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Ciena (NYSE: CIEN) posts 40% Q2 revenue growth and lifts 2026 outlook

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Ciena Corporation reported very strong fiscal second quarter 2026 results, showing sharp growth in revenue, profits, and margins. Revenue rose to $1.57 billion from $1.13 billion a year earlier, a 39.5% increase, driven largely by optical networking and cloud provider demand.

GAAP diluted EPS jumped to $1.49 from $0.06, while adjusted EPS increased to $1.64 from $0.42, reflecting higher gross margin and operating leverage. Adjusted operating margin improved to 19.5% from 8.2%, and EBITDA grew more than fourfold to $283.1 million.

Ciena raised its full-year 2026 revenue outlook to $6.3 billion plus or minus $100 million, implying 32% year-over-year growth at the midpoint, and guided fiscal third quarter 2026 revenue to $1.625 billion plus or minus $50 million, with adjusted gross margin around 45% and adjusted operating margin between 19% and 20%.

Positive

  • Exceptional revenue and earnings growth: Fiscal Q2 2026 revenue rose 39.5% year over year to $1.57 billion, GAAP diluted EPS increased from $0.06 to $1.49, and adjusted EPS rose from $0.42 to $1.64, indicating a major improvement in profitability.
  • Significant margin and cash flow expansion: Adjusted gross margin improved to 44.9% and adjusted operating margin to 19.5%, while free cash flow reached $219 million, up 71% year over year, strengthening financial flexibility.
  • Raised full-year outlook: Ciena increased its fiscal 2026 revenue guidance to $6.3 billion plus or minus $100 million, implying 32% year-over-year growth at the midpoint, alongside targeted adjusted operating margin around 19%.

Negative

  • None.

Insights

Ciena posts very strong Q2 growth, margin expansion, and raises 2026 guidance.

Ciena delivered fiscal Q2 2026 revenue of $1.57 billion, up 39.5% year over year, with GAAP diluted EPS rising to $1.49 and adjusted EPS to $1.64. Adjusted gross margin reached 44.9% and adjusted operating margin 19.5%, showing substantial operating leverage.

Adjusted EBITDA almost tripled to $341.8 million, while cash and investments were about $1.4 billion as of May 2, 2026. The company also generated significantly higher free cash flow of $219 million in the quarter and continued buybacks, repurchasing $83.1 million of stock.

Management raised full‑year 2026 revenue guidance to $6.3 billion plus or minus $100 million, and guided fiscal Q3 revenue to $1.625 billion plus or minus $50 million, with adjusted operating margin around 19–20%. Future disclosures in company filings may provide how AI‑driven demand and cloud provider capex trends track against these targets.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $1.57 billion Fiscal second quarter 2026, up 39.5% year over year
Q2 2026 GAAP diluted EPS $1.49 per share Fiscal second quarter 2026 vs $0.06 in Q2 2025
Q2 2026 adjusted EPS $1.64 per share Fiscal second quarter 2026 vs $0.42 in Q2 2025
Adjusted operating margin 19.5% Fiscal second quarter 2026 vs 8.2% in Q2 2025
Adjusted EBITDA $341.8 million Fiscal second quarter 2026 vs $116.7 million in Q2 2025
FY 2026 revenue guidance $6.3 billion ± $100 million Full-year fiscal 2026 outlook, 32% YoY increase at midpoint
Q3 2026 revenue guidance $1.625 billion ± $50 million Fiscal third quarter 2026 outlook
Q2 2026 free cash flow $219 million Fiscal second quarter 2026, up 71% year over year
Adjusted (non-GAAP) operating margin financial
"Adjusted (non-GAAP) operating margin percentage | 19.5 % | | 8.2 %"
EBITDA financial
"EBITDA | | $ | 283.1 | | | $ | 66.7 | | | 324.4 | %"
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
free cash flow financial
"• Free cash flow: $219M, up 71% YoY"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
share-based compensation financial
"•Share-based compensation - a non-cash expense incurred in accordance with share-based compensation accounting guidance."
Share-based compensation is when a company pays employees, executives or directors with its own stock or rights to buy stock instead of, or in addition to, cash. Think of it like receiving store gift cards instead of extra paycheck — it can motivate staff to boost the company’s value, but it also increases the number of shares outstanding and can shrink each existing owner’s slice of profits and voting power. Investors watch it because it affects reported earnings, share count and the alignment between management and shareholders.
holdback arrangement financial
"•Holdback arrangement - reflects a one-time holdback of a portion of the merger consideration otherwise payable at closing"
Data center interconnect technical
"Data center interconnect The optical connections that link data centers to each other"
A data center interconnect is the network of high-capacity links that connects separate data centers so they can share files, run services together, and back each other up. Think of it as a set of highways between warehouses — it affects how fast and reliably users get services, how easily companies scale or move workloads, and how costly or risky a provider’s operations are, so it can materially influence revenue, expenses and customer trust.
Revenue $1.57 billion +39.5% YoY
GAAP diluted EPS $1.49 vs $0.06 in Q2 2025
Adjusted EPS $1.64 vs $0.42 in Q2 2025
Adjusted operating margin 19.5% vs 8.2% in Q2 2025
Guidance

