Ciena (CIEN) investor relations material

Executive summary

• Q3 2026 revenue grew 37% year-over-year to $1.7 billion, driven by strong demand for AI, cloud, and high-speed connectivity, resulting in record backlog and multi-year supply agreements.

• Adjusted EPS rose 215% to $2.11, with adjusted operating margin at a record 22.5%.

• Management emphasized expanding supply capacity, operational excellence, and long-term value creation.

• Entered long-term supplier agreements and secured major wins in hyperscaler and optics platforms.

• Net income for Q3 2026 was $266.4 million, up from $50.3 million in Q3 2025.

Financial highlights

• Q3 2026 revenue reached $1.67 billion, up from $1.22 billion in Q3 2025; adjusted gross margin was 46.4%, up 450 bps year-over-year.

• Adjusted EBITDA rose to $411 million (+160% YoY); adjusted EPS was $2.11 (+215% YoY).

• Cash and investments at quarter-end totaled $2.8 billion; net cash from operations for nine months was $683.6 million.

• Repurchased $172 million in shares in Q3; convertible debt offering of $2.9 billion at 0% coupon completed.

• Interconnects and direct cloud provider revenue grew over 80% year-over-year.

Outlook and guidance

• Q4 2026 revenue guidance is $1.75 billion ±$50 million; full-year 2026 midpoint raised to $6.42 billion.

• Adjusted gross margin for Q4 expected at 45% ±50 bps; annual operating margin expected between 20% and 21%.

• Fiscal 2027 revenue expected to grow at least 30% year-over-year to $8.3–$8.4 billion, with gross margin between 45% and 46% and operating margin of 25%–27%.

• Guidance assumes stable AI infrastructure investment, supply chain, trade policy, and FX rates.

• Ongoing investment in R&D and supply chain capacity to support growth and innovation.