Ciena Reports Fiscal First Quarter 2026 Financial Results
HANOVER, Md.--( BUSINESS WIRE)-- 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:
Net Income per diluted share:
The tables below (in millions, except percentage data) provide comparisons of certain quarterly results. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.
GAAP Results (unaudited)
Non-GAAP Results (unaudited)
Quarter Ended
Period
Quarter Ended
Period
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:
Ciena expects fiscal year 2026 to include:
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
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 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.
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.
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 outstanding 1
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.
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
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
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.
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: