View source version on businesswire.com: https://www.businesswire.com/news/home/20260902113177/en/ Press Contact: Jamie Moody Ciena Corporation +1 (410) 694-5761 pr@ciena.com Investor Contact: Gregg Lampf Ciena Corporation +1 (410) 694-5700 ir@ciena.com Source: Ciena Corporation 12