Financial Analysis

BUSINESS COMBINATIONS Fiscal 2025 Acquisitions: Nubis Communications On October 7, 2025, Ciena acquired 100% of the equity in Nubis Communications, a company specializing in high-performance, ultra-compact, low-power optical and electrical interconnects tailored to support AI workloads, including co-packaged optics, near packaged optics and electrical active copper cables that complement Cienas optical networking portfolio and high-speed interconnects. Nubis was acquired for an aggregate of approximately $270.5 million. This transaction has been accounted for as the acquisition of a business under ASC 805. The purchase price of $232.6 million was paid in cash at the time of the acquisition. In addition, there were $37.9 million of future payable arrangements including $28.9 million of contingent compensation and $9.0 million of unvested options converted to a right to receive cash over a four year period. These arrangements are tied to future employment and accordingly are being recognized as post-combination compensation expense over the associated service period. ASC 805 requires that the allocation of the purchase price to the assets acquired and liabilities assumed be based on their fair values as of the acquisition date. Ciena has made the determination of fair values using the best information available at the time. ASC 805 allows Ciena to adjust the provisional amounts recognized in the table below to be adjusted retrospectively for a period no later than one year from …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Tax Contingencies Ciena is subject to various tax liabilities arising in the ordinary course of business. Ciena does not expect that the ultimate settlement of these tax liabilities will have a material effect on its results of operations, financial position or cash flows. Litigation Ciena is subject to various legal proceedings, claims and other matters arising in the ordinary course of business, including those that relate to employment, commercial, tax and other regulatory matters. Ciena is also subject to intellectual property related claims, including claims against third parties that may involve contractual indemnification obligations on the part of Ciena. Ciena does not expect that the ultimate costs to resolve such matters will have a material effect on its results of operations, financial position or cash flows. Purchase Order Obligations Ciena has certain advanced orders for supply of certain long lead time components. As of November 1, 2025 , Ciena had $2.1 billion in outstanding purchase order commitments to contract manufacturers and component suppliers for inventory. In certain instances, Ciena is permitted to cancel, reschedule or adjust these orders. Consequently, only a portion of this amount relates to firm, non-cancelable and unconditional obligations.

CommitmentsAndContingenciesDisclosureTextBlock

OTHER EMPLOYEE BENEFIT PLANS Ciena has a Defined Contribution Pension Plan that covers a majority of its Canada-based employees. Total contributions (employee and employer) cannot exceed the lesser of 18% of participant earnings and an annual limit of CAD$35,390 (approximately $25,260 for 2025). This plan includes a required employer contribution of 1% for all participants and an employer matching contribution equal to 50% of the first 6% an employee contributes. During fiscal 2025, 2024 and 2023, Ciena made matching contributions of approximately CAD$11.9 million (approximately $8.5 million), CAD$11.6 million (approximately $8.3 million) and CAD$10.6 million (approximately $7.6 million), respectively. Ciena has a 401(k) defined contribution profit sharing plan that covers a majority of its United States-based employees. Participants may contribute up to 60% of base pay through pre-tax or Roth contributions, subject to certain limitations. The plan includes an employer matching contribution equal to 50% of the first 8% an employee contributes each pay period. Ciena may also make discretionary annual profit contributions up to the IRS regulated limit. Ciena has made no profit sharing contributions to date. During fiscal 2025, 2024 and 2023, Ciena made matching contributions of approximately $14.0 million, $11.0 million and $10.4 million, respectively.

