Ciena (NYSE: CIEN) posts 33% Q1 2026 growth and raises full-year outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Ciena Corporation reported a very strong fiscal first quarter 2026, with revenue of $1.43 billion, up 33% from $1.07 billion a year earlier. GAAP diluted EPS rose to $1.03 from $0.31, while adjusted EPS more than doubled to $1.35 from $0.64, reflecting higher scale and improved profitability.
Adjusted operating margin expanded to 17.9% from 12.3%, and adjusted EBITDA increased to $287 million from $156 million. Cash and investments totaled about $1.4 billion, supported by $228 million of operating cash flow. Ciena also repurchased approximately 0.4 million shares for $80.5 million.
Management raised its fiscal 2026 revenue outlook to a range of $5.9 billion to $6.3 billion, implying 28% year-over-year growth at the midpoint, and guided fiscal second quarter 2026 revenue to about $1.5 billion plus or minus $50 million, with adjusted gross margin of 43.5%–44.5% and adjusted operating margin of 17.5%–18.5%.
Positive
- Fiscal Q1 2026 revenue grew 33.1% year-over-year to $1.43 billion, with adjusted EPS rising 110.9% to $1.35, and adjusted operating margin expanding to 17.9% from 12.3%, indicating materially stronger profitability.
- Management raised fiscal 2026 revenue guidance to $5.9–$6.3 billion, implying about 28% year-over-year growth at the midpoint, and guided Q2 2026 revenue to about $1.5 billion, signaling confidence in continued demand.
Negative
- None.
Insights
Ciena delivered a sizable beat with sharply higher margins and raised full-year guidance.
Ciena’s fiscal Q1 2026 results show strong top- and bottom-line acceleration. Revenue grew 33.1% year-over-year to
Profitability improvement is backed by scale and disciplined operating expenses, which grew about 10% versus revenue growth above 30%. Adjusted EBITDA rose to
Management’s outlook reinforces momentum: fiscal 2026 revenue guidance increased to
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): March 5, 2026
(Exact name of registrant as specified in its charter)
Commission File Number: 001-36250
(State or other jurisdiction of incorporation)
(Address of principal executive offices)
(IRS Employer Identification No.)
(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 | ||||||
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 March 5, 2026, Ciena Corporation ("Ciena") issued a press release announcing its financial results for its fiscal first quarter ended January 31, 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 first quarter ended January 31, 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 March 5, 2026, issued by Ciena Corporation, reporting its results of operations for its fiscal first quarter ended January 31, 2026. | ||||||||||
99.2 | Investor Presentation for Ciena Corporation's fiscal first quarter ended January 31, 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: March 5, 2026 | By: | /s/ Sheela Kosaraju | ||||||
Sheela Kosaraju | ||||||||
Senior Vice President, General Counsel and Assistant Secretary | ||||||||
FOR IMMEDIATE RELEASE
Ciena Reports Fiscal First Quarter 2026 Financial Results
Summary
•Fiscal first quarter 2026 revenue was $1.43 billion, up 33% year-over-year
•Fiscal first quarter 2026 adjusted Earnings Per Share (EPS) was $1.35, an increase of 111% compared to fiscal first quarter 2025
•Providing revenue guidance of $1.5 billion plus or minus $50 million for fiscal second quarter 2026
•Raising revenue guidance range for fiscal year 2026 to $5.9 billion to $6.3 billion, a 28% increase year-over-year at the midpoint
HANOVER, Md. - March 5, 2026 - Ciena® Corporation (NYSE: CIEN) today announced financial results for its fiscal first quarter ended January 31, 2026.
"We delivered a very strong fiscal first quarter, driven by focused execution and unprecedented, broad-based demand as we enable customers to monetize their AI investments,” said Gary Smith, President and Chief Executive Officer of Ciena. "With industry‑leading technology and deep customer relationships, we are well positioned to meet multi‑year demand as AI‑driven networking continues to scale. We are investing and executing to deliver long‑term value for our shareholders and to support the full range of high‑speed connectivity needs for our customers."
Performance Summary for Fiscal First Quarter Ended January 31, 2026
Revenue:
•$1.43 billion in the fiscal first quarter 2026, compared to $1.07 billion in the fiscal first quarter 2025
Net Income per diluted share:
•$1.03 GAAP and $1.35 adjusted (non-GAAP) for the fiscal first quarter 2026, compared to $0.31 and $0.64 for fiscal first quarter 2025, respectively
The tables below (in millions, except percentage data) provide comparisons of certain quarterly results. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.
