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Ciena Q3 revenue jumps 37% on AI demand

Ciena posts record Q3 2026 results with 37% revenue growth, sharply higher margins, and raises full-year revenue guidance on AI-driven demand.

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

Rhea-AI Filing Summary

Ciena Corporation (CIEN) reported a record fiscal third quarter 2026, with strong growth across revenue, profitability, and cash. Revenue was $1.67 billion, up 37% year-over-year, driven by networking platforms and accelerating AI-related demand. GAAP diluted EPS rose to $1.83 from $0.35, while adjusted EPS increased to $2.11, up 215%.

Adjusted gross margin improved to 46.4% from 41.9%, and adjusted operating margin more than doubled to 22.5% from 10.7%. EBITDA was $349.9 million, with adjusted EBITDA of $411.1 million, up 160%. Cash and investments reached $2.8 billion, and Ciena repurchased about 0.4 million shares for $171.7 million under its $1 billion buyback program.

Guidance was raised on the back of AI-driven demand and strong cloud-provider momentum. Ciena now guides fiscal 2026 revenue to $6.42 billion ± $50 million, a 35% year-over-year increase at the midpoint, and expects fiscal Q4 2026 revenue of $1.75 billion ± $50 million with adjusted gross margin around 45% and adjusted operating margin around 20%. The company also completed a $2.875 billion 0.0% coupon convertible notes offering, which it states lowers overall interest expense and enhances financial flexibility.

Positive

  • Revenue grew 37% year-over-year to $1.67 billion, reflecting strong demand, particularly from cloud providers and AI-related networking.
  • Profitability improved sharply, with adjusted operating margin rising to 22.5% from 10.7% and adjusted EPS increasing 215% to $2.11.
  • Ciena raised fiscal 2026 revenue guidance to $6.42 billion ± $50 million, indicating a 35% year-over-year increase at the midpoint.
  • Cash and investments reached $2.8 billion, and a $2.875 billion 0.0% coupon convertible notes deal is described as lowering interest expense and enhancing financial flexibility.
  • Cloud provider revenue represented 53% of total revenue and grew 82% year-over-year, underscoring Ciena’s position in AI-driven infrastructure.

Negative

  • None.

Insights

Analyzing...

Filing Explained

Ciena’s preliminary fiscal 2027 outlook depends on AI spending and supply stability, while supplier agreements add longer-term procurement commitments.

Ciena furnished an early fiscal 2027 outlook with expected revenue growth of at least 30%, adjusted gross margin of 45% to 46%, and adjusted operating margin of 25% to 27%. The presentation also says the company has entered into long-term supplier agreements, creating longer-term procurement commitments.

Form 8-K reports specified material events; this filing uses Item 2.02 to disclose operating results and furnish related earnings materials. The fiscal 2027 view is expressly an early outlook rather than reported performance, so its current state is planning guidance.

The outlook depends on continued cloud-provider investment in AI infrastructure, broadly stable optical-component and substrate supply, no material tariff or trade-policy change, and generally consistent foreign-exchange rates. The filing also says two customers each represented more than 10% of quarterly revenue and together accounted for 41.7%, identifying a disclosed concentration in the reported business.

These assumptions and the supplier agreements are the main items to monitor in later quarterly filings: they will show whether the stated demand and supply conditions persist and how the commitments affect reported operations.