CompensationAndEmployeeBenefitPlansTextBlock

SHORT-TERM AND LONG-TERM DEBT Outstanding Term Loan Payable Refinanced 2030 Term Loan Pursuant to a credit agreement, dated July 15, 2014, as amended (the Credit Agreement), by and among Ciena Corporation, the lenders party thereto and Bank of America, N.A., as administrative agent (the Administrative Agent), Ciena maintained a senior secured term loan with an outstanding aggregate principal amount, as of January 17, 2025, of approximately $1.16 billion and maturing on October 24, 2030 (the 2030 Term Loan). On January 17, 2025, Ciena Corporation, as borrower, and certain of its subsidiaries, as guarantors, entered into a Refinancing Amendment to the Credit Agreement with the lenders party thereto and the Administrative Agent (the Amendment), pursuant to which Ciena incurred a new single tranche of senior secured term loans in an aggregate principal amount of approximately $1.16 billion (the Refinanced 2030 Term Loan). The proceeds of the Refinanced 2030 Term Loan, together with cash on hand, were used to refinance in full the 2030 Term Loan, including accrued interest, and pay transaction fees and expenses. The Amendment amends the Credit Agreement and provides that the Refinanced 2030 Term Loan will, among other things: mature on October 24, 2030; amortize in equal quarterly installments in aggregate amounts equal to approximately 0.25% of the principal amount of the Refinanced 2030 Term Loan as of the Closing Date (as defined in the Credit Agreement), or $11.6 million annua …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The tables below set forth Cienas disaggregated revenue for the periods indicated (in thousands): Year Ended November 1, 2025 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 3,246,239 $ $ $ $ 3,246,239 Routing and Switching 430,138 430,138 Platform Software and Services 363,830 363,830 Blue Planet Automation Software and Services 115,547 115,547 Maintenance, Support, and Learning 317,247 317,247 Implementation 246,047 246,047 Advisory and Enablement 50,459 50,459 Total revenue by product line $ 3,676,377 $ 363,830 $ 115,547 $ 613,753 $ 4,769,507 Timing of revenue recognition: Products and services at a point in time $ 3,676,377 $ 103,906 $ 49,401 $ 48,579 $ 3,878,263 Products and services transferred over time 259,924 66,146 565,174 891,244 Total revenue by timing of revenue recognition $ 3,676,377 $ 363,830 $ 115,547 $ 613,753 $ 4,769,507 Year Ended November 2, 2024 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 2,642,563 $ $ $ $ 2,642,563 Routing and Switching 399,492 399,492 Platform Software and Services 358,062 358,062 Blue Planet Automation Software and Services 77,619 77,619 Maintenance, Support, and Learning 303,086 303,086 Implementation 184,358 184,358 Advisory and Enablement 49,775 49,775 Total revenue by product line $ 3,042,055 $ 358,062 $ 77,619 $ 537 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

