Ciena Reports Fiscal Fourth Quarter 2025 and Year-End Financial Results
HANOVER, Md.--( BUSINESS WIRE)-- Ciena ® Corporation (NYSE: CIEN) today announced financial results for its fiscal fourth quarter and year ended November 1, 2025.
"Our record fiscal fourth quarter and full-year performance reinforces our position as the global leader in high-speed connectivity with an expanding role in the AI ecosystem," said Gary Smith, president and CEO, Ciena. "Looking ahead, we are confident in our growth trajectory over the coming years, driven by durable demand from our cloud and service provider customers and a growing set of opportunities inside and around the data center."
Performance Summary for Fiscal Fourth Quarter and Year Ended November 1, 2025
Revenue:
Net Income per diluted share:
The tables below (in millions, except percentage data) provide comparisons of certain quarterly and annual 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
November 1,
November 2,
Change
November 1,
November 2,
Change
2025
2024
Y-T-Y*
2025
2024
Y-T-Y*
Revenue
$
1,352.0
$
1,124.1
20.3
%
$
1,352.0
$
1,124.1
20.3
%
Gross margin
42.7
%
40.9
%
1.8
%
43.4
%
41.6
%
1.8
%
Operating expense
$
566.7
$
400.8
41.4
%
$
408.7
$
354.9
15.2
%
Operating margin
0.8
%
5.3
%
(4.5
)%
13.2
%
10.0
%
3.2
%
EBITDA
$
47.8
$
93.0
(48.6
)%
$
205.5
$
136.7
50.3
%
GAAP Results (unaudited)
Non-GAAP Results (unaudited)
Year Ended
Period
Year Ended
Period
November 1,
November 2,
Change
November 1,
November 2,
Change
2025
2024
Y-T-Y*
2025
2024
Y-T-Y*
Revenue
$
4,769.5
$
4,014.9
18.8
%
$
4,769.5
$
4,014.9
18.8
%
Gross margin
42.0
%
42.8
%
(0.8
)%
42.7
%
43.6
%
(0.9
)%
Operating expense
$
1,807.4
$
1,553.0
16.4
%
$
1,505.8
$
1,361.7
10.6
%
Operating margin
4.1
%
4.1
%
—
%
11.2
%
9.7
%
1.5
%
EBITDA
$
337.9
$
300.1
12.6
%
$
636.7
$
481.0
32.4
%
* Denotes % change, or in the case of margin, absolute change
Business Outlook
"Our results reflect Ciena’s market momentum within a strong demand environment and our commitment to financial discipline, delivering strong top and bottom line performance that exceeded our guidance for the fourth quarter,” said Marc Graff, CFO of Ciena. “With our growing operating leverage and strong cash generation and balance sheet, we are well-positioned to deliver value for our customers and shareholders in 2026."
Ciena expects fiscal year 2026 to include:
Ciena expects fiscal first quarter 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 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
Financial Performance by Segment
Revenue by Segment (unaudited)
Quarter Ended
November 1, 2025
November 2, 2024
Revenue
%**
Revenue
%**
Networking Platforms
Optical Networking
$
929.2
68.7
$
779.6
69.4
Routing and Switching
118.4
8.8
79.4
7.0
Total Networking Platforms
1,047.6
77.5
859.0
76.4
Platform Software and Services
93.3
6.9
99.6
8.9
Blue Planet Automation Software and Services
33.8
2.5
23.5
2.1
Global Services 1
Maintenance, Support, and Learning
82.5
6.1
77.2
6.9
Implementation
74.3
5.5
51.4
4.5
Advisory and Enablement
20.5
1.5
13.4
1.2
Total Global Services
177.3
13.1
142.0
12.6
Total
$
1,352.0
100.0
$
1,124.1
100.0
Revenue by Segment (unaudited)
Year Ended
November 1, 2025
November 2, 2024
Revenue
%**
Revenue
%**
Networking Platforms
Optical Networking
$
3,246.3
68.1
$
2,642.6
65.8
Routing and Switching
430.1
9.0
399.5
10.0
Total Networking Platforms
3,676.4
77.1
3,042.1
75.8
Platform Software and Services
363.8
7.6
358.0
8.9
Blue Planet Automation Software and Services
115.5
2.4
77.6
2.0
Global Services 1
Maintenance, Support, and Learning
317.2
6.7
303.1
7.5
Implementation
246.1
5.2
184.3
4.6
Advisory and Enablement
50.5
1.0
49.8
1.2
Total Global Services
613.8
12.9
537.2
13.3
Total
$
4,769.5
100.0
$
4,014.9
100.0
** Denotes % of total revenue
1 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, the references to the prior reported product lines have been changed herein to the new names above.
Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Fourth Quarter 2025 Results
Today, Thursday, December 11, 2025, 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 fourth quarter 2025 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 statements in the "Summary" and "Business Outlook" sections of this press release and "Our record fiscal fourth quarter and full-year performance underscores our focused execution and solidifies our position as a global leader in high-speed connectivity with an expanding role in the evolving AI ecosystem. Looking ahead, we are increasingly confident in our growth trajectory over the coming years, driven by accelerating, durable demand from our cloud and service provider customers and a growing set of opportunities inside and around the data center." and “With our growing operating leverage, and strong cash generation and balance sheet, we are well-positioned to deliver value for our customers and shareholders in 2026."
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 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 Ciena's Quarterly Report on Form 10-Q filed with the SEC on September 4, 2025 and its Annual Report on Form 10-K 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 and adjusted (non-GAAP) operating expense guidance measures to the corresponding gross profit and gross profit percentage, and operating expense 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 (NYSE: CIEN) is the global leader in high-speed connectivity. We build the world’s most adaptive 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
Year Ended
November 1,
November 2,
November 1,
November 2,
2025
2024
2025
2024
Revenue:
Products
$
1,092,451
$
892,425
$
3,822,618
$
3,159,021
Services
259,533
231,687
946,889
855,934
Total revenue
1,351,984
1,124,112
4,769,507
4,014,955
Cost of goods sold:
Products
630,150
545,580
2,250,966
1,861,317
Services
144,655
118,510
513,624
434,048
Total cost of goods sold
774,805
664,090
2,764,590
2,295,365
Gross profit
577,179
460,022
2,004,917
1,719,590
Operating expenses:
Research and development
228,900
195,960
848,329
767,497
Selling and marketing
156,420
136,919
581,331
510,668
General and administrative
67,257
58,143
238,707
220,647
Significant asset impairments and restructuring costs
106,851
2,605
112,113
24,592
Amortization of intangible assets
6,112
7,185
25,758
29,569
Acquisition and integration costs
1,148
—
1,148
—
Total operating expenses
566,688
400,812
1,807,386
1,552,973
Income from operations
10,491
59,210
197,531
166,617
Interest and other income, net
14,349
13,801
48,888
50,261
Interest expense
(21,982
)
(24,990
)
(89,403
)
(97,028
)
Loss on extinguishment and modification of debt
—
—
(729
)
—
Income before income taxes
2,858
48,021
156,287
119,850
Provision (benefit) for income taxes
(16,631
)
10,993
32,949
35,894
Net income
$
19,489
$
37,028
$
123,338
$
83,956
Net Income per Common Share
Basic net income per common share
$
0.14
$
0.26
$
0.87
$
0.58
Diluted net income per potential common share
$
0.13
$
0.25
$
0.85
$
0.58
Weighted average basic common shares outstanding
141,527
144,240
142,221
144,715
Weighted average dilutive potential common shares outstanding 1
145,470
146,487
145,248
145,964
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) 3.9 million and 3.0 million for the fourth quarter and year ended fiscal 2025, respectively; and (ii) 2.2 million and 1.2 million for the fourth quarter and year ended fiscal 2024, respectively.
CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
November 1,
2025
November 2,
2024
ASSETS
Current assets:
Cash and cash equivalents
$
1,091,952
$
934,863
Short-term investments
216,148
316,343
Accounts receivable, net
975,856
908,597
Inventories, net
826,235
820,430
Prepaid expenses and other
455,316
564,183
Total current assets
3,565,507
3,544,416
Long-term investments
57,142
80,920
Equipment, building, furniture and fixtures, net
386,779
337,722
Operating lease right-of-use assets
38,613
27,417
Goodwill
521,204
444,707
Other intangible assets, net
224,210
165,020
Deferred tax asset, net
884,889
886,441
Other long-term assets
186,323
154,694
Total assets
$
5,864,667
$
5,641,337
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
542,841
$
423,401
Accrued liabilities and other short-term obligations
531,081
393,905
Deferred revenue
208,936
156,379
Operating lease liabilities
13,956
14,455
Current portion of long-term debt
11,580
11,700
Total current liabilities
1,308,394
999,840
Long-term deferred revenue
94,850
81,240
Other long-term obligations
175,426
185,938
Long-term operating lease liabilities
32,516
25,107
Long-term debt, net
1,524,158
1,533,074
Total liabilities
3,135,344
2,825,199
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; 141,016,300 and 142,656,116 shares issued and outstanding
1,410
1,427
Additional paid-in capital
5,953,057
6,154,869
Accumulated other comprehensive loss
(55,035
)
(46,711
)
Accumulated deficit
(3,170,109
)
(3,293,447
)
Total stockholders’ equity
2,729,323
2,816,138
Total liabilities and stockholders’ equity
$
5,864,667
$
5,641,337
CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Year Ended
November 1,
November 2,
2025
2024
Cash flows provided by operating activities:
Net income
$
123,338
$
83,956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements
104,133
92,846
Abandonment of acquired in-process research and development
89,100
—
Share-based compensation expense
184,525
156,404
Amortization of intangible assets
36,205
40,624
Deferred taxes
(23,173
)
(76,810
)
Provision for inventory excess and obsolescence
48,424
77,341
Provision for warranty
24,442
25,643
Other
(736
)
11,768
Changes in assets and liabilities:
Accounts receivable
(98,743
)
80,313
Inventories
(53,602
)
153,021
Prepaid expenses and other
86,204
(198,910
)
Operating lease right-of-use assets
11,613
11,837
Accounts payable, accruals and other obligations
226,486
64,255
Deferred revenue
63,760
9,884
Short and long-term operating lease liabilities
(15,883
)
(17,640
)
Net cash provided by operating activities
806,093
514,532
Cash flows used in investing activities:
Payments for equipment, furniture, and fixtures
(140,801
)
(136,641
)
Purchases of investments
(214,162
)
(287,536
)
Proceeds from sales and maturities of investments
348,579
140,836
Settlement of foreign currency forward contracts, net
(4,015
)
(1,454
)
Purchase of equity investments
—
(21,682
)
Acquisition of business, net of cash acquired
(231,100
)
—
Net cash used in investing activities
(241,499
)
(306,477
)
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
(11,580
)
(11,700
)
Payment of debt issuance costs
(12
)
(2,554
)
Payment of finance lease obligations
(4,380
)
(4,029
)
Shares repurchased for tax withholdings on vesting of stock unit awards
(91,315
)
(46,567
)
Repurchases of common stock - repurchase program, net
(334,507
)
(254,502
)
Proceeds from issuance of common stock
35,876
34,291
Net cash used in financing activities
(405,918
)
(285,061
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(1,505
)
1,246
Net increase (decrease) in cash, cash equivalents and restricted cash
157,171
(75,760
)
Cash, cash equivalents and restricted cash at beginning of period
935,026
1,010,786
Cash, cash equivalents and restricted cash at end of period
$
1,092,197
$
935,026
Supplemental disclosure of cash flow information
Cash paid during the period for interest, net
$
85,217
$
92,515
Cash paid during the period for income taxes, net
$
113,608
$
54,956
Operating lease payments
$
17,840
$
19,452
Non-cash investing and financing activities
Purchase of equipment in accounts payable
$
17,449
$
14,682
Repurchase of common stock in accrued liabilities from repurchase program, net
$
2,579
$
6,172
Operating right-of-use assets subject to lease liability
$
23,586
$
6,912
APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements
(in thousands, except per share data) (unaudited)
Quarter Ended
Year Ended
November 1,
November 2,
November 1,
November 2,
2025
2024
2025
2024
Gross Profit Reconciliation (GAAP/non-GAAP)
GAAP gross profit
$
577,179
$
460,022
$
2,004,917
$
1,719,590
Share-based compensation-products
1,964
1,736
7,774
6,474
Share-based compensation-services
3,857
3,257
15,184
12,743
Amortization of intangible assets
3,750
2,764
10,447
11,055
Total adjustments related to gross profit
9,571
7,757
33,405
30,272
Adjusted (non-GAAP) gross profit
$
586,750
$
467,779
$
2,038,322
$
1,749,862
Adjusted (non-GAAP) gross profit percentage
43.4
%
41.6
%
42.7
%
43.6
%
Operating Expense Reconciliation (GAAP/non-GAAP)
GAAP operating expense
$
566,688
$
400,812
$
1,807,386
$
1,552,973
Share-based compensation-research and development
16,274
14,065
64,281
54,129
Share-based compensation-sales and marketing
13,543
11,168
52,066
42,954
Share-based compensation-general and administrative
13,248
10,842
45,424
40,053
Significant asset impairments and restructuring costs
106,851
2,605
112,113
24,592
Amortization of intangible assets
6,112
7,185
25,758
29,569
Acquisition and integration costs
1,148
—
1,148
—
Holdback arrangement
802
—
802
—
Total adjustments related to operating expense
157,978
45,865
301,592
191,297
Adjusted (non-GAAP) operating expense
$
408,710
$
354,947
$
1,505,794
$
1,361,676
Income from Operations Reconciliation (GAAP/non-GAAP)
GAAP income from operations
$
10,491
$
59,210
$
197,531
$
166,617
Total adjustments related to gross profit
9,571
7,757
33,405
30,272
Total adjustments related to operating expense
157,978
45,865
301,592
191,297
Total adjustments related to income from operations
167,549
53,622
334,997
221,569
Adjusted (non-GAAP) income from operations
$
178,040
$
112,832
$
532,528
$
388,186
Adjusted (non-GAAP) operating margin percentage
13.2
%
10.0
%
11.2
%
9.7
%
Net Income Reconciliation (GAAP/non-GAAP)
GAAP net income
$
19,489
$
37,028
$
123,338
$
83,956
Exclude GAAP provision (benefit) for income taxes
(16,631
)
10,993
32,949
35,894
Income before income taxes
2,858
48,021
156,287
119,850
Total adjustments related to income from operations
167,549
53,622
334,997
221,569
Loss on extinguishment and modification of debt
—
—
729
—
Adjusted income before income taxes
170,407
101,643
492,013
341,419
Non-GAAP tax provision on adjusted income before income taxes
37,490
22,361
108,243
75,112
Adjusted (non-GAAP) net income
$
132,917
$
79,282
$
383,770
$
266,307
Weighted average basic common shares outstanding
141,527
144,240
142,221
144,715
Weighted average dilutive potential common shares outstanding 1
145,470
146,487
145,248
145,964
Net Income per Common Share
GAAP diluted net income per potential common share
$
0.13
$
0.25
$
0.85
$
0.58
Adjusted (non-GAAP) diluted net income per potential common share
$
0.91
$
0.54
$
2.64
$
1.82
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) 3.9 million and 3.0 million for the fourth quarter and year ended fiscal 2025; and (ii) 2.2 million and 1.2 million for the fourth quarter and year ended fiscal 2024.
APPENDIX B - Calculation of EBITDA and Adjusted EBITDA
(in thousands) (unaudited)
Quarter Ended
Year Ended
November 1,
November 2,
November 1,
November 2,
2025
2024
2025
2024
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Net income (GAAP)
$
19,489
$
37,028
$
123,338
$
83,956
Add: Interest expense
21,982
24,990
89,403
97,028
Less: Interest and other income, net
14,349
13,801
48,888
50,261
Add: Loss on extinguishment and modification of debt
—
—
729
—
Add: Provision (benefit) for income taxes
(16,631
)
10,993
32,949
35,894
Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements
27,496
23,849
104,133
92,846
Add: Amortization of intangible assets
9,862
9,949
36,205
40,624
EBITDA
$
47,849
$
93,008
$
337,869
$
300,087
Add: Share-based compensation expense
48,886
41,068
184,729
156,353
Add: Significant asset impairments and restructuring costs
106,851
2,605
112,113
24,592
Add: Acquisition and integration costs
1,148
—
1,148
—
Add: Holdback arrangement
802
—
802
—
Adjusted EBITDA
$
205,536
$
136,681
$
636,661
$
481,032
* * *
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: