Basic net income per common share (“Basic EPS”) is computed using the weighted average number of common shares outstanding. Diluted net income per potential common share (“Diluted EPS”) is computed using the weighted average number of the following unless the impact of the item is anti-dilutive: (i) common shares outstanding, (ii) shares issuable upon vesting of stock unit awards; and (iii) shares issuable under Ciena’s employee stock purchase plan and upon exercise of outstanding stock options, using the treasury stock method.

The following table presents the calculation of Basic and Diluted EPS for the periods indicated (in thousands, except per share amounts):


	Quarter Ended				Nine Months Ended
	August 1,		August 2,		August 1,		August 2,
	2026		2025		2026		2025
Net income	$	266,418	$	50,308	$	634,921	$	103,849
Basic weighted average shares outstanding	142,061		141,846		142,229		142,437
Effect of dilutive potential common shares	3,906		2,653		3,998		2,721
Diluted weighted average shares outstanding	145,967		144,499		146,227		145,158
Basic EPS	$	1.88	$	0.35	$	4.46	$	0.73
Diluted EPS	$	1.83	$	0.35	$	4.34	$	0.72
Anti-dilutive stock unit awards, excluded	2		1,371		9		1,330

Diluted EPS only includes the potential impact of the 2031 Notes and the 2031 Warrant Transactions when dilutive. The 2031 Notes are repayable in cash up to par value, and in cash or shares of common stock for the excess over par value. When the stock price is lower than the strike price, there is no dilutive or anti-dilutive impact. There is a dilutive impact only to the extent the average market price of Ciena’s common stock exceeds the conversion price. The 2031 Warrant Transactions

increase the weighted-average number of common shares outstanding when the average market price of our common stock exceeds the $1,000 exercise price under the treasury stock method. See Note 13 above.