For fiscal Q3 2026, Ciena guides revenue to $1.625 billion plus or minus $50 million, with adjusted gross margin around 45% and adjusted operating margin between 19% and 20%. For full-year 2026, it targets revenue of $6.3 billion plus or minus $100 million and adjusted operating margin near 19%.

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0000936395false00009363952026-06-042026-06-04


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): June 4, 2026
Ciena Corporation
(Exact name of registrant as specified in its charter)
Commission File Number: 001-36250



Delaware
(State or other jurisdiction of incorporation)
7035 Ridge Road, Hanover, MD
(Address of principal executive offices)


23-2725311
(IRS Employer Identification No.)
21076
(Zip Code)
Registrant's telephone number, including area code: (410) 694-5700

Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, $0.01 par value
CIEN
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition.
On June 4, 2026, Ciena Corporation ("Ciena") issued a press release announcing its financial results for its fiscal second quarter ended May 2, 2026. The text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this "Report"). As discussed in the press release, Ciena will be hosting an investor call to discuss its results of operations for its fiscal second quarter ended May 2, 2026.

In conjunction with the issuance of this press release, Ciena posted to the quarterly results page of the "Investors" section of www.ciena.com an accompanying investor presentation. The investor presentation is furnished as Exhibit 99.2 to this Report.

The information in Exhibits 99.1 and 99.2, as well as Item 2.02 of this Report, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended. Investors are encouraged to review the “Investors” page of our website at www.ciena.com because, as with the other disclosure channels that we use, from time to time we may post material information exclusively on that site.

Item 9.01 Financial Statements and Exhibits.
Exhibit Number
Description of Document
99.1
Text of Press Release dated June 4, 2026, issued by Ciena Corporation, reporting its results of operations for its fiscal second quarter ended May 2, 2026.

99.2
Investor Presentation for Ciena Corporation's fiscal second quarter ended May 2, 2026.

104
Cover Page Interactive Data File (embedded within the Inline XBRL document).



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
    



Ciena Corporation
Date: June 4 2026
By:
/s/ Sheela Kosaraju
Sheela Kosaraju
Senior Vice President, General Counsel and Assistant Secretary



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.
1

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.
2

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.

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 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.
4


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)
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.

6

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 
7

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 
8

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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© Ciena Corporation 2026. All rights reserved. Proprietary Information. Ciena Corporation Fiscal Q2 2026 Earnings Presentation Period ended May 2, 2026 June 4, 2026