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| GAAP Results (unaudited) | Non-GAAP Results (unaudited) | |||||||||||||||||||||||||||||||||||||
| Quarter Ended | Period | Quarter Ended | Period | |||||||||||||||||||||||||||||||||||
| January 31, | February 1, | Change | January 31, | February 1, | Change | |||||||||||||||||||||||||||||||||
| 2026 | 2025 | Y-T-Y* | 2026 | 2025 | Y-T-Y* | |||||||||||||||||||||||||||||||||
| Revenue | $ | 1,427.0 | $ | 1,072.3 | 33.1 | % | $ | 1,427.0 | $ | 1,072.3 | 33.1 | % | ||||||||||||||||||||||||||
| Gross margin | 43.8 | % | 44.0 | % | (0.2) | % | 44.7 | % | 44.7 | % | — | % | ||||||||||||||||||||||||||
| Operating expense | $ | 436.1 | $ | 391.2 | 11.5 | % | $ | 383.2 | $ | 347.4 | 10.3 | % | ||||||||||||||||||||||||||
| Operating margin | 13.3 | % | 7.5 | % | 5.8 | % | 17.9 | % | 12.3 | % | 5.6 | % | ||||||||||||||||||||||||||
| EBITDA | $ | 233.2 | $ | 114.1 | 104.4 | % | $ | 287.3 | $ | 156.5 | 83.6 | % | ||||||||||||||||||||||||||
* Denotes % change, or in the case of margin, absolute change
Business Outlook
“With a historically strong order book and record Q1 backlog, we are poised to deliver strong results, supported by durable demand, through 2026 and into 2027,” said Marc Graff, Ciena’s Chief Financial Officer. “Our strong balance sheet and financial discipline position the company to meet growing demand while improving profitability and shareholder returns.”
Ciena expects fiscal second quarter 2026 to include:
•Revenue in the range of $1.5 billion plus or minus $50 million
•Adjusted (non-GAAP) gross margin between 43.5% and 44.5%
•Adjusted (non-GAAP) operating expense of approximately $375 to $390 million
•Adjusted (non-GAAP) operating margin between 17.5% and 18.5%
Ciena expects fiscal year 2026 to include:
•Revenue in the range of $5.9 billion to $6.3 billion
•Adjusted (non-GAAP) gross margin between 43.5% and 44.5%
•Adjusted (non-GAAP) operating expense of approximately $1.52 to $1.53 billion
•Adjusted (non-GAAP) operating margin between 17.5% and 19.5%
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 “Economic considerations and assumptions in our 2026 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 First Quarter 2026
•Three customers represented 10%-plus of revenue for a total of 47.4% of revenue.
•Average days' sales outstanding (DSOs) were 72.
•Inventory turns were 3.2.
•Repurchased approximately 0.4 million shares of common stock for an aggregate price of $80.5 million under the $1 billion share repurchase program.
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Financial Performance by Segment
| Revenue by Segment (unaudited) | ||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||
| January 31, 2026 | February 1, 2025 | |||||||||||||||||||||||||
| Revenue | %** | Revenue | %** | |||||||||||||||||||||||
| Networking Platforms | ||||||||||||||||||||||||||
| Optical Networking | $ | 1,023.2 | 71.7 | $ | 728.0 | 67.9 | ||||||||||||||||||||
| Routing and Switching | 126.0 | 8.8 | 93.2 | 8.7 | ||||||||||||||||||||||
| Total Networking Platforms | 1,149.2 | 80.5 | 821.2 | 76.6 | ||||||||||||||||||||||
| Platform Software and Services | 93.3 | 6.5 | 95.1 | 8.9 | ||||||||||||||||||||||
| Blue Planet Automation Software and Services | 20.4 | 1.5 | 26.0 | 2.4 | ||||||||||||||||||||||
| Global Services | ||||||||||||||||||||||||||
| Maintenance, Support, and Learning | 87.6 | 6.1 | 74.6 | 7.0 | ||||||||||||||||||||||
| Implementation | 67.9 | 4.8 | 47.7 | 4.4 | ||||||||||||||||||||||
| Advisory and Enablement | 8.6 | 0.6 | 7.7 | 0.7 | ||||||||||||||||||||||
| Total Global Services | 164.1 | 11.5 | 130.0 | 12.1 | ||||||||||||||||||||||
| Total | $ | 1,427.0 | 100.0 | $ | 1,072.3 | 100.0 | ||||||||||||||||||||
** Denotes % of total revenue
Supplemental Materials and Live Web Broadcast of Unaudited Fiscal First Quarter 2026 Results
Today, Thursday, March 5, 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 first 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.
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
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the "Business Outlook" section of this press release and "We delivered a very strong fiscal first quarter, driven by focused execution and unprecedented, broad-based demand as we enable customers to monetize their AI investments. With industry‑leading technology and deep customer relationships, we are well positioned to meet multi‑year demand as AI‑driven networking continues to scale. We are investing and executing to deliver long‑term value for our shareholders and to support the full range of our customers’ high‑speed connectivity needs." and “With a historically strong order book and record Q1 backlog, we are poised to deliver strong results, supported by durable demand, through 2026 and into 2027. Our strong balance sheet and financial discipline position the company to meet growing demand while improving profitability and shareholder returns.”
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 first 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.
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.
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About Ciena. Ciena is the global leader in high-speed connectivity. We build the world’s most advanced networks to support exponential growth in bandwidth demand. By harnessing the power of our networking systems, interconnects, automation software, and services, Ciena revolutionizes data transmission and network management. With unparalleled expertise and innovation, we empower our customers, partners, and communities to thrive in the AI era. For updates on Ciena, follow us on LinkedIn, X, the Ciena Insights blog, or visit www.ciena.com.
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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Quarter Ended | |||||||||||
| January 31, | February 1, | ||||||||||
| 2026 | 2025 | ||||||||||
| Revenue: | |||||||||||
| Products | $ | 1,179,870 | $ | 854,785 | |||||||
| Services | 247,172 | 217,475 | |||||||||
| Total revenue | 1,427,042 | 1,072,260 | |||||||||
| Cost of goods sold: | |||||||||||
| Products | 666,574 | 490,804 | |||||||||
| Services | 134,948 | 109,635 | |||||||||
| Total cost of goods sold | 801,522 | 600,439 | |||||||||
| Gross profit | 625,520 | 471,821 | |||||||||
| Operating expenses: | |||||||||||
| Research and development | 221,458 | 192,663 | |||||||||
| Selling and marketing | 148,867 | 136,504 | |||||||||
| General and administrative | 59,243 | 53,902 | |||||||||
| Significant asset impairments and restructuring costs | 1,498 | 1,544 | |||||||||
| Amortization of intangible assets | 4,736 | 6,545 | |||||||||
| Acquisition and integration costs | 306 | — | |||||||||
| Total operating expenses | 436,108 | 391,158 | |||||||||
| Income from operations | 189,412 | 80,663 | |||||||||
| Interest and other income, net | 12,957 | 11,578 | |||||||||
| Interest expense | (21,254) | (22,918) | |||||||||
| Loss on extinguishment and modification of debt | — | (729) | |||||||||
| Income before income taxes | 181,115 | 68,594 | |||||||||
| Provision for income taxes | 30,832 | 24,022 | |||||||||
| Net income | $ | 150,283 | $ | 44,572 | |||||||
| Net Income per Common Share | |||||||||||
| Basic net income per common share | $ | 1.06 | $ | 0.31 | |||||||
| Diluted net income per potential common share | $ | 1.03 | $ | 0.31 | |||||||
| Weighted average basic common shares outstanding | 141,676 | 142,880 | |||||||||
Weighted average dilutive potential common shares outstanding1 | 145,799 | 145,944 | |||||||||
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) 4.1 million for the first quarter ended fiscal 2026; and (ii) 3.1 million for the first quarter ended fiscal 2025.
6
CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
| January 31, | November 1, | ||||||||||
| 2026 | 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,123,413 | $ | 1,091,952 | |||||||
| Short-term investments | 176,315 | 216,148 | |||||||||
| Accounts receivable, net | 967,408 | 975,856 | |||||||||
| Inventories, net | 845,823 | 826,235 | |||||||||
| Prepaid expenses and other | 427,918 | 455,316 | |||||||||
| Total current assets | 3,540,877 | 3,565,507 | |||||||||
| Long-term investments | 69,876 | 57,142 | |||||||||
| Equipment, building, furniture and fixtures, net | 437,838 | 386,779 | |||||||||
| Operating lease right-of-use assets | 40,484 | 38,613 | |||||||||
| Goodwill | 521,712 | 521,204 | |||||||||
| Other intangible assets, net | 212,689 | 224,210 | |||||||||
| Deferred tax asset, net | 877,995 | 884,889 | |||||||||
| Other long-term assets | 190,888 | 186,323 | |||||||||
| Total assets | $ | 5,892,359 | $ | 5,864,667 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 547,221 | $ | 542,841 | |||||||
| Accrued liabilities and other short-term obligations | 395,881 | 531,081 | |||||||||
| Deferred revenue | 290,418 | 208,936 | |||||||||
| Operating lease liabilities | 13,273 | 13,956 | |||||||||
| Current portion of long-term debt | 11,580 | 11,580 | |||||||||
| Total current liabilities | 1,258,373 | 1,308,394 | |||||||||
| Long-term deferred revenue | 100,455 | 94,850 | |||||||||
| Other long-term obligations | 182,329 | 175,426 | |||||||||
| Long-term operating lease liabilities | 34,100 | 32,516 | |||||||||
| Long-term debt, net | 1,524,744 | 1,524,158 | |||||||||
| Total liabilities | 3,100,001 | 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; 141,452,656 and 141,016,300 shares issued and outstanding | 1,415 | 1,410 | |||||||||
| Additional paid-in capital | 5,849,492 | 5,953,057 | |||||||||
| Accumulated other comprehensive loss | (38,723) | (55,035) | |||||||||
| Accumulated deficit | (3,019,826) | (3,170,109) | |||||||||
| Total stockholders’ equity | 2,792,358 | 2,729,323 | |||||||||
| Total liabilities and stockholders’ equity | $ | 5,892,359 | $ | 5,864,667 | |||||||
7
CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Quarter Ended | |||||||||||
| January 31, | February 1, | ||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows provided by operating activities: | |||||||||||
| Net income | $ | 150,283 | $ | 44,572 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements | 32,309 | 24,679 | |||||||||
| Share-based compensation expense | 49,827 | 40,806 | |||||||||
| Amortization of intangible assets | 11,521 | 8,778 | |||||||||
| Deferred taxes | (7,043) | (17,085) | |||||||||
| Provision for inventory excess and obsolescence | 21,832 | 10,918 | |||||||||
| Provision for warranty | 8,185 | 5,697 | |||||||||
| Other | (1,545) | (6,655) | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable | 9,406 | (33,454) | |||||||||
| Inventories | (41,228) | (35,844) | |||||||||
| Prepaid expenses and other | 40,024 | 92,036 | |||||||||
| Operating lease right-of-use assets | 2,879 | 2,902 | |||||||||
| Accounts payable, accruals and other obligations | (130,907) | (49,577) | |||||||||
| Deferred revenue | 86,013 | 20,311 | |||||||||
| Short and long-term operating lease liabilities | (3,911) | (4,361) | |||||||||
| Net cash provided by operating activities | 227,645 | 103,723 | |||||||||
| Cash flows used in investing activities: | |||||||||||
| Payments for equipment, furniture, and fixtures | (73,885) | (26,884) | |||||||||
| Purchases of investments | (39,919) | (97,024) | |||||||||
| Proceeds from sales and maturities of investments | 68,882 | 55,061 | |||||||||
| Settlement of foreign currency forward contracts, net | 1,036 | 1,757 | |||||||||
| Net cash used in investing activities | (43,886) | (67,090) | |||||||||
| 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 | — | (2,895) | |||||||||
| Payment of debt issuance costs | — | (10) | |||||||||
| Payment of finance lease obligations | (1,158) | (1,020) | |||||||||
| Shares repurchased for tax withholdings on vesting of stock unit awards | (90,100) | (25,489) | |||||||||
| Repurchases of common stock - repurchase program, net | (80,513) | (81,176) | |||||||||
| Proceeds from issuance of common stock | 17,226 | 17,133 | |||||||||
| Net cash used in financing activities | (154,545) | (93,457) | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,247 | (3,289) | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 31,461 | (60,113) | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 1,092,197 | 935,026 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,123,658 | $ | 874,913 | |||||||
| Supplemental disclosure of cash flow information | |||||||||||
| Cash paid during the period for interest, net | $ | 16,879 | $ | 25,559 | |||||||
| Cash paid during the period for income taxes, net | $ | 10,718 | $ | 10,426 | |||||||
| Operating lease payments | $ | 4,516 | $ | 4,762 | |||||||
| Non-cash investing and financing activities | |||||||||||
| Purchase of equipment in accounts payable | $ | 14,910 | $ | 4,735 | |||||||
| Repurchase of common stock in accrued liabilities from repurchase program, net | $ | 2,579 | $ | 4,198 | |||||||
| Operating right-of-use assets subject to lease liability | $ | 4,894 | $ | 1,056 | |||||||
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| APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements | ||||||||||||||
| (in thousands, except per share data) (unaudited) | ||||||||||||||
| Quarter Ended | ||||||||||||||
| January 31, | February 1, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| Gross Profit Reconciliation (GAAP/non-GAAP) | ||||||||||||||
| GAAP gross profit | $ | 625,520 | $ | 471,821 | ||||||||||
| Share-based compensation-products | 1,822 | 1,750 | ||||||||||||
| Share-based compensation-services | 4,025 | 3,405 | ||||||||||||
| Amortization of intangible assets | 6,785 | 2,233 | ||||||||||||
| Total adjustments related to gross profit | 12,632 | 7,388 | ||||||||||||
| Adjusted (non-GAAP) gross profit | $ | 638,152 | $ | 479,209 | ||||||||||
| Adjusted (non-GAAP) gross profit percentage | 44.7 | % | 44.7 | % | ||||||||||
| Operating Expense Reconciliation (GAAP/non-GAAP) | ||||||||||||||
| GAAP operating expense | $ | 436,108 | $ | 391,158 | ||||||||||
| Share-based compensation-research and development | 16,594 | 14,237 | ||||||||||||
| Share-based compensation-sales and marketing | 14,754 | 11,597 | ||||||||||||
| Share-based compensation-general and administrative | 12,632 | 9,827 | ||||||||||||
| Significant asset impairments and restructuring costs | 1,498 | 1,544 | ||||||||||||
| Amortization of intangible assets | 4,736 | 6,545 | ||||||||||||
| Acquisition and integration costs | 306 | — | ||||||||||||
| Holdback arrangement | 2,403 | — | ||||||||||||
| Total adjustments related to operating expense | 52,923 | 43,750 | ||||||||||||
| Adjusted (non-GAAP) operating expense | $ | 383,185 | $ | 347,408 | ||||||||||
| Income from Operations Reconciliation (GAAP/non-GAAP) | ||||||||||||||
| GAAP income from operations | $ | 189,412 | $ | 80,663 | ||||||||||
| Total adjustments related to gross profit | 12,632 | 7,388 | ||||||||||||
| Total adjustments related to operating expense | 52,923 | 43,750 | ||||||||||||
| Total adjustments related to income from operations | 65,555 | 51,138 | ||||||||||||
| Adjusted (non-GAAP) income from operations | $ | 254,967 | $ | 131,801 | ||||||||||
| Adjusted (non-GAAP) operating margin percentage | 17.9 | % | 12.3 | % | ||||||||||
| Net Income Reconciliation (GAAP/non-GAAP) | ||||||||||||||
| GAAP net income | $ | 150,283 | $ | 44,572 | ||||||||||
| Exclude GAAP provision for income taxes | 30,832 | 24,022 | ||||||||||||
| Income before income taxes | 181,115 | 68,594 | ||||||||||||
| Total adjustments related to income from operations | 65,555 | 51,138 | ||||||||||||
| Loss on extinguishment and modification of debt | — | 729 | ||||||||||||
| Adjusted income before income taxes | 246,670 | 120,461 | ||||||||||||
| Non-GAAP tax provision on adjusted income before income taxes | 49,334 | 26,501 | ||||||||||||
| Adjusted (non-GAAP) net income | $ | 197,336 | $ | 93,960 | ||||||||||
| Weighted average basic common shares outstanding | 141,676 | 142,880 | ||||||||||||
Weighted average dilutive potential common shares outstanding 1 | 145,799 | 145,944 | ||||||||||||
| Net Income per Common Share | ||||||||||||||
| GAAP diluted net income per potential common share | $ | 1.03 | $ | 0.31 | ||||||||||
| Adjusted (non-GAAP) diluted net income per potential common share | $ | 1.35 | $ | 0.64 | ||||||||||
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) 4.1 million for the first quarter ended fiscal 2026; and (ii) 3.1 million for the first quarter ended fiscal 2025.
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| APPENDIX B - Calculation of EBITDA and Adjusted EBITDA | ||||||||||||||
| (in thousands) (unaudited) | ||||||||||||||
| Quarter Ended | ||||||||||||||
| January 31, | February 1, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) | ||||||||||||||
| Net income (GAAP) | $ | 150,283 | $ | 44,572 | ||||||||||
| Add: Interest expense | 21,254 | 22,918 | ||||||||||||
| Less: Interest and other income, net | 12,957 | 11,578 | ||||||||||||
| Add: Loss on extinguishment and modification of debt | — | 729 | ||||||||||||
| Add: Provision for income taxes | 30,832 | 24,022 | ||||||||||||
| Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements | 32,309 | 24,679 | ||||||||||||
| Add: Amortization of intangible assets | 11,521 | 8,778 | ||||||||||||
| EBITDA | $ | 233,242 | $ | 114,120 | ||||||||||
| Add: Share-based compensation expense | 49,827 | 40,816 | ||||||||||||
| Add: Significant asset impairments and restructuring costs | 1,498 | 1,544 | ||||||||||||
| Add: Acquisition and integration costs | 306 | — | ||||||||||||
| Add: Holdback arrangement | 2,403 | — | ||||||||||||
| Adjusted EBITDA | $ | 287,276 | $ | 156,480 | ||||||||||
* * *
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.
•Acquisition and integration costs - consists of financial, legal, and accounting advisors and employee-related costs related to our acquisition of Nubis Communications, Inc. during the fourth quarter of fiscal 2025.
•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 and modification of debt - reflects extinguishment and debt modification expenses related to refinancing our term loan during the first quarter of fiscal 2025.
•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 first quarter of fiscal 2026 and 22% for the first 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 Q1 2026 Earnings Presentation Period ended January 31, 2026 March 5, 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 first 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. Overview and Ciena's portfolio 2. Industry context 3. Ciena is positioned for accelerated growth 4. Fiscal Q1 2026 financial performance 5. Fiscal year 2026 and Q2 outlook 6. Appendix
© Ciena Corporation 2026. All rights reserved. Proprietary Information. Overview and Ciena's portfolio
© Ciena Corporation 2026. All rights reserved. Proprietary Information.5 Ciena is the global leader in high-speed connectivity We build advanced networks to support exponential growth in bandwidth demand – empowering our customers, partners, and communities to thrive in the AI era. With unparalleled expertise and innovation, our networking systems, interconnects, automation software, and services revolutionize data transmission and network management. *Information as of Fiscal Year End 2025 ~2,400 patents* $1.4B cash & investments* 1,700+ customers worldwide* 28% Midpoint of FY26 annual revenue growth (as of March 5, 2026) 4,500+ R&D specialists* 9,000+ employees*
© Ciena Corporation 2026. All rights reserved. Proprietary Information.6 Market dynamics are informing our strategic portfolio investments
© Ciena Corporation 2026. All rights reserved. Proprietary Information. Industry context
© Ciena Corporation 2026. All rights reserved. Proprietary Information.8 Increasing bandwidth consumption is driving network expansion AI generation 2024-2030
© Ciena Corporation 2026. All rights reserved. Proprietary Information.9 An evolving industry is reshaping networks
© Ciena Corporation 2026. All rights reserved. Proprietary Information.10 Ciena's industry leadership is well-proven #1 Globally • Data center interconnect • Optical for cloud providers • Purpose-built/compact modular DCI #1 N. America • Total optical networking • Optical packet #2 Globally • Total optical networking Optical Transport Report, 4Q25 #1 Globally • Purpose-built/compact modular DCI • SLTE WDM #1 N. America • Total optical networking • Purpose-built/compact modular DCI #2 Globally • Total optical networking Optical Networking Report, 4Q25 #1 Globally • Purpose-built/compact modular DCI • Optical for cloud and colo • SLTE WDM • Routing/Access #1 N. America • Total optical networking • Optical for cloud and colo • Routing/Access #2 Globally • Total optical networking Transport Hardware & Markets Preliminary Report, 4Q25 M a rk e t le a d e rs h ip In d u s tr y r e c o g n it io n
© Ciena Corporation 2026. All rights reserved. Proprietary Information. Ciena is positioned for accelerated growth
