Cautionary Note Regarding Forward-Looking Statements This report contains statements that discuss future events or expectations, projections of results of operations or financial condition, changes in the markets for our products and services, trends in our business, operational matters including the expansion of manufacturing capacity and accumulation of inventory, business prospects and strategies and other “forward-looking” information. Forward-looking statements may appear throughout this report, including in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors.” In some cases, you can identify “forward-looking statements” by words like “may,” “will,” “would,” “can,” “should,” “could,” “expects,” “future,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “intends,” “potential,” “projects,” “targets,” “prepare,” or “continue” or the negative of those words and other comparable words. You should be aware that the forward-looking statements contained in this report are based on our current views and assumptions, and are subject to known and unknown risks, uncertainties, and other factors that may cause actual events or results to differ materially. For a discussion identifying some of the important factors that could cause actual results to vary materially from those anticipated in the forward-looking statements, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in this report. For a more complete understanding of the risks associated with an investment in our securities, you should review these factors and the rest of this report in combination with the more detailed description of our business and management’s discussion and analysis of financial condition and risk factors described in our Annual Report on Form 10-K for the fiscal year ended November 1, 2025, which we filed with the Securities and Exchange Commission (the “SEC”) on December 12, 2025 (our “2025 Annual Report”). However, we operate in a very competitive and dynamic environment and new risks and uncertainties emerge, are identified, or become apparent from time to time, and therefore may not be identified in this report. We cannot predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this report. You should be aware that the forward-looking statements contained in this report are based on our current views and assumptions. We undertake no obligation to revise or to update any forward-looking statements made in this report to reflect events or circumstances after the date hereof or to reflect new information or the occurrence of unanticipated events, except as required by law. The forward-looking statements in this report are intended to be subject to protection afforded by the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Unless the context requires otherwise, references in this report to “Ciena,” the “Company,” “we,” “us,” and “our” refer to Ciena Corporation and its consolidated subsidiaries. Overview We are a network technology company, providing hardware, software, and services to a wide range of network operators and enabling enhanced network capacity, service delivery, and automation. Our solutions support network traffic across a wide range of applications, including cloud, voice, video, data, and artificial intelligence (“AI”). Our network solutions are used globally by cloud providers, service providers, and other network operators across multiple industry verticals. The markets into which we sell are dynamic and characterized by a high rate of change. Networks continue to experience strong demand for increased bandwidth due to traffic growth, which is being driven by a diverse set of services, technologies, and customer needs. Business Momentum 26 Our industry has been experiencing unprecedented increases in demand, in particular due to capital expenditures related to AI and other cloud-based applications. As a result, we experienced strong momentum and growth in fiscal 2025 that continued in the first half of fiscal 2026. As our sales to cloud providers grow, we are seeing a small number of those customers become a larger portion of our business across multiple revenue segments. Our revenue increased by 40% to $1.6 billion in the second quarter of fiscal 2026 as compared to $1.1 billion in the second quarter of fiscal 2025, with orders for our products and services significantly exceeding our revenue. This dynamic, together with an industry-wide constrained supply environment, has resulted in historically high backlog. Gross Margin Dynamics Our gross margin increased to 44.0% in the second quarter of fiscal 2026, compared to 40.2% in the second quarter of fiscal 2025, primarily due to higher product gross margin associated with cost reduction, pricing optimization, and product mix. Operating Expense and Investment in Technology Innovation Our operating expense grew from $420 million in the second quarter of fiscal 2025 to $454 million in the second quarter of fiscal 2026. During the second quarter of fiscal 2026, we invested $238 million in research and development activities, an increase of 11% compared to the second quarter of fiscal 2025. We believe that our investment capacity and our efforts to push the pace of innovation are important competitive differentiators in our markets, which requires both investment capacity and expenditures. In particular, in an effort to capture certain market opportunities created by the impact of AI on networks, we continued to increase the performance of and enhance the capabilities for our leading WaveLogicTM coherent modem technology, through which we seek to extend our leadership in optical networking, and leverage it to expand our addressable market, including inside and around the data center. Capital Allocation Strategy Our capital allocation strategy is focused on maintaining our significant innovation investment, investing in select transactions, and returning value to stockholders, while preserving our strategic and operational flexibility. We continuously work to improve our cash cycle and evaluate alternatives to manage our capital structure in order to enhance our liquidity. We ended the first half of fiscal 2026 with $1.4 billion of cash, cash equivalents, and investments. As of the end of the first half of fiscal 2026, cash generated from operations increased to $487 million as compared to $261 million as of the end of the first half of fiscal 2025. Consistent with our capital allocation priorities, during the first half of fiscal 2026, we invested $115 million in capital purchases, primarily for supply chain equipment and research and development, and $344 million to repurchase shares through our share buyback program and for tax withholding purposes associated with employee stock awards. For additional information regarding our business, industry, market opportunity, competitive landscape, and strategy, see our 2025 Annual Report. Consolidated Results of Operations Operating Segments Our results of operations are presented based on our operating segments: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services. See Note 3 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report. Revenue As a result of the increased demand described above, our revenue increased by approximately 40%, or $444.9 million, in the second quarter of fiscal 2026 as compared to the second quarter of fiscal 2025, and approximately 36% or $799.6 million, in the six months ended May 2, 2026 as compared to the six months ended May 3, 2025. Operating Segment Revenue The table below sets forth the changes in our operating segment revenue for the periods indicated (in thousands, except percentage data): 27 Quarter Ended Six Months Ended May 2, 2026 May 3, 2025 %* May 2, 2026 May 3, 2025 %* Revenue: Networking Platforms Optical Networking $ 1,099,848 $ 773,592 42.2 % $ 2,123,010 $ 1,501,566 41.4 % %** 70.0 % 68.7 % 70.8 % 68.3 % Routing and Switching 174,230 92,723 87.9 % 300,236 185,892 61.5 % %** 11.1 % 8.2 % 10.0 % 8.5 % Total Networking Platforms 1,274,078 866,315 47.1 % 2,423,246 1,687,458 43.6 % %** 81.1 % 76.9 % 80.8 % 76.8 % Platform Software and Services 93,878 85,441 9.9 % 187,262 180,508 3.7 % %** 6.0 % 7.5 % 6.2 % 8.2 % Blue Planet Automation Software and Services 23,361 27,951 (16.4) % 43,781 53,982 (18.9) % %** 1.5 % 2.5 % 1.6 % 2.5 % Global Services Maintenance, Support, and Learning 89,286 79,442 12.4 % 176,837 154,014 14.8 % %** 5.7 % 7.1 % 5.9 % 7.0 % Implementation 79,702 58,174 37.0 % 147,650 105,857 39.5 % %** 5.1 % 5.2 % 4.9 % 4.8 % Advisory and Enablement 10,434 8,555 22.0 % 19,005 16,319 16.5 % %** 0.6 % 0.8 % 0.6 % 0.7 % Total Global Services 179,422 146,171 22.7 % 343,492 276,190 24.4 % %** 11.4 % 13.1 % 11.4 % 12.5 % Total revenue $ 1,570,739 $ 1,125,878 39.5 % $ 2,997,781 $ 2,198,138 36.4 % _____________________________ * Denotes % change from fiscal 2025 to fiscal 2026 ** Denotes % of total revenue Quarter ended May 2, 2026 as compared to the quarter ended May 3, 2025 •Networking Platforms segment revenue increased by $407.8 million. •Optical Networking products revenue increased by $326.3 million, primarily driven by increases in sales of our Waveserver® system and our 6500 Reconfigurable Line Systems (RLS). •Routing and Switching products revenue increased by $81.5 million, primarily driven by increases in sales of our 3000 and 5000 series of service delivery and aggregation platforms, and our 8100 Coherent IP networking platforms in our out-of-band data center management (DCOM) solution. •Platform Software and Services segment revenue increased by $8.4 million, primarily reflecting a sales increase in our Navigator Network Control Suite (NCS) software solution. •Blue Planet Automation Software and Services segment revenue decreased by $4.6 million, primarily reflecting a sales decrease in our unified assurance and analytics software. •Global Services segment revenue increased by $33.3 million, primarily reflecting sales increases in our implementation services and maintenance, support, and learning services. Six months ended May 2, 2026 as compared to the six months ended May 3, 2025 •Networking Platforms segment revenue increased by $735.7 million. 28 •Optical Networking revenue increased by $621.4 million, primarily driven by increases in sales of our Waveserver® system and our 6500 RLS. •Routing and Switching revenue increased by $114.3 million, primarily driven by increases in sales of our 3000 and 5000 series of service delivery and aggregation platforms, and our 8100 Coherent IP networking platforms in our DCOM solution. •Platform Software and Services segment revenue increased by $6.8 million, primarily reflecting a sales increase in our Navigator NCS software solution, partially offset by sales decreases of our software consulting services. •Blue Planet Automation Software and Services segment revenue decreased by $10.2 million, primarily reflecting a sales decrease in our unified assurance and analytics software. •Global Services segment revenue increased by $67.3 million, primarily reflecting sales increases in our implementation services and maintenance support and learning services. Revenue by Geographic Region Our operating segments engage in business and operations across three geographic regions: the United States, Canada, the Caribbean and Latin America (“Americas”); Europe, Middle East and Africa (“EMEA”); and Asia Pacific, Japan and India (“APAC”). The geographic distribution of our revenue can fluctuate significantly from period to period, and the timing of revenue recognition for large network projects, particularly outside of the United States, can result in variations in geographic revenue results in any particular period. The following table reflects our geographic distribution of revenue, principally based on the relevant location for our delivery of products and performance of services. The table sets forth the changes in geographic distribution of revenue for the periods indicated (in thousands, except percentage data): Quarter Ended Six Months Ended May 2, 2026 May 3, 2025 %* May 2, 2026 May 3, 2025 %* Americas $ 1,202,214 $ 833,822 44.2 % $ 2,320,437 $ 1,629,454 42.4 % %** 76.5 % 74.1 % 77.4 % 74.1 % EMEA 196,037 191,585 2.3 % 396,625 349,501 13.5 % %** 12.5 % 17.0 % 13.2 % 15.9 % APAC 172,488 100,471 71.7 % 280,719 219,183 28.1 % %** 11.0 % 8.9 % 9.4 % 10.0 % Total $ 1,570,739 $ 1,125,878 39.5 % $ 2,997,781 $ 2,198,138 36.4 % _____________________________________ * Denotes % change from fiscal 2025 to fiscal 2026 ** Denotes % of total revenue Quarter ended May 2, 2026 as compared to the quarter ended May 3, 2025 •Americas revenue increased by $368.4 million, primarily driven by increased sales to cloud provider customers as well as service provider customers in the United States. •EMEA revenue increased by $4.5 million, primarily driven by increased sales in France, partially offset by decreased sales to cloud provider customers in the Netherlands. •APAC revenue increased by $72.0 million, primarily driven by increased sales to service provider customers in India and enterprise customers in Australia. Six months ended May 2, 2026 as compared to the six months ended May 3, 2025 •Americas revenue increased by $691.0 million, primarily driven by increased sales to cloud provider customers and service provider customers in the United States. •EMEA revenue increased by $47.1 million, primarily driven by increased sales to cloud provider customers in the Netherlands and increased sales in France. 29 •APAC revenue increased by $61.5 million, primarily driven by increased sales to service provider customers in India, cloud provider customers in Singapore, and enterprise customers in Australia. Currency Fluctuations During both the second quarter and first six months of fiscal 2026, approximately 9% of our revenue was non-U.S. Dollar-denominated. During the second quarter and first six months of fiscal 2026 as compared to the second quarter and first six months of fiscal 2025, the U.S. Dollar generally weakened against other currencies with minimal impact. Gross Margin Gross margin is calculated as revenue less cost of goods sold, divided by revenue. •Product cost of goods sold consists primarily of amounts paid to third-party contract manufacturers, component costs, employee-related costs, shipping, logistics, and tariff costs associated with manufacturing-related operations, warranty and other contractual obligations, royalties, license fees, amortization of intangible assets, cost of excess and obsolete inventory and, any estimated losses on committed customer contracts. •Service cost of goods sold consists primarily of direct and third-party costs associated with our provision of services, including