SHARE-BASED COMPENSATION EXPENSE Ciena has outstanding equity awards issued under its 2017 Omnibus Incentive Plan (the 2017 Plan), and certain legacy equity plans and equity plans assumed as a result of previous acquisitions. Ciena also makes shares of its common stock available for purchase under the ESPP. Each of the 2017 Plan and the ESPP is described below. 2017 Plan The 2017 Plan has a ten-year term and authorizes the issuance of awards, including stock options, restricted stock units (RSUs), restricted stock, unrestricted stock, stock appreciation rights (SARs), and other equity and/or cash performance incentive awards to employees, directors and consultants of Ciena. Subject to certain restrictions, the Compensation Committee of the Board of Directors has broad discretion to establish the terms and conditions for awards under the 2017 Plan, including the number of shares, vesting conditions, and the required service or performance criteria. Options and SARs have a maximum term of ten years, and their exercise price may not be less than 100% of fair market value on the date of grant. Repricing of stock options and SARs is prohibited without stockholder approval. Certain change in control transactions may cause awards granted under the 2017 Plan to vest, unless the awards are continued or substituted for in connection with the transaction. The 2017 Plan authorizes and reserves 21.1 million shares for issuance. The number of shares available under the 2017 Plan is also in …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS As of the dates indicated, the following tables summarize the fair value of assets and liabilities that were recorded at fair value on a recurring basis (in thousands): November 1, 2025 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 713,707 $ $ $ 713,707 Bond mutual fund 117,931 117,931 Time deposits 74,990 74,990 Deferred compensation plan assets 21,179 21,179 U.S. government obligations 147,770 147,770 Corporate debt securities 120,068 120,068 Foreign currency forward contracts 3,236 3,236 Total assets measured at fair value $ 927,807 $ 271,074 $ $ 1,198,881 Liabilities: Foreign currency forward contracts $ $ 6,314 $ $ 6,314 Forward starting interest rate swaps 1,345 1,345 Total liabilities measured at fair value $ $ 7,659 $ $ 7,659 November 2, 2024 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 636,097 $ $ $ 636,097 Bond mutual fund 112,703 112,703 Time deposits 92,804 92,804 Deferred compensation plan assets 16,519 16,519 U.S. government obligations 286,181 286,181 Commercial paper 111,143 111,143 Foreign currency forward contracts 2,149 2,149 Interest rate swaps 11,777 11,777 Total assets measured at fair value $ 858,123 $ 411,250 $ $ 1,269,373 Liabilities: Foreign currency forward contracts $ $ 9,155 $ $ 9,155 Total liabilities measured at fair value $ $ 9,155 $ $ 9,155 As of the dates indicated, the assets and liabilities above were presented on Cienas Consolidated Balance Sheets as follows (in thousands): November 1, 202 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL The following table presents the goodwill allocated to Cienas operating segments as of November 1, 2025 and November 2, 2024 , as well as the changes to goodwill during fiscal 2025 (in thousands): Balance at November 2, 2024 Acquisitions Translation Balance at November 1, 2025 Platform Software and Services $ 156,191 $ $ $ 156,191 Blue Planet Automation Software and Services 89,049 89,049 Networking Platforms 199,467 76,539 (42) 275,964 Total $ 444,707 $ 76,539 $ (42) $ 521,204 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES For the periods indicated, the provision for income taxes consists of the following (in thousands): Year Ended November 1, 2025 November 2, 2024 October 28, 2023 Provision for income taxes: Current: Federal $ 14,881 $ 70,208 $ 36,537 State 4,208 14,106 18,860 Foreign 37,034 28,390 28,281 Total current 56,123 112,704 83,678 Deferred: Federal (36,359) (52,300) (8,010) State 13,643 (4,868) (17,354) Foreign (458) (19,642) 10,512 Total deferred (23,174) (76,810) (14,852) Provision for income taxes $ 32,949 $ 35,894 $ 68,826 For the periods indicated, income before provision for income taxes consists of the following (in thousands): Year Ended November 1, 2025 November 2, 2024 October 28, 2023 United States $ (22,804) $ 244 $ 93,682 Foreign 179,091 119,606 229,971 Total $ 156,287 $ 119,850 $ 323,653 Cienas foreign income tax as a percentage of foreign income may appear disproportionate compared to the expected tax based on the U.S. federal statutory rate and is dependent on the mix of earnings and tax rates in foreign jurisdictions. For the periods indicated, the tax provision reconciles to the amount computed by multiplying income before income taxes by the U.S. federal statutory rate of 21% for fiscal 2025, fiscal 2024 and fiscal 2023 as follows: Year Ended November 1, 2025 November 2, 2024 October 28, 2023 Provision at statutory rate 21.00 % 21.00 % 21.00 % State taxes 1.03 % 5.60 % 1.65 % Withholding and other foreign taxes 5.87 % 3.53 % (0.09) % Research and devel …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES Ciena leases approximately 1.2 million square feet of facilities globally. Cienas corporate headquarters are located in Maryland, United States. Cienas largest facilities are research and development centers located in Ottawa, Canada and Gurgaon, India. Office facilities are leased under various non-cancelable operating or finance leases. Ciena's current leases have remaining terms that vary up to 10 years. Certain leases provide for options to extend up to 10 years and/or options to terminate within 3 years. Leases included on the Consolidated Balance Sheets for the fiscal periods indicated were as follows (in thousands): Classification Balance at November 1, 2025 Balance at November 2, 2024 Operating leases (1) Operating ROU Assets Operating right-of-use assets $ 38,613 $ 27,417 Operating lease liabilities Operating lease liabilities and Long-term operating lease liabilities $ 46,472 $ 39,562 Finance leases: Buildings, gross Equipment, building, furniture and fixtures, net $ 67,242 $ 67,517 Less: accumulated depreciation Equipment, building, furniture and fixtures, net (38,348) (34,206) Buildings, net $ 28,894 $ 33,311 Finance lease liabilities Accrued liabilities and other short-term obligations and other long-term obligations $ 43,344 $ 47,917 (1) Ciena added two new ten-year operating leases to its portfolio in the second quarter of fiscal 2025. The addition of these operating leases increased both operating right-of-use (ROU) assets and lease liabilities for fisc …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Newly Issued Accounting Standards - Effective In November 2023, the FASB issued ASU No. 2023-07 (ASU 2023-07), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. Ciena adopted this standard with its fiscal 2025 Annual Report on Form 10-K with comparative periods updated to reflect additional disclosures. See Note 24 for additional information. Newly Issued Accounting Standards - Not Yet Effective In December 2023, the FASB issued ASU No. 2023-09 (ASU 2023-09), Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures to decision makers. ASU 2023-09 is effective for annual periods beginning in fiscal 2026 and will result in changes to certain of its income tax disclosures including substantially more information on a disaggregated basis, but it does not affect recognition or measurement of income taxes and therefore is not expected to have a material effect on our consolidated financial statements. The amendments are applied on a prospective basis; however, retrospective application is permitted. In November 2024, the FASB issued ASU No. 2024-03 (ASU 2024-03), Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) to improve financial reporting by requiring that public business entities disclose a …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