© Ciena Corporation 2026. All rights reserved. Proprietary Information.12 Our future growth opportunities Long-term growth in core business plus new higher-growth addressable markets provide an opportunity to outpace our traditional revenue CAGR over time In & Around the Data Center Use Cases • 400G ZR, 800G ZR (WL6 Nano) and 1.6T ZR • Scale Across DC Clusters for AI Infrastructure Connectivity • Data Center Out-of-band Management (DCOM) • Coherent Lite (1.6T LR) • Components / High-speed Interconnects Inside DC ◦ Vesta 200 WAN Use Cases • Subsea, Long Haul, Metro Regional, Metro DCI • Network upgrades to RLS and 1.6T WL6 Extreme • Hyper-rail • Managed Optical Fiber Networks (MOFN)* * FY2026 Growth based on the midpoint of revenue guidance as of March 5, 2026
© Ciena Corporation 2026. All rights reserved. Proprietary Information.13 Data center interconnect applications are expanding
© Ciena Corporation 2026. All rights reserved. Proprietary Information. Q1 FY 2026 results
© Ciena Corporation 2026. All rights reserved. Proprietary Information.15 Q1 FY 2026 key highlights ▪ Non-telco represented 53% of total revenue ▪ Direct Cloud Provider revenue grew 76% YoY and represented 42% of total revenue ▪ EMEA revenue grew 27% YoY ▪ Global Services revenue grew 26% YoY • Continued strong uptake of WaveLogic 6 Extreme, the industry’s only 1.6 Tb/s coherent solution, adding 18 new customers in Q1 to reach 90 total • Grew both revenue and shipments of RLS more than 80% YoY fueled by ongoing AI-driven Cloud expansion • Increased neoscaler momentum through clear technology differentiation, with multiple direct and MOFN-related design wins • Total shareholder return five-year CAGR of 44%1 • Repurchased ~0.4 million shares for $80.5 million under our three-year program (FY25-27) 1 Based on closing share price performance 2/20/2021 to 2/20/2026 Achieving broad-based growth Prioritizing long-term shareholder value Driving the pace of innovation
© Ciena Corporation 2026. All rights reserved. Proprietary Information.16 Q1 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 Q1 FY 2026 Q1 FY 2025 YoY Change** Revenue $1.43B $1.07B 33.1% Adjusted Gross Margin* 44.7% 44.7% — Adjusted Operating Expense* $383M $347M 10.3% Adjusted Operating Margin* 17.9% 12.3% 5.6% Adjusted EBITDA* $287M $156M 83.6% Adjusted EPS* $1.35 $0.64 110.9%
© Ciena Corporation 2026. All rights reserved. Proprietary Information.17 Q1 FY 2026 comparative operating metrics Q1 FY 2026 Q1 FY 2025 YoY Change* Cash and investments $1.4B $1.3B 4.0% Cash provided by operations $228M $104M 119.5% Free cash flow $154M $77M 100.1% DSO 72 90 (18) Inventory turns 3.2x 2.3x 0.9x Net debt $174M $283M (38.5)% Gross leverage 2.0x 3.4x (1.4)x * Denotes % change, or in the case of DSO, inventory turns, and gross leverage, absolute change
© Ciena Corporation 2026. All rights reserved. Proprietary Information.18 Revenue by segment (Amounts in millions) Q1 FY 2026 Q1 FY 2025 Revenue %** Revenue %** Networking Platforms Optical Networking $1,023.2 71.7 $728.0 67.9 Routing and Switching 126.0 8.8 93.2 8.7 Total Networking Platforms 1,149.2 80.5 821.2 76.6 Platform Software and Services 93.3 6.5 95.1 8.9 Blue Planet Automation Software and Services 20.4 1.5 26.0 2.4 Global Services Maintenance, Support, and Learning 87.6 6.1 74.6 7.0 Implementation 67.9 4.8 47.7 4.4 Advisory and Enablement 8.6 0.6 7.7 0.7 Total Global Services 164.1 11.5 130.0 12.1 Total $1,427.0 100.0 $1,072.3 100.0 * Reconciliations of these non-GAAP measures to GAAP results are included in the appendix to this presentation. ** Denotes % of total revenue
© Ciena Corporation 2026. All rights reserved. Proprietary Information.19 Revenue by customer type
© Ciena Corporation 2026. All rights reserved. Proprietary Information.20 Revenue by geographic region 11% 9% 8% 15% 17% 14% 74% 74% 76% 78% 15% 9% 8% 14% 78%
© Ciena Corporation 2026. All rights reserved. Proprietary Information. Business outlook
© Ciena Corporation 2026. All rights reserved. Proprietary Information.22 Economic considerations and assumptions in our 2026 outlook • We do not experience significant deferrals of delivery of forecasted orders or of our existing backlog • We are able to ramp capacity and deliver new products according to our roadmap and customer adoption of these products continues to be consistent with our expectations • Component suppliers deliver on their supply commitments consistent with our expectations and we do not encounter any substantial new supply disruptions that we cannot successfully mitigate • Given our distinct competitive and technology advantages, we continue to benefit disproportionately and gain market share Revenue assumptionsBusiness assumptions Profitability assumptions • Operating expense remains relatively flat compared to FY 2025 as we improve