implementation, maintenance, support, learning, advisory and enablement activities, and any estimated losses on committed customer contracts. The majority of these costs relate to personnel, including employee and third-party contractor-related costs. Gross margin can fluctuate due to a number of factors, including technology-based price changes, product and service mix, the lifecycle stage of our products and cost reductions. The tables below set forth the changes in revenue and gross margin for the periods indicated (in thousands, except percentage data): Quarter Ended May 2, 2026 May 3, 2025 Revenue Gross Margin (%)** Revenue Gross Margin (%)** Revenue Change (%)* Gross Margin Change Total $ 1,570,739 44.0 % $ 1,125,878 40.2 % 39.5 % 3.8 % Products $ 1,311,488 43.9 % $ 898,581 38.8 % 46.0 % 5.1 % Services $ 259,251 44.8 % $ 227,297 45.9 % 14.1 % (1.1) % Six Months Ended May 2, 2026 May 3, 2025 Revenue Gross Margin (%)** Revenue Gross Margin (%)** Revenue Change (%)* Gross Margin Change Total $ 2,997,781 43.9 % $ 2,198,138 42.1 % 36.4 % 1.8 % Products $ 2,491,358 43.7 % $ 1,753,366 40.6 % 42.1 % 3.1 % Services $ 506,423 45.1 % $ 444,772 47.7 % 13.9 % (2.6) % _____________________________________ * Denotes % change from fiscal 2025 to fiscal 2026 ** Denotes % of total revenue Quarter ended May 2, 2026 as compared to the quarter ended May 3, 2025 •Gross margin increased by 380 basis points, primarily reflecting increased product margin offset by decreased services margin. •Product gross margin increased by 510 basis points, primarily due to cost reduction, pricing optimization, and product mix, partially offset by lower manufacturing efficiencies. •Services gross margin decreased by 110 basis points, primarily due to a less favorable services mix, partially offset by improved margins on implementation services. Six months ended May 2, 2026 as compared to the six months ended May 3, 2025 30 •Gross margin increased by 180 basis points, primarily reflecting increased product margin offset by decreased services margin. •Product gross margin increased by 310 basis points, primarily due to cost reduction, pricing optimization, and product mix, partially offset by lower manufacturing efficiencies. •Services gross margin decreased by 260 basis points, primarily due to a less favorable services mix, partially offset by improved margins on implementation services. Operating Expense The component elements that comprise each of our operating expense categories in the table below are set forth in the “Consolidated Results of Operations - Operating Expense” in Item 7 of Part II of our 2025 Annual Report. The table below sets forth the changes in operating expense for the periods indicated (in thousands, except percentage data): Quarter Ended Six Months Ended May 2, 2026 May 3, 2025 %* May 2, 2026 May 3, 2025 %* Research and development $ 237,905 $ 214,868 10.7 % $ 459,363 $ 407,531 12.7 % %** 15.1 % 19.1 % 15.3 % 18.5 % Selling and marketing 150,039 139,683 7.4 % 298,906 276,187 8.2 % %** 9.6 % 12.4 % 10.0 % 12.6 % General and administrative 61,221 56,952 7.5 % 120,464 110,854 8.7 % %** 3.9 % 5.1 % 4.0 % 5.0 % Significant asset impairments and restructuring costs 805 1,948 (58.7) % 2,303 3,492 (34.0) % %** 0.1 % 0.2 % 0.1 % 0.2 % Amortization of intangible assets 3,713 6,545 (43.3) % 8,449 13,090 (35.5) % %** 0.2 % 0.6 % 0.3 % 0.6 % Acquisition and integration costs — — — % 306 — 100.0 % %** — % — % — % — % Total operating expenses $ 453,683 $ 419,996 8.0 % $ 889,791 $ 811,154 9.7 % %** 28.9 % 37.3 % 29.7 % 36.9 % _____________________________________ * Denotes % change from fiscal 2025 to fiscal 2026 ** Denotes % of total revenue Quarter ended May 2, 2026 as compared to the quarter ended May 3, 2025 •Research and development expense increased by $23.0 million. Net of hedging, this primarily reflects higher employee headcount and related costs, including from our acquisition of Nubis Communications, technology related costs and engineering design and development costs. •Selling and marketing expense increased by $10.4 million, which primarily reflects increases in employee-related compensation costs. •General and administrative expense increased by $4.3 million, which primarily reflects increases in employee-related compensation costs. •Significant asset impairments and restructuring costs remained relatively unchanged. •Amortization of intangible assets decreased by $2.8 million, primarily reflecting certain intangible assets having reached the end of their economic lives. Six months ended May 2, 2026 as compared to the six months ended May 3, 2025 •Research and development expense increased by $51.8 million. Net of hedging, this primarily reflects higher employee headcount and related costs, including from our acquisition of Nubis Communications, technology related costs and engineering design and development costs. 31 •Selling and marketing expense increased by $22.7 million, which primarily reflects increases in employee-related compensation costs. •General and administrative expense increased by $9.6 million, which primarily reflects increases in employee-related compensation costs and professional services. •Significant asset impairments and restructuring costs remained relatively unchanged. •Amortization of intangible assets decreased by $4.6 million, primarily reflecting certain intangible assets having reached the end of their economic lives. •Acquisition and integration costs reflect financial, legal, and accounting advisory costs and certain employee-related costs related to our acquisition of Nubis Communications. Currency Fluctuations During both the second quarter and first six months of fiscal 2026, approximately 50% of our operating expense was non-U.S. Dollar-denominated. During the second quarter and first six months of fiscal 2026, as compared to the second quarter and first six months of fiscal 2025, the U.S. Dollar generally weakened against other currencies. These currency fluctuations, net of hedging, had minimal impact. Segment Profit (Loss) The table below sets forth the changes in our segment profit (loss) for the periods indicated (in thousands, except percentage data): Quarter Ended Six Months Ended May 2, 2026 May 3, 2025 %* May 2, 2026 May 3, 2025 %* Segment profit (loss): Networking Platforms $ 361,551 $ 151,422 138.8 % $ 678,182 $ 333,584 103.3 % Platform Software and Services $ 62,444 $ 52,995 17.8 % $ 124,162 $ 118,420 4.8 % Blue Planet Automation Software and Services $ (2,842) $ 6,477 (143.9) % $ (6,657) $ 12,976 (151.3) % Global Services $ 64,383 $ 52,342 23.0 % $ 123,137 $ 99,039 24.3 % _____________________________________ * Denotes % change from fiscal 2025 to fiscal 2026 Quarter ended May 2, 2026 as compared to the quarter ended May 3, 2025 •Networking Platforms segment profit increased by $210.1 million, primarily due to higher sales volume and improved gross margin as described above, partially offset by higher research and development costs. •Platform Software and Services segment profit increased by $9.4 million, primarily due to higher product sales volume, as described above, and improved gross margin. •Blue Planet Automation Software and Services segment primarily reflects lower software sales volume as described above, reduced gross margins and increased research and development costs. •Global Services segment profit increased by $12.0 million, primarily due to increased sales volume as described above. Six months ended May 2, 2026 as compared to the six months ended May 3, 2025 •Networking Platforms segment profit increased by $344.6 million, primarily due to higher sales volume and improved gross margin as described above, partially offset by higher research and development costs. •Platform Software and Services segment profit increased by $5.7 million, primarily due to higher product sales and slightly higher gross margin, partially offset by lower services sales volume and increased research and development costs. •Blue Planet Automation Software and Services segment primarily reflects lower software sales volume as described above, reduced gross margins and increased research and development costs. 32 •Global Services segment profit increased by $24.1 million, primarily due to increased sales volume as described above. Other Items The table below sets forth the changes in other items for the periods indicated (in thousands, except percentage data): Quarter Ended Six Months Ended May 2, 2026 May 3, 2025 %* May 2, 2026 May 3, 2025 %* Interest and other income, net $ 14,111 $ 7,871 79.3 % $ 27,068 $ 19,449 39.2 % %** 0.9 % 0.7 % 0.9 % 0.9 % Interest expense $ 20,922 $ 21,697 (3.6) % $ 42,176 $ 44,615 (5.5) % %** 1.3 % 1.9 % 1.4 % 2.0 % Loss on extinguishment and modification of debt $ — $ — — % $ — $ 729 (100.0) % %** — % — % — % — % Provision for income taxes $ 12,840 $ 10,047 27.8 % $ 43,672 $ 34,069 28.2 % %** 0.8 % 0.9 % 1.5 % 1.5 % _____________________________________ * Denotes % change from fiscal 2025 to fiscal 2026 ** Denotes % of total revenue Quarter ended May 2, 2026 as compared to the quarter ended May 3, 2025 •Interest and other income, net increased by $6.2 million, primarily reflecting the impact of foreign exchange rates on assets and liabilities denominated in a currency other than the relevant functional currency, net of hedging activity. •Interest expense remained relatively unchanged. •Provision for income taxes increased by $2.8 million, primarily due to the increase in pre-tax book income. Six months ended May 2, 2026 as compared to the six months ended May 3, 2025 •Interest and other income, net increased by $7.6 million, primarily reflecting the impact of foreign exchange rates on assets and liabilities denominated in a currency other than the relevant functional currency, net of hedging