Ciena Reports Fiscal Fourth Quarter 2025 and Year-End Financial Results
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 reinforce...
Summary
- Fiscal fourth quarter 2025 revenue was $1.35 billion, up 20% year-over-year
- Fiscal year 2025 revenue was $4.77 billion, up 19% year-over-year
- Providing guidance for revenue in the range of $1.35 billion to $1.43 billion for the first fiscal quarter of 2026 and $5.7 billion to $6.1 billion for fiscal year 2026
HANOVER, Md.: 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:
- $1.35 billion in the fiscal fourth quarter 2025, compared to $1.12 billion in the fiscal fourth quarter 2024
- $4.77 billion in fiscal year 2025, compared to $4.01 billion in the fiscal year 2024
Net Income per diluted share:
- $0.13 GAAP and $0.91 adjusted (non-GAAP) for the fiscal fourth quarter 2025, compared to $0.25 and $0.54 for fiscal fourth quarter 2024, respectively
- $0.85 GAAP and $2.64 adjusted (non-GAAP) for fiscal year 2025, compared to $0.58 and $1.82 for fiscal year 2024, respectively
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:
- Revenue in the range of $5.7 billion to $6.1 billion
- Adjusted (non-GAAP) gross margin of 43% plus or minus 1%
- Adjusted (non-GAAP) operating expense of approximately $1.52 billion
- Adjusted (non-GAAP) operating margin of 17% plus or minus 1%
Ciena expects fiscal first quarter 2026 to include:
- Revenue in the range of $1.35 billion to $1.43 billion
- Adjusted (non-GAAP) gross margin between 43% to 44%
- Adjusted (non-GAAP) operating expense of approximately $380 million
- Adjusted (non-GAAP) operating margin between 15.5% and 16.5%
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
- Three customers represented 10%-plus of revenue for a total of 43.6% of revenue for the fiscal fourth quarter 2025.
- Two customers represented 10%-plus of revenue for a total of 28.4% of revenue for the fiscal year 2025.
- Average days' sales outstanding (DSOs) were 77 and 88 for the fiscal fourth quarter and the fiscal year 2025, respectively.
- Product inventory turns were 3.1 and 2.7 for the fiscal fourth quarter and the fiscal year 2025, respectively.
- Repurchased approximately 0.7 million and 4.0 million shares of common stock for an aggregate price of $84.5 million and $329.7 million during fiscal fourth quarter and fiscal year 2025, respectively.
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 | ||||||
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