efficiencies • We expect quarterly variability in gross margins due to product mix and certain pricing and cost impacts of the demand/supply imbalance • We do not experience significant supply chain price increases and we are able to achieve some product cost reductions, particularly for our new product introduction and interconnect products • We will benefit from being first to market, delivering to customers new, differentiated products that provide more value • Macro environment, including geopolitical tensions or events and acts of war or terrorism, does not significantly worsen or result in any adverse effects on our business • Longer-term fundamental industry demand drivers – including increasing demand for bandwidth, adoption of cloud architectures, network automation requirements, and AI- related expansions – will cause customers to prioritize network capex to address this demand • Our business is not materially impacted by the imposition of tariffs or similar significant trade measures by the U.S. or other countries or other significant regulatory changes
© Ciena Corporation 2026. All rights reserved. Proprietary Information.23 Business outlook for fiscal year 20261 1 Projections or outlook with respect to future operating results are only as of March 5, 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 Year 2026 Revenue $5.9B to $6.3B Adjusted Gross Margin 43.5% to 44.5% Adjusted Operating Expense Approximately $1.52B to $1.53B Adjusted Operating Margin 17.5% to 19.5%
© Ciena Corporation 2026. All rights reserved. Proprietary Information.24 Business outlook for fiscal second quarter 20261 1 Projections or outlook with respect to future operating results are only as of March 5, 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. Q2 FY 2026 Revenue $1.5B plus or minus $50M Adjusted Gross Margin 43.5% to 44.5% Adjusted Operating Expense Approximately $375M to $390M Adjusted Operating Margin 17.5% to 18.5%
© Ciena Corporation 2026. All rights reserved. Proprietary Information. Q1 FY 2026 appendix
© Ciena Corporation 2026. All rights reserved. Proprietary Information.26 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 Q1 FY 2025 GAAP gross profit $625,520 $577,179 $503,079 $452,838 $471,821 Share-based compensation-products 1,822 1,964 2,027 2,033 1,750 Share-based compensation-services 4,025 3,857 3,942 3,980 3,405 Amortization of intangible assets 6,785 3,750 2,232 2,232 2,233 Total adjustments related to gross profit 12,632 9,571 8,201 8,245 7,388 Adjusted (non-GAAP) gross profit $638,152 $586,750 $511,280 $461,083 $479,209 Adjusted (non-GAAP) gross profit percentage 44.7 % 43.4 % 41.9 % 41.0 % 44.7 % Gross Profit Reconciliation (Amounts in thousands)
© Ciena Corporation 2026. All rights reserved. Proprietary Information.27 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 Q1 FY 2025 GAAP operating expense $436,108 $566,688 $429,544 $419,996 $391,158 Share-based compensation-research and development 16,594 16,274 16,749 17,021 14,237 Share-based compensation-sales and marketing 14,754 13,543 13,277 13,649 11,597 Share-based compensation-general and administrative 12,632 13,248 11,008 11,341 9,827 Significant asset impairments and restructuring costs 1,498 106,851 1,770 1,948 1,544 Amortization of intangible assets 4,736 6,112 6,556 6,545 6,545 Acquisition and integration costs 306 1,148 — — — Holdback arrangement 2,403 802 — — — Total adjustments related to operating expense 52,923 157,978 49,360 50,504 43,750 Adjusted (non-GAAP) operating expense $383,185 $408,710 $380,184 $369,492 $347,408 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 Q1 FY 2025 GAAP income from operations $189,412 $10,491 $73,535 $32,842 $80,663 Total adjustments related to gross profit 12,632 9,571 8,201 8,245 7,388 Total adjustments related to operating expense 52,923 157,978 49,360 50,504 43,750 Total adjustments related to income from operations 65,555 167,549 57,561 58,749 51,138 Adjusted (non-GAAP) income from operations $254,967 $178,040 $131,096 $91,591 $131,801 Adjusted (non-GAAP) operating margin percentage 17.9 % 13.2 % 10.7 % 8.2 % 12.3 % Operating Expense Reconciliation (Amounts in thousands) Income from Operations Reconciliation (Amounts in thousands)