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.2 Forward-looking statements and non-GAAP measures 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. Information in this presentation and related comments of presenters 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. 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. All information, statements, and projections in this presentation and the related earnings call speak only as of the date of this presentation and related earnings call. Ciena assumes no obligation to update any forward-looking or other information included in this presentation or related earnings calls, whether as a result of new information, future events or otherwise. In addition, this presentation includes historical, and may include prospective, non-GAAP measures of Ciena’s gross margin, operating expense, operating margin, EBITDA, and net income per share. These measures are not intended to be a substitute for financial information presented in accordance with GAAP. A reconciliation of non-GAAP measures used in this presentation to Ciena’s GAAP results for the relevant period can be found in the Appendix to this presentation. Additional information can also be found in our press release filed this morning and in our reports on Form 10-Q and Form 10-K filed with the Securities and Exchange Commission. With respect to Ciena’s expectations under “Business Outlook", 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 Corporation 2026. All rights reserved. Proprietary Information.3 Table of Contents 1. Introduction to Ciena 2. Fiscal Q2 2026 financial performance 3. Fiscal Q3 and full-year 2026 outlook 4. Appendix

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.4 Executive Summary AI requires more optical networking. More optical networking requires Ciena Q2 2026 results demonstrate sustained growth and operational discipline Delivered record revenue and backlog, strong profitability DCI, including scale-across, is gaining momentum as customers connect AI data centers to monetize their investments Demand is outstripping supply, resulting in multi-year visibility and longer lead times We were awarded the industry's first multi-rail opportunity using Ciena's RLS Hyper-Rail solution to connect training data centers over distance

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information. Introduction to Ciena

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.6 Ciena has global network reach and scale *Based on FYE2025 ** Market share measures as of Q1 2026 exclude China Scale and reach Recognized leadershipStrategic focus $4.8B FY2025 Revenue 19% YoY growth 9,000+ Employees* Including 4,500+ R&D specialists 80+ Countries* Customers on six continents 1,700+ Customers* Worldwide #1 in Data Center Interconnect** Dell'Oro Group #1 in Total Optical Networking** Cignal AI, Dell'Oro, Omdia #1 in Submarine Networks** Cignal AI, Omdia

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.7 Data generation and bandwidth are continuing to grow The size and scale of AI-driven investments are resulting in sustained high bandwidth growth 0 5 10 15 20 25 '23 '24 '25 '26 '27 '28 '29 ZB Data Moved by SPs +15% CAGR ‘25-’29 User consumption bandwidth is growing at lower rate than the AI “factory” Source: Omdia, AI Network Traffic Forecast 2023–35, Feb 2026 Note: “This forecast restricts traffic growth estimates to data transiting across a network operated by a service provider.” 2026 Forecast 2025 Network Bandwidth +36% CAGR ‘25-’29 Growth is similar to data center …but 1/50th of capacity Source: Cignal AI, Optical Components Report, Feb 2026 0.0 0.5 1.0 1.5 2.0 '23 '24 '25 '26 '27 '28 '29 Eb/s 2024 2026 Forecast 2025 Data Center Bandwidth +35% CAGR ‘25-’29 Actual growth is significantly higher than forecasted Source: Cignal AI, Optical Components Report, Feb 2026 0 20 40 60 80 100 '23 '24 '25 '26 '27 '28 '29 Eb/s 2024 2025 2026 Forecast X2 X2 0 100 200 300 400 500 600 '23 '24 '25 '26 '27 '28 '29 ZB Global Data Generation +25% CAGR ’25-’29 2026 forecast growing faster than historical trend Source: Worldwide IDC Global DataSphere Forecast, 2025-2029, Doc#US53363625 2023 2026 Forecast

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.8 Cloud Providers are the drivers of industry change Cloud Providers (CP) – and especially the Hyperscalers – are funding an unprecedented scale of investment Sources: Company earnings, analyst projections, 2030 projections from Dell’Oro Group, and Ciena internal analysis The forecasted range of Cloud Provider CapEx is far exceeding previous estimates Cloud Provider spend has been higher than forecastedCloud Provider CapEx forecast is accelerating rapidly Forecasts have consistently underestimated Cloud Providers' CapEx Sources: Company earnings for actuals, various analysts for forecasts 0 100 200 300 400 500 600 700 2022 2023 2024 2025 2026 $B ChatGPT Launched Actual Spend Previous year’s forecast

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.9 Ciena is the leader in high-speed connectivity Our strategic investments are extending to in-and-around the data center, leveraging our strengths to expand our footprint Our core optical strength is the foundation for our portfolio expansion