SIGNIFICANT ASSET IMPAIRMENT AND RESTRUCTURING COSTS Ciena regularly monitors its spending to optimize operating expenses and to ensure that its strategic investments are aligned with its highest-growth demand opportunities. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in accrued liabilities and other short-term obligations on Cienas Consolidated Balance Sheets, for the fiscal years indicated (in thousands): Workforce reduction Other restructuring activities Total Balance at October 29, 2022 $ 1,215 $ 4,620 $ 5,835 Charges 6,885 (1) 16,949 (2) 23,834 Cash payments (6,187) (21,569) (27,756) Balance at October 28, 2023 1,913 1,913 Charges 15,408 (1) 9,184 (2) 24,592 Cash payments (15,394) (9,184) (24,578) Balance at November 2, 2024 1,927 1,927 Charges 18,622 (1) 93,491 (3) 112,113 Cash payments (12,113) (93,491) (105,604) Balance at November 1, 2025 $ 8,436 $ $ 8,436 Current restructuring liabilities $ 8,436 $ $ 8,436 _________________________________ (1) Reflects employee costs associated with global workforce reductions of approximately 380, 420 and 120 employees during fiscal 2025, 2024 and 2023, respectively, as part of a business optimization strategy to reduce operating costs. (2) Primarily represents the redesign of certain business processes associated with Cienas supply chain and distribution structure, and costs related to restructured real estate facilities. (3) Primarily related to …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Segment and Product Line Disaggregation of Revenue Cienas disaggregated segment and product line revenue as presented below depicts the nature, amount, and timing of revenue and cash flows for similar groupings of Cienas various offerings. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies may differ for each of its product categories, resulting in different economic risk profiles for each category. Effective as of the fourth quarter of fiscal 2025, Ciena renamed (i) its Maintenance Support and Training product line to Maintenance, Support, and Learning, (ii) its Installation and Deployment product line to Implementation, and (iii) its Consulting and Network Design product line to Advisory and Enablement. These changes, affecting only the presentation of such information, were made on a prospective basis and do not impact comparability of previous financial results. However, references to the prior reported product lines have been changed herein to the new names described above. Ciena has the following operating segments for reporting purposes: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services. See Note 24 below. The tables below set forth Cienas disaggregated revenue for the periods indicated (in thousands): Year Ended November 1, 2025 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT AND ENTITY WIDE DISCLOSURES Operating segments are defined as components of an enterprise that engage in business activities that earn revenue and incur expense, for which discrete financial information is available, and for which such information is evaluated regularly by the chief operating decision maker for purposes of allocating resources and assessing performance. Ciena has the following operating segments for reporting purposes: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services. Cienas chief operating decision maker (CODM) is its chief executive officer, Gary Smith, who evaluates Cienas performance and allocates resources based on segment profit (loss) as compared to annual targets for these four operating segments. Segment Profit (Loss) The table below sets forth Cienas segment profit (loss) and the reconciliation to consolidated net income for the respective periods indicated (in thousands). The CODM excludes the following items in his assessment of performance of the operating segments: selling and marketing costs; general and administrative costs; significant asset impairments and restructuring costs; share-based compensation expense, amortization of intangible assets; acquisition and integration costs; interest and other income, net; interest expense; loss on extinguishment and modification of debt; and provision for income taxes. Effective as of the fourth quarter of …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS EQUITY Stock Repurchase Program and Accelerated Share Repurchase Agreement On December 9, 2021, Ciena announced that its Board of Directors replaced its previously authorized program with a program to repurchase up to $1.0 billion of its common stock. During fiscal 2023, Ciena repurchased 5.7 million shares of its common stock under this program, for an aggregate purchase price of $250.0 million at an average price of $44.08 per share. During fiscal 2024, Ciena repurchased an additional 4.5 million shares of its common stock, for an aggregate purchase price of $250.0 million at an average price of $55.07 per share, which completed the authorized repurchases contemplated under the program. In aggregate, Ciena repurchased 18.6 million shares for an aggregate purchase price of $1.0 billion, at an average price of $53.63 per share. On October 2, 2024, Ciena announced that its Board of Directors authorized a program to repurchase up to $1.0 billion of its common stock, commencing in Cienas fiscal year 2025 and continuing through the end of Cienas fiscal year 2027. Ciena may purchase shares at managements discretion in the open market, in privately negotiated transactions, in transactions structured through investment banking institutions, or a combination of the foregoing. Ciena may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The amount and timing of repurchases are subject to a variety of fac …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS Stock Repurchase Program From the end of the fourth quarter of fiscal 2025 through December 5, 2025, Ciena repurchased 162,347 shares of its common stock for an aggregate purchase price of $31.7 million at an average price of $195.12 per share, inclusive of repurchases pending settlement under its current stock repurchase program. As of December 5, 2025, Ciena has an aggregate of $638.6 million of authorized funds remaining under this repurchase program.

