VIAVI Announces Third Quarter Fiscal 2026 Results

Rhea-AI Summary

VIAVI (NASDAQ: VIAV) reported fiscal Q3 results for the quarter ended March 28, 2026: net revenue $406.8M (+42.8% YoY), GAAP operating margin 6.1% (+310 bps YoY), non-GAAP operating margin 21.0% (+430 bps YoY). GAAP net income was $6.4M, non-GAAP net income was $67.6M. Cash and short-term investments totaled $508.0M. Segment revenue: Network and Service Enablement $321.5M (+54.4% YoY); Optical Security and Performance Products $85.3M (+11.4% YoY). Q4 guidance: net revenue $427M–$437M, non-GAAP EPS $0.29–$0.31.

AI-generated analysis. Not financial advice.

Positive

• Net revenue +42.8% YoY to $406.8M
• Network and Service Enablement revenue +54.4% YoY to $321.5M
• Non-GAAP operating margin improved to 21.0% (+430 bps YoY)
• Non-GAAP net income +99.4% YoY to $67.6M
• Company holds $508.0M in cash and short-term investments

Negative

• GAAP net income down 67.2% YoY to $6.4M
• GAAP diluted EPS declined to $0.03 (down $0.06)
• Total net carrying value of debt and loans $1,080.8M

News Market Reaction – VIAV

+15.09%

67 alerts

+15.09% News Effect

+35.2% Peak in 23 hr 26 min

+$1.39B Valuation Impact

$10.62B Market Cap

0.4x Rel. Volume

On the day this news was published, VIAV gained 15.09%, reflecting a significant positive market reaction. Argus tracked a peak move of +35.2% during that session. Our momentum scanner triggered 67 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $1.39B to the company's valuation, bringing the market cap to $10.62B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net revenue: $406.8M GAAP operating margin: 6.1% Non-GAAP operating margin: 21.0% +5 more

8 metrics

Net revenue $406.8M Fiscal Q3 2026, up 42.8% year-over-year

GAAP operating margin 6.1% Fiscal Q3 2026, up 310 bps year-over-year

Non-GAAP operating margin 21.0% Fiscal Q3 2026, up 430 bps year-over-year

GAAP EPS $0.03 Fiscal Q3 2026, down 66.7% year-over-year

Non-GAAP EPS $0.27 Fiscal Q3 2026, up 80.0% year-over-year

Non-GAAP net income $67.6M Fiscal Q3 2026, up 99.4% year-over-year

Cash & equivalents $508.0M As of March 28, 2026

Total debt carrying value $1,080.8M Senior Convertible Notes, Senior Notes and Term Loan B

Market Reality Check

Price: $49.51 Vol: Volume 5,759,439 is in li...

normal vol

$49.51 Last Close

Volume Volume 5,759,439 is in line with 20-day average of 5,761,996, suggesting typical trading activity ahead of this release. normal

Technical Price 43.17 is trading above the 200-day moving average at 20.31, indicating a pre-existing longer-term uptrend into earnings.

Peers on Argus

Momentum data flags VIAV’s move as stock-specific: the scanner shows VIAV’s targ...

1 Up 1 Down

Momentum data flags VIAV’s move as stock-specific: the scanner shows VIAV’s target direction as up, while peers are mixed, with AAOI down -1.49% and VSAT up 2.90%. Broader peer list (EXTR, ONDS, COMM, BDC) also shows mostly negative moves, reinforcing a company-specific reaction.

Common Catalyst Same-day peer headlines include earnings for EXTR and a ViaSat-3 launch update for VSAT, but these are unrelated to VIAV’s quarterly results.

Historical Context

5 past events · Latest: Apr 27 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Apr 27	PCIe 7.0 platform	Positive	-5.9%	Announced new Xgig PCIe 7.0 protocol analysis testing platform investment.
Apr 16	Software update release	Positive	+4.8%	Released PCMasterPro 1.16, boosting 3D terrain and surface modeling performance.
Apr 15	Earnings date set	Neutral	+4.8%	Announced date and details for fiscal Q3 2026 financial results release and call.
Apr 14	Optical link milestone	Positive	-1.7%	Partner X-lumin hit 400 Gbps full‑duplex wireless optical link using VIAVI tools.
Apr 14	Certification recognition	Positive	-1.7%	TTworkbench and M1 Appliance recognized as Avnu Certification Test Tool for TSN.

Pattern Detected

Recent product and technology announcements often saw mixed to negative price reactions, while scheduling/communication items and some software updates saw more positive alignment.

Recent Company History

Over the last few weeks, VIAVI has issued several technology and product updates, including a PCIe 7.0 test platform on Apr 27 and the PCMasterPro 1.16 software release on Apr 16. An earnings date announcement on Apr 15 and TSN test tool recognition on Apr 14 rounded out a busy period. Price reactions alternated between gains around +4.84% and pullbacks of around -5.93% and -1.69%, indicating investors have responded inconsistently to otherwise constructive news.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-08-11

An effective automatic shelf registration filed on 2025-08-11 (Form S-3ASR) allows Viavi to offer various securities, including common and preferred stock and debt, over time for general corporate purposes. The filing authorizes up to 1,001,000,000 shares across common and preferred, giving management broad flexibility for future capital-raising without further stockholder approval.

Market Pulse Summary

The stock surged +15.1% in the session following this news. A strong positive reaction aligns with t...

Analysis

The stock surged +15.1% in the session following this news. A strong positive reaction aligns with the robust fundamentals in this report: net revenue reached $406.8M with non-GAAP operating margin at 21.0% and non-GAAP EPS of $0.27. Historically, VIAVI’s news flow has produced mixed follow-through, so investors might watch whether enthusiasm persists as they digest the company’s $1,080.8M total debt load and existing S-3ASR shelf that allows flexible future capital raises.

