Ciena (CIEN) investor relations material

Executive summary

• Q1 FY 2026 revenue reached $1.43 billion, up 33% year-over-year, driven by strong demand from cloud, service providers, and robust execution across all segments.

• Adjusted EPS was $1.35, more than double the prior year; GAAP EPS was $1.03, with net income at $150.3 million.

• Backlog surged to a record $7 billion, with orders exceeding revenue and most new orders for fulfillment in fiscal 2027.

• Non-telco customers accounted for 53% of revenue, and direct cloud provider revenue rose 76% year-over-year to 42% of total.

• Continued strong adoption of WaveLogic 6 Extreme and RLS product lines, each up over 80% year-over-year.

Financial highlights

• Revenue: $1.43 billion in Q1 2026, up 33.1% year-over-year, a quarterly record.

• Adjusted gross margin: 44.7% (non-GAAP), flat year-over-year; GAAP gross margin was 43.8%.

• Adjusted operating margin improved to 17.9% from 12.3% year-over-year.

• Adjusted EBITDA rose 83.6% to $287 million; adjusted net income: $197 million.

• Cash and investments at $1.4 billion; cash from operations was $228 million.

Outlook and guidance

• FY 2026 revenue guidance raised to $5.9–$6.3 billion, implying 24–28% year-over-year growth.

• FY 2026 adjusted gross margin expected between 43.5% and 44.5%; adjusted operating margin 17.5% to 19.5%.

• Q2 2026 revenue expected at $1.5 billion ±$50 million; adjusted gross margin 43.5–44.5%.

• Adjusted operating expenses for 2026 projected at $1.52–$1.53 billion.

• Guidance assumes stable macro environment and continued demand for bandwidth.