© Ciena Corporation 2026. All rights reserved. Proprietary Information.28 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 Q1 FY 2025 GAAP net income $150,283 $19,489 $50,308 $8,969 $44,572 Exclude GAAP provision (benefit) for income taxes 30,832 (16,631) 15,511 10,047 24,022 Income before income taxes 181,115 2,858 65,819 19,016 68,594 Total adjustments related to income from operations 65,555 167,549 57,561 58,749 51,138 Loss on extinguishment and modification of debt — — — — 729 Adjusted income before income taxes 246,670 170,407 123,380 77,765 120,461 Non-GAAP tax provision on adjusted income before income taxes 49,334 37,490 27,144 17,108 26,501 Adjusted (non-GAAP) net income $197,336 $132,917 $96,236 $60,657 $93,960 Weighted average basic common shares outstanding 141,676 141,527 141,846 142,503 142,880 Weighted average diluted potential common shares outstanding(1) 145,799 145,470 144,499 144,972 145,944 Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 Q1 FY 2025 GAAP diluted net income per potential common share $ 1.03 $ 0.13 $ 0.35 $ 0.06 $ 0.31 Adjusted (non-GAAP) diluted net income per potential common share $ 1.35 $ 0.91 $ 0.67 $ 0.42 $ 0.64 (1) Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share for the first quarter ended fiscal 2026 includes 4.1 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.29 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q1 FY 2026 Q4 FY 2025 Q3 FY 2025 Q2 FY 2025 Q1 FY 2025 Net income (GAAP) $150,283 $19,489 $50,308 $8,969 $44,572 Add: Interest expense 21,254 21,982 22,806 21,697 22,918 Less: Interest and other income, net 12,957 14,349 15,090 7,871 11,578 Add: Loss on extinguishment and modification of debt — — — — 729 Add: Provision (benefit) for income taxes 30,832 (16,631) 15,511 10,047 24,022 Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements 32,309 27,496 26,866 25,092 24,679 Add: Amortization of intangible assets 11,521 9,862 8,788 8,777 8,778 EBITDA $233,242 $47,849 $109,189 $66,711 $114,120 Add: Share-based compensation expense 49,827 48,886 47,003 48,024 40,816 Add: Significant asset impairments and restructuring expense 1,498 106,851 1,770 1,948 1,544 Add: Acquisition and integration costs 306 1,148 — — — Add: Holdback arrangement 2,403 802 — — — Adjusted EBITDA $287,276 $205,536 $157,962 $116,683 $156,480 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) (Amounts in thousands)
FAQ
How did Ciena (CIEN) perform financially in fiscal Q1 2026?
Ciena delivered strong fiscal Q1 2026 results, with revenue of $1.43 billion, up 33.1% year-over-year. GAAP diluted EPS was $1.03 versus $0.31, while adjusted EPS climbed to $1.35 from $0.64, reflecting higher scale and improved operating margins.
What revenue and margin guidance did Ciena (CIEN) provide for fiscal Q2 2026?
For fiscal Q2 2026, Ciena expects revenue of about $1.5 billion plus or minus $50 million. It projects adjusted gross margin between 43.5% and 44.5% and adjusted operating margin between 17.5% and 18.5%, indicating sustained profitability levels following Q1.
What is Ciena’s (CIEN) full-year fiscal 2026 outlook for revenue and profitability?
Ciena forecasts fiscal 2026 revenue between $5.9 billion and $6.3 billion, implying roughly 28% growth at the midpoint. It targets adjusted gross margin of 43.5%–44.5%, adjusted operating expense of about $1.52–$1.53 billion, and adjusted operating margin of 17.5%–19.5%.
How did Ciena’s (CIEN) profitability metrics change year-over-year in Q1 2026?
In Q1 2026, Ciena’s adjusted operating margin improved to 17.9% from 12.3%, and adjusted EBITDA increased to $287 million from $156 million. GAAP diluted EPS rose to $1.03 from $0.31, and adjusted EPS grew to $1.35 from $0.64 year-over-year.
What was Ciena’s (CIEN) cash and debt position at the end of Q1 2026?
At January 31, 2026, Ciena reported total cash and cash equivalents of $1.12 billion plus short- and long-term investments totaling $246.2 million. Long-term debt, including current portion, was about $1.54 billion, and net debt stood at approximately $174 million.
Did Ciena (CIEN) return capital to shareholders in fiscal Q1 2026?
Yes. Ciena repurchased approximately 0.4 million shares of common stock in Q1 2026. The aggregate price was about $80.5 million, executed under its three-year, $1 billion share repurchase program covering fiscal years 2025 through 2027.
How concentrated was Ciena’s (CIEN) customer base in fiscal Q1 2026?
In fiscal Q1 2026, three customers each contributed at least 10% of revenue, and together they represented 47.4% of total revenue. This indicates meaningful customer concentration alongside broad-based growth across segments and regions.
Filing Exhibits & Attachments
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Ciena Corp
NYSE:CIEN
CIEN Rankings
CIEN Latest News
CIEN Latest SEC Filings
Mar 5, 2026
[10-Q] CIENA CORP Quarterly Earnings Report
Mar 4, 2026
[Form 4] CIENA CORP Insider Trading Activity
Feb 19, 2026
[Form 4] CIENA CORP Insider Trading Activity
Feb 19, 2026
[Form 4] CIENA CORP Insider Trading Activity
Feb 17, 2026
[144] CIENA CORP SEC Filing