EARNINGS PER SHARE CALCULATION
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 (in thousands except per share amounts):
 Year Ended
 November 1, 2025November 2, 2024October 28, 2023
Net income$123,338 $83,956 $254,827 
Basic weighted average shares outstanding142,221 144,715 148,971 
Effect of dilutive potential common shares3,027 1,249 409 
Diluted weighted average shares outstanding145,248 145,964 149,380 
Basic EPS$0.87 $0.58 $1.71 
Diluted EPS$0.85 $0.58 $1.71 
Anti-dilutive stock unit awards excluded1,0041,0572,675

Historical Timeline

Fiscal YearFiled
2025Dec 12, 2025Showing above
2024Dec 20, 2024
2023Dec 15, 2023
2022Dec 16, 2022
2021Dec 17, 2021

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.