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, or exhibit attachments filed with this report.
Q3 2026 Revenue $1.67 billion Fiscal third quarter 2026 revenue, up 37% year-over-year from $1.22 billion
Q3 2026 GAAP diluted EPS $1.83 Fiscal third quarter 2026 diluted net income per potential common share vs $0.35 in Q3 2025
Q3 2026 Adjusted EPS $2.11 Adjusted (non-GAAP) diluted EPS for fiscal third quarter 2026 vs $0.67 in Q3 2025
Adjusted Gross Margin 46.4% Non-GAAP gross margin for fiscal third quarter 2026, up from 41.9% a year earlier
Adjusted Operating Margin 22.5% Non-GAAP operating margin for fiscal third quarter 2026, up from 10.7% in Q3 2025
Convertible Notes Offering $2.875 billion Principal amount of 0.0% coupon convertible notes issued in fiscal third quarter 2026
Share Repurchases Q3 2026 $171.7 million Aggregate price to repurchase approximately 0.4 million shares under $1 billion program
Fiscal 2026 Revenue Guidance $6.42 billion ± $50 million Raised full-year fiscal 2026 revenue outlook, 35% year-over-year growth at midpoint
Adjusted (non-GAAP) gross margin financial
"Adjusted (non-GAAP) gross margin in the range of 45% plus or minus 50 bps"
EBITDA financial
"Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)"
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.
coherent optics technical
"Coherent optics A technology for sending data over fiber optic cables"
Coherent optics is a technology that uses precise control of light signals to transmit large amounts of data quickly and reliably over long distances. It works like a highly accurate communication system, allowing information to be sent with minimal errors. For investors, it matters because advancements in coherent optics can lead to faster internet connections and better data networks, supporting the growth of digital services and technology industries.
Data center interconnect technical
"Data center interconnect The optical connections that link data centers"
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.
convertible notes financial
"Proceeds from issuance of convertible notes"
Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.
loss on extinguishment of debt financial
"Loss on extinguishment of debt reflects extinguishment expenses related to repayment"
Loss on extinguishment of debt is the accounting hit a company records when it retires or restructures a loan or bond for an amount that exceeds the debt’s recorded value—like paying more than the remaining balance to settle a loan early. It matters to investors because it reduces reported profit and can use cash, but may also cut future interest costs or signal financial stress; understanding it helps assess earnings quality and balance-sheet strength.
Revenue $1.67 billion Up 37% year-over-year from $1.22 billion
GAAP diluted EPS $1.83 Increased from $0.35 in fiscal third quarter 2025
Adjusted diluted EPS $2.11 Up 215% from $0.67 in fiscal third quarter 2025
Adjusted gross margin 46.4% Improved from 41.9% in the prior-year quarter
Adjusted operating margin 22.5% Increased from 10.7% in fiscal third quarter 2025
Adjusted EBITDA $411.1 million Up 160% from $158.0 million in fiscal third quarter 2025
Q4 2026 revenue guidance $1.75 billion ± $50 million Outlook for next quarter revenue range
Guidance

Ciena expects fiscal Q4 2026 revenue of $1.75 billion plus or minus $50 million, adjusted gross margin around 45% plus or minus 50 bps, adjusted operating expense of $415 million plus or minus $10 million, and adjusted operating margin around 20% plus or minus 50 bps. Fiscal 2026 revenue guidance is $6.42 billion plus or minus $50 million.

FAQ

How did Ciena (CIEN) perform financially in fiscal Q3 2026?
Ciena reported Q3 2026 revenue of $1.67 billion, up 37% year-over-year. GAAP diluted EPS was $1.83 versus $0.35 a year earlier, and adjusted EPS was $2.11 versus $0.67, reflecting higher margins and strong operating leverage.

What guidance did Ciena (CIEN) provide for fiscal Q4 2026?
For fiscal Q4 2026, Ciena expects revenue of $1.75 billion plus or minus $50 million, adjusted gross margin of 45% plus or minus 50 bps, adjusted operating expense of $415 million plus or minus $10 million, and adjusted operating margin of 20% plus or minus 50 bps.

What is Ciena’s (CIEN) full-year fiscal 2026 revenue outlook?
Ciena raised its fiscal 2026 revenue outlook to $6.42 billion plus or minus $50 million, which represents a 35% year-over-year increase at the midpoint, supported by growing AI-related networking demand and strong cloud provider spending.

What were Ciena’s (CIEN) key cash and balance sheet metrics in Q3 2026?
Ciena reported cash and investments of $2.8 billion and net cash provided by operating activities of $683.6 million for the first nine months of fiscal 2026. Net debt was $431 million, and cash, cash equivalents and restricted cash ended at $2.45 billion.

Did Ciena (CIEN) repurchase shares in fiscal Q3 2026?
Yes. Ciena repurchased approximately 0.4 million shares of common stock in Q3 2026 for an aggregate price of $171.7 million under its $1 billion share repurchase program.