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information. Q2 FY 2026 results

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.11 Ciena's differentiated position in AI is driving record performance ▪ Revenue: $1.6B, up 40% YoY • Cloud provider revenue: 46% of total, up 70% YoY • RLS and Waveserver revenue each grew more than 50% YoY • India revenue more than doubled YoY, driven by MOFN • WL6 Extreme: 110 customers, +20 new in Q2 • Awarded the industry's first hyperscaler multi-rail opportunity with RLS Hyper-Rail, reinforcing Ciena's technology leadership in AI infrastructure solutions • Adj. gross margin: 44.9%, up +390bps YoY • Adj. operating margin: 19.5%, up +1,130bps YoY • Free cash flow: $219M, up 71% YoY • Repurchased $83M in Q2; ~$493M returned under the $1B program Achieving broad-based growth Prioritizing long-term shareholder value Driving the pace of innovation

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.12 Q2 FY 2026 comparative financial highlights * Reconciliations of these non-GAAP measures to our GAAP results are included in the Appendix and in the press release for the relative period. ** Denotes % change, or in the case of margin, absolute change GAAP Results Q2 FY2025 Q1 FY2026 Q2 FY2026 YoY Change** Revenue $1.13B $1.43B $1.57B 40% Gross Margin 40.2% 43.8% 44.0% 380 bps Operating Expense $420M $436M $454M 8% Operating Margin 2.9% 13.3% 15.1% 1,220 bps EBITDA $67M $233M $283M 324% Fully Diluted EPS $0.06 $1.03 $1.49 2383% Non-GAAP Results Q2 FY2025 Q1 FY2026 Q2 FY2026 YoY Change** Revenue $1.13B $1.43B $1.57B 40% Adjusted Gross Margin* 41.0% 44.7% 44.9% 390 bps Adjusted Operating Expense* $370M $383M $398M 8% Adjusted Operating Margin* 8.2% 17.9% 19.5% 1,130 bps Adjusted EBITDA* $117M $287M $342M 193% Adjusted EPS* $0.42 $1.35 $1.64 290%

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.13 Q2 FY 2026 comparative operating metrics Q2 FY 2025 Q2 FY 2026 YoY Change* Cash and investments $1.3B $1.4B 8% Cash provided by operations $157M $260M 66% Free cash flow $128M $219M 71% DSO 87 71 (16) Inventory turns 2.5x 3.6x 1.1x Net debt $253M $138M (45)% Gross leverage 3.2x 1.6x (1.6)x * Denotes % change, or in the case of DSO, inventory turns, and gross leverage, absolute change

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information. Business outlook

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.15 Key assumptions underlying our outlook AI infrastructure investment: Cloud providers continue to increase capital expenditure on AI data center buildout at levels consistent with recent public commitments. Supply chain: Global supply of optical components and substrates remains broadly stable, with no material disruptions to our ability to fulfill customer orders. Trade and tariff policy: No material change to current US and international tariff and trade policy affecting our products or our customers’ purchasing decisions. Foreign exchange: Currency exchange rates remain broadly consistent with levels prevailing at the time of this report. For additional considerations relating to our outlook, please refer to our note about forward looking statements on Slide 2 and the risk factors disclosed in Ciena's periodic reports filed with the Securities and Exchange Commission.

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.16 Business outlook for fiscal Q3 and full-year 20261 1 Projections or outlook with respect to future operating results are only as of June 4, 2026, the date presented on the related earnings call. Actual results may differ materially from these forward-looking statements. Ciena assumes no obligation to update this information, whether as a result of new information, future events or otherwise. Fiscal Q3 2026 Fiscal FY 2026 Revenue $1.625B plus or minus $50M $6.3B plus or minus $100M Adjusted Gross Margin 45.0% plus or minus 50 bps 44.5% to 45.0% Adjusted Operating Expense $410M plus or minus $10M $1.61B plus or minus $20M Adjusted Operating Margin 19% to 20% 19% plus or minus 50 bps