SubsequentEventsTextBlock

COMMITMENTS AND CONTINGENCIES Tax Contingencies Ciena is subject to various tax contingencies arising in the ordinary course of business. Ciena does not expect that the ultimate settlement of these contingencies will have a material effect on its financial position or cash flows. Share-based compensation expense impacts Cienas tax rate. These deductions are valued at vesting for tax purposes and can increase or decrease the effective tax rate in the period in which they vest. Litigation Ciena is subject to various legal proceedings, claims, and other matters arising in the ordinary course of business, including those that relate to employment, commercial, tax, and other regulatory matters. Ciena is also subject to intellectual property-related claims, including claims against third parties that may involve contractual indemnification obligations on the part of Ciena. Ciena does not expect that the ultimate costs to resolve such matters will have a material effect on its results of operations, financial position, or cash flows. Purchase Order Obligations Ciena has certain advanced orders for supply of certain long lead time components. As of August 1, 2026, Ciena had $3.3 billion in outstanding purchase order commitments to contract manufacturers and component suppliers for inventory. In certain instances, Ciena is permitted to cancel, reschedule or adjust a portion of these orders. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

SHORT-TERM AND LONG-TERM DEBT Outstanding Convertible Notes Payable 2031 Convertible Senior Notes On June 11, 2026, Ciena closed a private offering of $2.88 billion aggregate principal amount of 0.00% Convertible Senior Notes due 2031 (the 2031 Notes) to qualified buyers, which includes $375.0 million aggregate principal amount of 2031 Notes issued in connection with the initial purchasers full exercise of their option to acquire additional 2031 Notes, pursuant to an indenture, dated June 11, 2026 (the Indenture). The 2031 Notes will not bear regular interest and the principal amount of the 2031 Notes will not accrete. The 2031 Notes will mature on September 15, 2031 unless earlier converted, redeemed or repurchased. Ciena intends to use the net proceeds in excess of the repayment of the Refinanced 2030 Term Loan described below, related fees, and expenses for general corporate purposes and investments to enhance supply chain capacity. In addition, a portion of the proceeds from the 2031 Notes were used to repurchase $140.0 million, or approximately 0.3 million shares, of Cienas common stock pursuant to its existing stock repurchase program concurrent to settlement. The initial conversion rate for the 2031 Notes is 1.3393 shares of Cienas common stock per $1,000 principal amount of 2031 Notes, which is equivalent to an initial conversion price of approximately $746.66 per share. If certain corporate events occur prior to the maturity date, or if Ciena delivers a notice of red …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The tables below set forth Cienas disaggregated revenue for the periods indicated (in thousands): Quarter Ended August 1, 2026 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 1,191,307 $ $ $ $ 1,191,307 Routing and Switching 164,368 164,368 Platform Software and Services 98,657 98,657 Blue Planet Automation Software and Services 23,205 23,205 Maintenance, Support, and Learning 89,851 89,851 Implementation 87,871 87,871 Advisory and Enablement 15,870 15,870 Total revenue by product line $ 1,355,675 $ 98,657 $ 23,205 $ 193,592 $ 1,671,129 Timing of revenue recognition: Products and services at a point in time $ 1,355,675 $ 30,403 $ 4,955 $ 36,183 $ 1,427,216 Services transferred over time 68,254 18,250 157,409 243,913 Total revenue by timing of revenue recognition $ 1,355,675 $ 98,657 $ 23,205 $ 193,592 $ 1,671,129 Quarter Ended August 2, 2025 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 815,497 $ $ $ $ 815,497 Routing and Switching 125,857 125,857 Platform Software and Services 89,961 89,961 Blue Planet Automation Software and Services 27,805 27,805 Maintenance, Support, and Learning 80,743 80,743 Implementation 65,878 65,878 Advisory and Enablement 13,644 13,644 Total revenue by product line $ 941,354 $ 89,961 $ 27,805 $ 160,265 $ 1,219,385 Timing of revenue reco …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

SHARE-BASED COMPENSATION EXPENSE The following table summarizes share-based compensation expense for the periods indicated (in thousands): Quarter Ended Nine Months Ended August 1, August 2, August 1, August 2, 2026 2025 2026 2025 Products $ 2,175 $ 2,027 $ 6,007 $ 5,810 Services 4,666 3,941 13,195 11,327 Share-based compensation expense included in cost of goods sold 6,841 5,968 19,202 17,137 Research and development 20,173 16,749 55,353 48,007 Selling and marketing 16,623 13,277 47,863 38,523 General and administrative 14,241 11,008 40,760 32,176 Share-based compensation expense included in operating expense 51,037 41,034 143,976 118,706 Share-based compensation expense capitalized in inventory, net (1) (74) (147) Total share-based compensation expense $ 57,878 $ 46,928 $ 163,178 $ 135,696 (1) Effective the beginning of fiscal 2026, Ciena will no longer be calculating share-based compensation capitalized in inventory due to immateriality. As of August 1, 2026, total unrecognized share-based compensation expense was $394.9 million , which relates to unvested stock unit awards and is expected to be recognized over a weighted-average period of 1.52 years. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS As of the dates indicated, the following tables summarize the assets and liabilities that were recorded at fair value on a recurring basis (in thousands): August 1, 2026 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 1,877,098 $ $ $ 1,877,098 Bond mutual fund 121,272 121,272 Time deposits 93,087 93,087 Deferred compensation plan assets 27,357 27,357 U.S. government obligations 183,834 183,834 Corporate debt securities 222,417 222,417 Foreign currency forward contracts 4,322 4,322 Total assets measured at fair value $ 2,118,814 $ 410,573 $ $ 2,529,387 Liabilities: Foreign currency forward contracts $ $ 11,003 $ $ 11,003 Total liabilities measured at fair value $ $ 11,003 $ $ 11,003 November 1, 2025 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 713,707 $ $ $ 713,707 Bond mutual fund 117,931 117,931 Time deposits 74,990 74,990 Deferred compensation plan assets 21,179 21,179 U.S. government obligations 147,770 147,770 Corporate debt securities 120,068 120,068 Foreign currency forward contracts 3,236 3,236 Total assets measured at fair value $ 927,807 $ 271,074 $ $ 1,198,881 Liabilities: Foreign currency forward contracts $ $ 6,314 $ $ 6,314 Forward starting interest rate swaps 1,345 1,345 Total liabilities measured at fair value $ $ 7,659 $ $ 7,659 As of the dates indicated, the assets and liabilities above were presented on Cienas Condensed Consolidated Balance Sheets as follows (in thousands): August 1, 2026 Level 1 Level 2 Level …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES The effective tax rate for the third quarter and first nine months of fiscal 2026 was lower than the effective tax rate for the third quarter and first nine months of fiscal 2025. The decrease was primarily due to an income tax benefit for share-based compensation expense and a change in mix of earnings in jurisdictions with lower tax rates.

IncomeTaxDisclosureTextBlock

Accounting Standards - Not Yet Effective In December 2023, the FASB issued ASU No. 2023-09 (ASU 2023-09), Income Taxes (Topic 740): Improvement to Income Tax Disclosures , to enhance the transparency and decision usefulness of income tax disclosures to decision makers. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, and will result in changes to certain income tax disclosures including substantially more information on a disaggregated basis, but it does not affect recognition or measurement of income taxes and therefore is not expected to have a material effect on our consolidated financial statements. The amendments are applied on a prospective basis; however, retrospective application is permitted. In November 2024, the FASB issued ASU No. 2024-03 (ASU 2024-03), Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40), to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027; however, early adoption is permitted. ASU 2024-03 allows for adoption using either a prospective or retrospective method. Ciena is currently evaluating the impact of this ASU on its consolidated financial statements and related discl …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

SIGNIFICANT ASSET IMPAIRMENT AND RESTRUCTURING COSTS Restructuring Costs Ciena regularly monitors its spending to optimize operating expenses and to ensure that its strategic investments are aligned with its highest-growth demand opportunities. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in accrued liabilities and other short-term obligations on the Condensed Consolidated Balance Sheets for the nine months ended August 1, 2026 (in thousands): Workforce restructuring Other restructuring activities Total Balance at November 1, 2025 $ 8,436 $ $ 8,436 Charges 1,815 1,375 (1) 3,190 Cash payments (9,712) (1,375) (11,087) Balance at August 1, 2026 $ 539 $ $ 539 Current restructuring liabilities $ 539 $ $ 539 (1) Primarily represents costs related to restructured real estate facilities. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in accrued liabilities and other short-term obligations on the Condensed Consolidated Balance Sheets for the nine months ended August 2, 2025 (in thousands): Workforce restructuring Other restructuring activities Total Balance at November 2, 2024 $ 1,927 $ $ 1,927 Charges 1,996 3,266 (1) 5,262 Cash payments (3,389) (3,266) (6,655) Balance at August 2, 2025 $ 534 $ $ 534 Current restructuring liabilities $ 534 $ $ 534 (1) Primarily represents costs related to restructured real estate facili …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Segment and Product Line Disaggregation of Revenue Cienas disaggregated segment and product line revenue as presented below depicts the nature, amount, and timing of revenue and cash flows for similar groupings of Cienas various offerings. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies may differ for each of its product categories, resulting in different economic risk profiles for each category. Ciena has the following operating segments for reporting purposes: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services. See Note 19 below. The tables below set forth Cienas disaggregated revenue for the periods indicated (in thousands): Quarter Ended August 1, 2026 Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total Product lines: Optical Networking $ 1,191,307 $ $ $ $ 1,191,307 Routing and Switching 164,368 164,368 Platform Software and Services 98,657 98,657 Blue Planet Automation Software and Services 23,205 23,205 Maintenance, Support, and Learning 89,851 89,851 Implementation 87,871 87,871 Advisory and Enablement 15,870 15,870 Total revenue by product line $ 1,355,675 $ 98,657 $ 23,205 $ 193,592 $ 1,671,129 Timing of revenue recognition: Products and services at a point in time $ 1,355,675 $ 30,403 $ 4,955 $ 36,183 $ 1,427,216 Services transferred over time 68,254 18,250 157 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENTS AND ENTITY-WIDE DISCLOSURES Operating segments are defined as components of an enterprise that engage in business activities that earn revenue and incur expense for which discrete financial information is available, and for which such information is evaluated regularly by the chief operating decision maker (CODM) for purposes of allocating resources and assessing performance. Ciena has the following operating segments for reporting purposes: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services. Cienas CODM is its Chief Executive Officer, Gary Smith, who evaluates Cienas performance and allocates resources based on segment profit (loss) as compared to annual targets for these four operating segments. Segment Profit (Loss) The table below sets forth Cienas segment profit (loss) and the reconciliations to consolidated net income for the respective periods indicated (in thousands). The CODM excludes the following items in his assessment of performance of the operating segments: selling and marketing costs; general and administrative costs, significant asset impairments and restructuring costs; share-based compensation expense, amortization of intangible assets; acquisition and integration costs; interest and other income, net; interest expense; loss on extinguishment and modification of debt; and provision for income taxes. Quarter Ended Nine Months Ended August 1, August 2, August 1, …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SIGNIFICANT ACCOUNTING POLICIES There have been no material changes to Cienas significant accounting policies, compared to the accounting policies described in Note 1, Ciena Corporation and Significant Accounting Policies and Estimates, in Notes to Consolidated Financial Statements in Item 8 of Part II of the 2025 Annual Report. Accounting Standards - Not Yet Effective In December 2023, the FASB issued ASU No. 2023-09 (ASU 2023-09), Income Taxes (Topic 740): Improvement to Income Tax Disclosures , to enhance the transparency and decision usefulness of income tax disclosures to decision makers. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, and will result in changes to certain income tax disclosures including substantially more information on a disaggregated basis, but it does not affect recognition or measurement of income taxes and therefore is not expected to have a material effect on our consolidated financial statements. The amendments are applied on a prospective basis; however, retrospective application is permitted. In November 2024, the FASB issued ASU No. 2024-03 (ASU 2024-03), Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40), to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. ASU 2024-03 is effective for annual periods b …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS EQUITY Stock Repurchase Program On October 2, 2024, Ciena announced that its Board of Directors authorized a three-year program to repurchase up to $1.0 billion of its common stock, commencing in fiscal 2025 and continuing through the end of fiscal 2027. During the first nine months of fiscal 2026, Ciena repurchased approximately 1.0 million shares of its common stock for an aggregate purchase price of approximately $335.3 million, which equates to an average price of $352.06 per share. As of August 1, 2026, Ciena has (i) repurchased 4.9 million shares for an aggregate purchase price of $665.0 million at an average price of $135.55 per share and (ii) has an aggregate of $335.0 million authorized and remaining under its stock repurchase program. Ciena is required to allocate the purchase price for the shares of Cienas stock repurchased as a reduction of common stock and additional paid-in capital. Stock Repurchases Related to Stock Unit Tax Withholdings Ciena repurchases shares of its common stock to satisfy employee tax withholding obligations due upon vesting of stock unit awards. The related purchase price of $278.3 million for the shares of Cienas stock repurchased during the first nine months of fiscal 2026 is reflected as a reduction to stockholders equity. Ciena is required to allocate the purchase price of the repurchased shares as a reduction of common stock and additional paid-in capital. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS Stock Repurchase Program From the end of the third quarter of fiscal 2026 through August 28, 2026, Ciena repurchased 88,896 shares of its common stock for an aggregate purchase price of $36.0 million at an average price of $404.52 per share, inclusive of repurchases pending settlement under its current stock repurchase program. As of August 28, 2026, Ciena has an aggregate of $299.0 million of authorized funds remaining under this repurchase program.

SubsequentEventsTextBlock