What major financing transaction did Ciena (CIEN) complete in Q3 2026?
Ciena completed a $2.875 billion 0.0% coupon convertible notes offering in Q3 2026. The company states this transaction lowers overall interest expense and enhances its financial flexibility, alongside repayment and modification of certain existing debt.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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0000936395false00009363952026-09-032026-09-03


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): September 3, 2026
Ciena Corporation
(Exact name of registrant as specified in its charter)
Commission File Number: 001-36250



Delaware
(State or other jurisdiction of incorporation)
8150 Maple Lawn Boulevard, Suite 300, Fulton, 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 September 3, 2026, Ciena Corporation ("Ciena") issued a press release announcing its financial results for its fiscal third quarter ended August 1, 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 third quarter ended August 1, 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 September 3, 2026, issued by Ciena Corporation, reporting its results of operations for its fiscal third quarter ended August 1, 2026.

99.2
Investor Presentation for Ciena Corporation's fiscal third quarter ended August 1, 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: September 3, 2026
By:
/s/ Sheela Kosaraju
Sheela Kosaraju
Executive Vice President and Chief Legal Officer



FOR IMMEDIATE RELEASE

Ciena Reports Fiscal Third Quarter 2026 Financial Results

Summary
•Fiscal third quarter 2026 revenue was $1.67 billion, up 37% year-over-year
•Fiscal third quarter 2026 adjusted Earnings Per Share (EPS) was $2.11, an increase of 215% compared to fiscal third quarter 2025
•Providing revenue guidance for fiscal fourth quarter 2026 of $1.75 billion plus or minus $50 million
•Raising revenue guidance for fiscal year 2026 to $6.42 billion plus or minus $50 million, a 35% increase year-over-year at the midpoint

FULTON, Md. - September 3, 2026 - Ciena® Corporation (NYSE: CIEN) today announced financial results for its fiscal third quarter ended August 1, 2026.
"Today’s outstanding financial performance demonstrates Ciena’s leadership in providing industry-leading, high-speed connectivity solutions as AI continues to drive compounding waves of network investment,” said Gary Smith, president and CEO, Ciena. “As the only pure-play optical systems and interconnects provider, Ciena’s unmatched combination of incumbency, technology innovation, and deep expertise gives us a powerful competitive edge."

"Our record fiscal third quarter results reflect Ciena’s ability to deliver increasingly profitable growth while positioning for future opportunities,” said Marc Graff, Ciena’s Chief Financial Officer. “Our expanding supply capacity, strengthening business fundamentals, and increasing operating leverage set the stage to continue to accelerate earnings and deliver long-term value for customers and shareholders.”
Performance Summary for Fiscal Third Quarter Ended August 1, 2026
Revenue:
•$1.67 billion in the fiscal third quarter 2026, compared to $1.22 billion in the fiscal third quarter 2025

Net Income per diluted share:
•$1.83 GAAP and $2.11 adjusted (non-GAAP) for the fiscal third quarter 2026, compared to $0.35 and $0.67 for fiscal third quarter 2025, respectively

The tables below (in millions, except percentage data) provide comparisons of certain quarterly results. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.
1

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.
2

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.

3

Notes to Investors

Forward-Looking Statements. You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission ("SEC") filings, recent news, financial results, supplemental financial information, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Forward-looking statements in this release include the "Business Outlook" section of this press release and "Today’s outstanding financial performance demonstrates Ciena’s leadership in providing industry-leading, high-speed connectivity solutions as AI continues to drive compounding waves of network investment. As the only pure-play optical systems and interconnects provider, Ciena’s unmatched combination of incumbency, technology innovation, and deep expertise gives us a powerful competitive edge. Our record fiscal third quarter results reflect Ciena’s ability to deliver increasingly profitable growth while positioning for future opportunities. Our expanding supply capacity, strengthening business fundamentals, and increasing operating leverage set the stage to continue to accelerate earnings and deliver long-term value for customers and shareholders.”

Ciena's actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena's business, including: the effect of broader economic and market conditions on our business and that of our customers, including their spending; the development and use of artificial intelligence and its impact on overall networking technology spending; our ability to execute our business and growth strategies; supply chain constraints or disruptions including increased costs and lead times; the introduction of new technologies by us or our competitors; the timing and size of customer orders, their delivery dates and our ability to fulfill and recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; changes in foreign currency exchange rates; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical tensions or events, and public health emergencies, epidemics, or pandemics; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange 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.