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information. Q2 FY 2026 appendix

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.18 Glossary of terms Term Definition Coherent optics A technology for sending data over fiber optic cables using light waves — faster and more efficient than traditional methods at long distances WaveLogic Ciena’s proprietary family of coherent optical chips — the core technology inside most of our networking products Data center interconnect The optical connections that link data centers to each other — the fastest-growing segment of the optical networking market RLS (reconfigurable line system) Optical network hardware that can be remotely reconfigured without physically sending a technician on-site RLS Hyper-Rail Ciena's 2nd generation intelligent photonic line systems designed to support multiple fiber pairs—or rails—in parallel. Multi-rail systems are optimized for deploying multiple fibers over the same route, with each rail functioning as a high-capacity optical highway with dedicated amplification, monitoring, and control. DCOM Direct optical connections between compute chips inside an AI data center — replacing copper cables with fiber 400G / 800G / 1.6T Shorthand for data transmission speeds: 400, 800, or 1,600 gigabits per second — each generation roughly doubles the capacity of the previous Scale-across Connects distributed AI training clusters across multiple data centers. Enables hyperscalers to operate geographically separated GPU fabrics as a single system, delivering the bandwidth, latency, and reliability required for large-scale AI training.

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.19 Revenue by segment * Reconciliations of these non-GAAP measures to GAAP results are included in this presentation. ** Denotes % of total revenue

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.20 Revenue by customer type

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.21 Revenue by geographic region 9% 9% 8% 17% 15% 14% 74% 76% 78% 78% 14% 8% 11% 12% 77%

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.22 Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 GAAP gross profit $691,554 $625,520 $577,179 $503,079 $452,838 Share-based compensation-products 2,010 1,822 1,964 2,027 2,033 Share-based compensation-services 4,504 4,025 3,857 3,942 3,980 Amortization of intangible assets 6,787 6,785 3,750 2,232 2,232 Total adjustments related to gross profit 13,301 12,632 9,571 8,201 8,245 Adjusted (non-GAAP) gross profit $704,855 $638,152 $586,750 $511,280 $461,083 Adjusted (non-GAAP) gross profit percentage 44.9 % 44.7 % 43.4 % 41.9 % 41.0 % Gross Profit Reconciliation (Amounts in thousands)

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.23 Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 GAAP operating expense $453,683 $436,108 $566,688 $429,544 $419,996 Share-based compensation-research and development 18,586 16,594 16,274 16,749 17,021 Share-based compensation-sales and marketing 16,486 14,754 13,543 13,277 13,649 Share-based compensation-general and administrative 13,887 12,632 13,248 11,008 11,341 Significant asset impairments and restructuring costs 805 1,498 106,851 1,770 1,948 Amortization of intangible assets 3,713 4,736 6,112 6,556 6,545 Acquisition and integration costs — 306 1,148 — — Holdback arrangement 2,411 2,403 802 — — Total adjustments related to operating expense 55,888 52,923 157,978 49,360 50,504 Adjusted (non-GAAP) operating expense $397,795 $383,185 $408,710 $380,184 $369,492 Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 GAAP income from operations $237,871 $189,412 $10,491 $73,535 $32,842 Total adjustments related to gross profit 13,301 12,632 9,571 8,201 8,245 Total adjustments related to operating expense 55,888 52,923 157,978 49,360 50,504 Total adjustments related to income from operations 69,189 65,555 167,549 57,561 58,749 Adjusted (non-GAAP) income from operations $307,060 $254,967 $178,040 $131,096 $91,591 Adjusted (non-GAAP) operating margin percentage 19.5 % 17.9 % 13.2 % 10.7 % 8.2 % Operating Expense Reconciliation (Amounts in thousands) Income from Operations Reconciliation (Amounts in thousands)

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.24 Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 GAAP net income $218,220 $150,283 $19,489 $50,308 $8,969 Exclude GAAP provision (benefit) for income taxes 12,840 30,832 (16,631) 15,511 10,047 Income before income taxes 231,060 181,115 2,858 65,819 19,016 Total adjustments related to income from operations 69,189 65,555 167,549 57,561 58,749 Adjusted income before income taxes 300,249 246,670 170,407 123,380 77,765 Non-GAAP tax provision on adjusted income before income taxes 60,050 49,334 37,490 27,144 17,108 Adjusted (non-GAAP) net income $240,199 $197,336 $132,917 $96,236 $60,657 Weighted average basic common shares outstanding 141,949 141,676 141,527 141,846 142,503 Weighted average diluted potential common shares outstanding(1) 146,314 145,799 145,470 144,499 144,972 Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 GAAP diluted net income per potential common share $ 1.49 $ 1.03 $ 0.13 $ 0.35 $ 0.06 Adjusted (non-GAAP) diluted net income per potential common share $ 1.64 $ 1.35 $ 0.91 $ 0.67 $ 0.42 (1) Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share for the second quarter ended fiscal 2026 includes 4.4 million shares underlying certain stock option and stock unit awards. Net Income Reconciliation (Amounts in thousands) Net Income per Common Share

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.25 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 Net income (GAAP) $218,220 $150,283 $19,489 $50,308 $8,969 Add: Interest expense 20,922 21,254 21,982 22,806 21,697 Less: Interest and other income, net 14,111 12,957 14,349 15,090 7,871 Add: Provision (benefit) for income taxes 12,840 30,832 (16,631) 15,511 10,047 Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements 34,712 32,309 27,496 26,866 25,092 Add: Amortization of intangible assets 10,500 11,521 9,862 8,788 8,777 EBITDA $283,083 $233,242 $47,849 $109,189 $66,711 Add: Share-based compensation expense 55,473 49,827 48,886 47,003 48,024 Add: Significant asset impairments and restructuring expense 805 1,498 106,851 1,770 1,948 Add: Acquisition and integration costs — 306 1,148 — — Add: Holdback arrangement 2,411 2,403 802 — — Adjusted EBITDA $341,772 $287,276 $205,536 $157,962 $116,683 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) (Amounts in thousands)

 

Source: View Original Filing on SEC EDGAR

FAQ

How did Ciena (CIEN) perform in fiscal Q2 2026?

Ciena delivered very strong fiscal Q2 2026 results with revenue of $1.57 billion, up 39.5% year over year. GAAP diluted EPS climbed to $1.49, and adjusted EPS reached $1.64, reflecting higher gross margins and strong operating leverage across the business.

What were Ciena’s key profitability metrics for fiscal Q2 2026?

Profitability improved sharply. Adjusted gross margin was 44.9% versus 41.0% a year earlier, and adjusted operating margin rose to 19.5% from 8.2%. EBITDA increased to $283.1 million, with adjusted EBITDA at $341.8 million, indicating substantial earnings expansion.

What guidance did Ciena (CIEN) provide for fiscal Q3 2026?

For fiscal Q3 2026, Ciena expects revenue of $1.625 billion plus or minus $50 million. The company targets adjusted gross margin around 45% plus or minus 50 basis points and adjusted operating margin between 19% and 20%, signaling expectations for continued strong profitability.

What is Ciena’s full-year fiscal 2026 revenue outlook?

Ciena raised its full-year fiscal 2026 revenue outlook to $6.3 billion plus or minus $100 million. At the midpoint, this implies approximately 32% year-over-year growth, supported by strong demand for high-speed connectivity solutions and AI-related networking investments.

How strong was Ciena’s cash flow and balance sheet in Q2 2026?

Ciena generated $260 million of cash from operations and $219 million of free cash flow in Q2 2026. Cash and investments totaled about $1.4 billion as of May 2, 2026, and the company repurchased $83.1 million of stock under its $1 billion program.

How is Ciena’s non-GAAP performance different from GAAP in Q2 2026?

Non-GAAP results exclude items like share-based compensation, amortization, restructuring costs, and certain transaction-related amounts. In Q2 2026, this led to higher adjusted gross margin of 44.9%, adjusted operating margin of 19.5%, and adjusted EPS of $1.64 versus GAAP diluted EPS of $1.49.

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