activity. •Interest expense decreased by $2.4 million, primarily due to lower interest rates on our floating rate debt, net of hedging activity. •Loss on extinguishment and modification of debt reflects the refinancing of our 2030 Term Loan in the first quarter of fiscal 2025. •Provision for income taxes increased by $9.6 million, primarily due to the increase in pre-tax book income. Liquidity and Capital Resources We regularly evaluate our capital structure, liquidity position, debt obligations, and anticipated cash needs to fund our operating or investment plans, and we will continue to consider capital raising and other market opportunities that may be available to us. Principal Sources of Liquidity. Our principal sources of liquidity on hand include our cash, cash equivalents, and investments, which, as of May 2, 2026, totaled $1.4 billion, as well as our credit facility (the “Revolving Credit Facility”), to which we and certain of our subsidiaries are parties. The Revolving Credit Facility provides for a total commitment of $300.0 million with a maturity date of October 24, 2028. We principally use the Revolving Credit Facility to support the issuance of letters of credit that arise in the ordinary course of our business and for general corporate purposes. As of May 2, 2026, letters of credit totaling $39.9 million were issued under the Revolving Credit Facility. There were no borrowings outstanding under the Revolving Credit Facility as of May 2, 2026. 33 Foreign Liquidity. The amount of cash, cash equivalents and short-term investments held by our foreign subsidiaries was $379.7 million as of May 2, 2026. Approximately $92.3 million of undistributed earnings from these foreign subsidiaries is expected to be repatriated, with any remaining amount continuing to be indefinitely reinvested. A deferred tax liability has been accrued to account for the anticipated repatriation amount. There are no other significant temporary differences related to our investment in the foreign subsidiaries for which a deferred tax liability has not been recognized. Stock Repurchases. On October 2, 2024, we announced that our Board of Directors authorized a program to repurchase up to $1.0 billion of our common stock, which replaced in its entirety the previous stock repurchase program authorized in fiscal 2022. During the first six months of fiscal 2026, we repurchased $163.7 million of our common stock under the stock repurchase program, and $506.7 million remained under the current repurchase authorization as of May 2, 2026. The amount and timing of any further repurchases under our stock repurchase program are subject to a variety of factors including liquidity, cash flow, stock price, and general business and market conditions. The program may be modified, suspended, or discontinued at any time. During the the first six months of fiscal 2026, we also repurchased $179.4 million of our common stock in settlement of employee tax withholding obligations due upon the vesting of stock unit awards. See Note 15 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report as well as “Issuer Purchases of Equity Securities” in Item 2 of Part II of this report. Cash Flows The following table sets forth changes in our cash, cash equivalents, and investments in marketable debt securities for the periods indicated (in thousands): May 2, 2026 November 1, 2025 Increase (Decrease) Cash and cash equivalents $ 1,045,126 $ 1,091,952 $ (46,826) Short-term investments in marketable debt securities 157,708 216,148 (58,440) Long-term investments in marketable debt securities 200,106 57,142 142,964 Total cash, cash equivalents, and investments in marketable debt securities $ 1,402,940 $ 1,365,242 $ 37,698 Cash, cash equivalents and investments increased by $37.7 million during the first six months of fiscal 2026. Cash from operating activities generated $487.3 million, which was partially offset by the following: (i) stock repurchases on vesting of our stock unit awards to employees relating to tax withholding of $179.4 million; (ii) cash used for stock repurchases under our stock repurchase program of $164.9 million; (iii) cash used to fund our investing activities for capital expenditures totaling $114.9 million; and (iv) cash used for payments on our term loan due October 28, 2030 of $5.8 million. In addition to cash provided by operating activities, proceeds from the issuance of equity under our employee stock purchase plan provided $17.2 million in cash during the six months ended May 2, 2026. Cash Provided By Operating Activities The following sections set forth the components of our $487.3 million of cash provided by operating activities during the first six months of fiscal 2026. Net income (adjusted for non-cash charges) provided cash of $612.0 million, offset by cash used in operating assets and liabilities of $124.7 million. Net income (adjusted for non-cash charges) The following table sets forth our net income (adjusted for non-cash charges) during the period (in thousands): 34 Six Months Ended May 2, 2026 Net income $ 368,503 Adjustments for non-cash charges: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements 67,021 Share-based compensation expense 105,300 Amortization of intangible assets 22,020 Deferred taxes (10,563) Provision for inventory excess and obsolescence 42,481 Provision for warranty 16,685 Other 603 Net income (adjusted for non-cash charges) $ 612,050 Operating Assets and Liabilities Operating asset and liability requirements increased by $124.7 million during the period. The following table sets forth the major components of the cash changes in operating assets and liabilities (in thousands): Six Months Ended May 2, 2026 Accounts receivable $ (71,555) Inventories (24,690) Prepaid expenses and other (34,047) Accounts payable, accruals, and other obligations (27,945) Deferred revenue 35,442 Operating lease assets and liabilities, net (1,908) Total cash consumed by operating assets and liabilities $ (124,703) As compared to the end of fiscal 2025, for the first six months of fiscal 2026: •The change in accounts receivable primarily reflects increased sales volume, partially offset by improved cash collections; •The change in inventories primarily reflects increased finished good inventory to mitigate supply chain volatility, partially offset by reduction in raw materials; •The change in prepaid expenses and other primarily reflects higher refundable cash advances to a third-party contract manufacturer and higher prepaid value-added tax (VAT); •The change in accounts payable, accruals, and other obligations primarily reflects the timing of payments associated with our annual incentive compensation plan, partially offset by the timing of payments to suppliers; •The change in deferred revenue primarily represents an increase in advanced payments received on multi-year maintenance contracts from customers prior to revenue recognition; and •The change in operating lease assets and liabilities, net, represents cash paid for operating lease payments in excess of operating lease costs. Cash Paid for Interest, Net The following table sets forth the cash paid for interest, net, during the period (in thousands): 35 Six Months Ended May 2, 2026 Refinanced 2030 Term Loan due October 28, 2030(1) $ 32,115 2030 Senior Notes due January 31, 2030(2) 8,000 Interest rate swaps(3) (1,470) Revolving Credit Facility(4) 758 Finance leases 1,576 Cash paid during period $ 40,979 (1) Interest on the Refinanced 2030 Term Loan is payable periodically based on the interest period selected for borrowing. The Refinanced 2030 Term Loan bears interest at SOFR for the chosen borrowing period plus a spread of 1.75% subject to a minimum SOFR rate of 0.00%. At the end of the second quarter of fiscal 2026, the interest rate on the Refinanced 2030 Term Loan was 5.41%. (2) The 2030 Notes bear interest at a rate of 4.00% per annum. Interest is payable on the 2030 Notes in arrears on January 31 and July 31 of each year. (3) Our interest rate swaps fix the SOFR rate for $350.0 million of our Refinanced 2030 Term Loan at 3.47% through January 2028 and another $350.0 million of our Refinanced 2030 Term Loan at 3.287% through December 2028. (4) During the first six months of fiscal 2026, we utilized the Revolving Credit Facility to issue certain standby letters of credit and paid nominal commitment fees, interest expense and other administrative charges primarily relating to the Revolving Credit Facility. For additional information about our debt and interest rate swaps, see Notes 11 and 12 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report. Contractual Obligations Our contractual obligations have not changed materially since November 1, 2025, except for the item listed below. For a summary of our contractual obligations, see “Liquidity and Capital Resources – Contractual Obligations” in Item 7 of Part II of our 2025 Annual Report. Purchase Order Obligations. As of May 2, 2026, we had $2.8 billion in outstanding purchase order commitments to our contract manufacturers and component suppliers for inventory. In certain instances, we are permitted to cancel, reschedule or adjust these orders. Consequently, only a portion of this amount relates to firm, non-cancelable and unconditional obligations. Critical Accounting Policies and Estimates Our critical accounting policies and estimates have not changed materially since November 1, 2025. For a discussion of our critical accounting policies and estimates, see “Critical Accounting Policies and Estimates” in Item 7 of Part II of our 2025 Annual Report. Effects of Recent Accounting Pronouncements See Note 2 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report for information relating to our discussion of the effects of recent accounting pronouncements.