4

Non-GAAP Presentation of Quarterly and Annual Results. This release includes non-GAAP measures of Ciena's gross profit, operating expense, income from operations, earnings before interest, tax, depreciation and amortization (EBITDA), Adjusted EBITDA, and measures of net income and net income per share. In evaluating the operating performance of Ciena's business, management excludes certain charges and credits that are required by GAAP. These items share one or more of the following characteristics: they are unusual and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of Ciena's control. Management believes that the non-GAAP measures below provide management and investors useful information and meaningful insight to the operating performance of the business. The presentation of these non-GAAP financial measures should be considered in addition to Ciena's GAAP results and these measures are not intended to be a substitute for the financial information prepared and presented in accordance with GAAP. Ciena's non-GAAP measures and the related adjustments may differ from non-GAAP measures used by other companies and should only be used to evaluate Ciena's results of operations in conjunction with our corresponding GAAP results. To the extent not previously disclosed in a prior Ciena financial results press release, Appendices A and B to this press release set forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.

With respect to Ciena’s expectations under “Business Outlook” above, Ciena is not able to provide a quantitative reconciliation of the adjusted (non-GAAP) gross margin, adjusted (non-GAAP) operating expense, and adjusted (non-GAAP) operating margin guidance measures to the corresponding gross margin, operating expense, and operating margin GAAP measures without unreasonable efforts. Ciena cannot provide meaningful estimates of the non-recurring charges and credits excluded from these non-GAAP measures due to the forward-looking nature of these estimates and their inherent variability and uncertainty. For the same reasons, Ciena is unable to address the probable significance of the unavailable information.

About Ciena. Ciena is the global leader in high-speed connectivity. We build the world’s most advanced networks to support exponential growth in bandwidth demand. By harnessing the power of our networking systems, interconnects, automation software, and services, Ciena revolutionizes data transmission and network management. With unparalleled expertise and innovation, we empower our customers, partners, and communities to thrive in the AI era. For updates on Ciena, follow us on LinkedIn, X, the Ciena Insights blog, or visit www.ciena.com.
 

5

CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
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.

6

`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 
7

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 
8

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.
9

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.


10
© Ciena Corporation 2026. All rights reserved. Proprietary Information. Ciena Corporation Fiscal Q3 2026 Earnings Presentation Period ended August 1, 2026 September 3, 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 third 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. Note Regarding Market Data: Any market definitions, market share estimates, and competitive landscape depicted herein are provided for illustrative and discussion purposes only. They are based on third-party industry analyst information and/or internal analyses derived from third-party inputs and may not reflect actual market conditions, competitive dynamics, or an exhaustive list of products, services, competitors, or technologies that may be relevant for any particular application.

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.3 Table of Contents 1. Introduction to Ciena 2. Fiscal Q3 2026 financial performance 3. Fiscal Q4 2026 outlook and full-year 2027 preliminary outlook 4. Appendix

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.4 Executive Summary Optical technology is the transport engine that is the key enabler for customers to monetize their AI investments Ciena is the only pure-play optical systems provider operating at scale today Q3 2026 results demonstrate outstanding growth and operational excellence Delivered a record quarter across the board Demand for our innovative solutions continues to increase as evidenced by our growing backlog and customer commitments, resulting in multi-year visibility To address this long-term elevated demand, we have entered into long-term agreements (LTAs) with suppliers and are confident in our ability to continue to take share

 

© 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 Q2 2026 exclude China. Market data is derived from third-party industry analysts. Such data is subject to the assumptions, methodologies, and limitations of those sources and may not reflect actual, current or complete market conditions. Ciena has not independently verified the accuracy or completeness of this information. 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 Globally** Dell'Oro Group #1 in Total Optical Networking in N. America** Cignal AI, Dell'Oro Group, Omdia #1 in Submarine Networks Globally** Omdia Traditional Network WAN Network backbone, edge, and operations AI-WAN Data center interconnect (DCI) and scale-across Interconnects Scale-up, scale-out and DC operations

 

© 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

 

© 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

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information. Q3 FY 2026 results

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.10 Ciena's differentiated position in AI is driving record Q3 performance ▪ Revenue: $1.7B, up 37% YoY • Cloud provider revenue: 53% of total, up 82% YoY • RLS and Waveserver revenue each grew more than 55% YoY • Pluggables revenue more than doubled YoY as WaveLogic 6 Nano (WL6n) ramped meaningfully • APAC revenue increased 58% YoY, with strength across the region • Received a significant direct performance optics module order, expanding Ciena’s participation in new hyperscaler technology consumption models • Secured a second multi-rail win, further validating Ciena’s technology leadership in high-density photonic architectures for AI infrastructure • Record shipments in WL5e, WL6e, and WL6n, demonstrating strength across high-performance modems and coherent pluggables ◦ WL6n 800ZR pluggables shipments more than doubled QoQ • Adj. gross margin: 46.4%, up +450bps YoY • Adj. operating margin: 22.5%, up +1,180bps YoY • Repurchased $172M in Q3; ~$665M returned under the $1B program • Completed a $2.9B, 0.0% coupon convertible debt offering, lowering overall interest expense and enhancing financial flexibility Achieving broad-based growth Prioritizing long-term shareholder value Driving the pace of innovation

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.11 Q3 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 Q3 FY 2025 Q2 FY2026 Q3 FY2026 YoY Change** Revenue $1.22B $1.57B $1.67B 37% Gross Margin 41.3% 44.0% 45.4% 410 bps Operating Expense $430M $454M $458M 7% Operating Margin 6.1% 15.1% 18.0% 1,190 bps EBITDA $109M $283M $350M 220% Fully Diluted EPS $0.35 $1.49 $1.83 423% Non-GAAP Results Q3 FY 2025 Q2 FY2026 Q3 FY2026 YoY Change** Revenue $1.22B $1.57B $1.67B 37% Adjusted Gross Margin* 41.9% 44.9% 46.4% 450 bps Adjusted Operating Expense* $380M $398M $400M 5% Adjusted Operating Margin* 10.7% 19.5% 22.5% 1,180 bps Adjusted EBITDA* $158M $342M $411M 160% Adjusted EPS* $0.67 $1.64 $2.11 215%

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.12 Q3 FY 2026 comparative operating metrics Q3 FY 2025 Q3 FY 2026 YoY Change* Cash and investments $1.4B $2.8B 100% Cash provided by operations $174M $196M 13% Free cash flow $135M $116M (14)% DSO 88 76 (12) Inventory turns 2.7x 3.5x 0.8x Net debt $204M $431M 111% Gross leverage 2.8x 2.6x (0.2)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.14 Key assumptions underlying our outlook AI infrastructure investment: Cloud providers continue to execute on capital expenditure investment plans on AI infrastructure buildouts 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.15 Business outlook for fiscal Q4 20261 1 Projections or outlook with respect to future operating results are only as of September 3, 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 Q4 2026 Revenue $1.75B plus or minus $50M Adjusted Gross Margin 45.0% plus or minus 50 bps Adjusted Operating Expense $415M plus or minus $10M Adjusted Operating Margin 20.0% plus or minus 50 bps

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.16 Early view of outlook for fiscal year 20271 1 Projections or outlook with respect to future operating results are only as of September 3, 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 FY 2027 Revenue At least 30% growth Adjusted Gross Margin 45% to 46% Adjusted Operating Margin 25% to 27%

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information. Q3 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 flexibly routes, amplifies, and manages wavelengths across the network and that can be remotely reconfigured without physically sending a technician on-site RLS Hyper-Rail Ciena's 6th generation of line systems, and the 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 Fiber-based Passive Optical Network (PON) system that integrates Ethernet and console connectivity, enabling secure remote monitoring and control even when the primary network is unavailable. It replaces traditional copper-based out-of-band management infrastructure with a simpler, more scalable architecture. 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 and margins * 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% 8% 11% 15% 14% 12% 76% 78% 78% 77% 14% 8% 10% 11% 79%

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.22 Q3 FY 2026 Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 GAAP gross profit $759,265 $691,554 $625,520 $577,179 $503,079 Share-based compensation-products 2,175 2,010 1,822 1,964 2,027 Share-based compensation-services 4,666 4,504 4,025 3,857 3,942 Amortization of intangible assets 9,652 6,787 6,785 3,750 2,232 Total adjustments related to gross profit 16,493 13,301 12,632 9,571 8,201 Adjusted (non-GAAP) gross profit $775,758 $704,855 $638,152 $586,750 $511,280 Adjusted (non-GAAP) gross profit percentage 46.4 % 44.9 % 44.7 % 43.4 % 41.9 % Gross Profit Reconciliation (Amounts in thousands)

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.23 Q3 FY 2026 Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 GAAP operating expense $458,086 $453,683 $436,108 $566,688 $429,544 Share-based compensation-research and development 20,173 18,586 16,594 16,274 16,749 Share-based compensation-sales and marketing 16,623 16,486 14,754 13,543 13,277 Share-based compensation-general and administrative 14,241 13,887 12,632 13,248 11,008 Significant asset impairments and restructuring costs 887 805 1,498 106,851 1,770 Amortization of intangible assets 3,713 3,713 4,736 6,112 6,556 Acquisition and integration costs — — 306 1,148 — Holdback arrangement 2,419 2,411 2,403 802 — Total adjustments related to operating expense 58,056 55,888 52,923 157,978 49,360 Adjusted (non-GAAP) operating expense $400,030 $397,795 $383,185 $408,710 $380,184 Q3 FY 2026 Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 GAAP income from operations $301,179 $237,871 $189,412 $10,491 $73,535 Total adjustments related to gross profit 16,493 13,301 12,632 9,571 8,201 Total adjustments related to operating expense 58,056 55,888 52,923 157,978 49,360 Total adjustments related to income from operations 74,549 69,189 65,555 167,549 57,561 Adjusted (non-GAAP) income from operations $375,728 $307,060 $254,967 $178,040 $131,096 Adjusted (non-GAAP) operating margin percentage 22.5 % 19.5 % 17.9 % 13.2 % 10.7 % Operating Expense Reconciliation (Amounts in thousands) Income from Operations Reconciliation (Amounts in thousands)

 

© Ciena Corporation 2026. All rights reserved. Proprietary Information.24 Q3 FY 2026 Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 GAAP net income $266,418 $218,220 $150,283 $19,489 $50,308 Exclude GAAP provision (benefit) for income taxes 44,203 12,840 30,832 (16,631) 15,511 Income before income taxes 310,621 231,060 181,115 2,858 65,819 Total adjustments related to income from operations 74,549 69,189 65,555 167,549 57,561 Loss on extinguishment of debt 7,143 — — — — Gain on early termination of interest rate swaps (7,720) — — — — Adjusted income before income taxes 384,593 300,249 246,670 170,407 123,380 Non-GAAP tax provision on adjusted income before income taxes 76,919 60,050 49,334 37,490 27,144 Adjusted (non-GAAP) net income $307,674 $240,199 $197,336 $132,917 $96,236 Weighted average basic common shares outstanding 142,061 141,949 141,676 141,527 141,846 Weighted average diluted potential common shares outstanding(1) 145,967 146,314 145,799 145,470 144,499 Q3 FY 2026 Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 GAAP diluted net income per potential common share $ 1.83 $ 1.49 $ 1.03 $ 0.13 $ 0.35 Adjusted (non-GAAP) diluted net income per potential common share $ 2.11 $ 1.64 $ 1.35 $ 0.91 $ 0.67 (1) Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share for the third quarter ended fiscal 2026 includes 3.9 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) Q3 FY 2026 Q2 FY 2026 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Net income (GAAP) $266,418 $218,220 $150,283 $19,489 $50,308 Add: Interest expense 5,803 20,922 21,254 21,982 22,806 Less: Interest and other income, net 22,388 14,111 12,957 14,349 15,090 Add: Loss on extinguishment and modification of debt 7,143 — — — — Add: Provision (benefit) for income taxes 44,203 12,840 30,832 (16,631) 15,511 Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements 35,326 34,712 32,309 27,496 26,866 Add: Amortization of intangible assets 13,365 10,500 11,521 9,862 8,788 EBITDA $349,870 $283,083 $233,242 $47,849 $109,189 Add: Share-based compensation expense 57,878 55,473 49,827 48,886 47,003 Add: Significant asset impairments and restructuring expense 887 805 1,498 106,851 1,770 Add: Acquisition and integration costs — — 306 1,148 — Add: Holdback arrangement 2,419 2,411 2,403 802 — Adjusted EBITDA $411,054 $341,772 $287,276 $205,536 $157,962 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) (Amounts in thousands)

 

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