Key Terms

gaap, non-gaap, diluted earnings per share, senior convertible notes, +3 more

7 terms

gaap financial

"GAAP operating margin of 6.1%, up 310 bps year-over-year"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

non-gaap financial

"Non-GAAP operating margin of 21.0%, up 430 bps year-over-year"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

diluted earnings per share financial

"GAAP diluted earnings per share (EPS) of $0.03, down $0.06 or 66.7% year-over-year"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

senior convertible notes financial

"the Company had $250.0 million aggregate principal amount of 0.625% Senior Convertible Notes"

A senior convertible note is a loan a company issues that ranks near the top of payment priority and can be exchanged for the company’s stock under preset terms. Think of it as an IOU that promises interest payments and first dibs on repayments if assets are liquidated, but also gives the lender the option to become an owner later; investors watch these for repayment safety, interest income, and potential stock dilution.

senior notes financial

"and $400 million aggregate principal amount of 3.75% Senior Notes"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

term loan b financial

"and $450.0 million aggregate principal amount of Term Loan B with a total net carrying value"

A Term Loan B (TLB) is a large, syndicated loan made to a company that is typically sold to institutional investors rather than held by banks; think of it as a long-term mortgage from a group of investors with higher interest and smaller early payments. It matters to investors because it changes a company’s debt cost, repayment schedule and credit risk—factors that affect profit, cash flow and the market value of both the company’s equity and its traded debt.

form 8-k regulatory

"This press release is being furnished as a Current Report on Form 8-K with the Securities"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

AI-generated analysis. Not financial advice.

CHANDLER, Ariz., April 29, 2026 /PRNewswire/ -- VIAVI (NASDAQ: VIAV) today reported results for its fiscal third quarter ended March 28, 2026 with the following highlights.

Third Quarter

• Net revenue of $406.8 million, up $122.0 million or 42.8% year-over-year
• GAAP operating margin of 6.1%, up 310 bps year-over-year
• Non-GAAP operating margin of 21.0%, up 430 bps year-over-year
• GAAP net income of $6.4 million, down $13.1 million or 67.2% year-over-year
• Non-GAAP net income of $67.6 million, up $33.7 million or 99.4% year-over-year
• GAAP diluted earnings per share (EPS) of $0.03, down $0.06 or 66.7% year-over-year
• Non-GAAP diluted EPS of $0.27, up $0.12 or 80.0% year-over-year

"VIAVI's financial performance for the third quarter has exceeded our expectations, driven by strong growth in the data center and aerospace and defense end markets. We expect these end markets to continue to be strong drivers for the foreseeable future," said Oleg Khaykin, VIAVI's President and Chief Executive Officer.

Financial Overview:

The tables below (in millions, except percentage and per share data) provide comparisons of quarterly results to prior periods, including sequential quarterly and year-over-year changes. A full reconciliation between the GAAP and non-GAAP measures included in the tables is contained in this release under the section titled "Use of Non-GAAP (Adjusted) Financial Measures."

Fiscal Third Quarter Ended March 28, 2026

	GAAP Results
	Q3		Q2		Q3		Change
	FY 2026		FY 2026		FY 2025		Q/Q		Y/Y
Net revenue	$      406.8		$      369.3		$      284.8		10.2 %		42.8 %
Gross margin	57.5 %		57.0 %		56.4 %		50 bps		110 bps
Operating margin	6.1 %		3.1 %		3.0 %		300 bps		310 bps
Income from operations	$       24.8		$       11.4		$         8.5		117.5 %		191.8 %
Net income (loss) per share	0.03		(0.21)		0.09		114.3 %		(66.7) %
	Non-GAAP Results
	Q3		Q2		Q3		Change
	FY 2026		FY 2026		FY 2025		Q/Q		Y/Y
Gross margin	62.2 %		61.8 %		60.0 %		40 bps		220 bps
Operating margin	21.0 %		19.3 %		16.7 %		170 bps		430 bps
Income from operations	$       85.5		$       71.4		$       47.7		19.7 %		79.2 %
Earnings per share	0.27		0.22		0.15		22.7 %		80.0 %
	Net Revenue by Segment
	Q3		Q2		Q3		Change
	FY 2026		FY 2026		FY 2025		Q/Q		Y/Y
Network and Service Enablement	$        321.5		$        291.5		$        208.2		10.3 %		54.4 %
Optical Security and Performance Products	85.3		77.8		76.6		9.6 %		11.4 %
Total	$        406.8		$        369.3		$        284.8		10.2 %		42.8 %

 

• Americas, Asia-Pacific and EMEA customers represented 44.9%, 31.5% and 23.6%, respectively, of total net revenue for the quarter ended March 28, 2026.
• As of March 28, 2026, the Company held $508.0 million in total cash, short-term investments and short-term restricted cash.
• As of March 28, 2026, the Company had $250.0 million aggregate principal amount of 0.625% Senior Convertible Notes, $400 million aggregate principal amount of 3.75% Senior Notes and $450.0 million aggregate principal amount of Term Loan B with a total net carrying value of $1,080.8 million.
• During the fiscal quarter ended March 28, 2026, the Company used $26.3 million of cash in operating activities. This is primarily due to a portion of the contingent consideration payment classified as an operating outflow.

Business Outlook for the Fourth Quarter of Fiscal 2026

For the fourth quarter of fiscal 2026 ending June 27, 2026, the Company expects net revenue to be between $427 million to $437 million and non-GAAP EPS to be between $0.29 to $0.31.

With respect to our expectations above, the Company has not reconciled GAAP net income (loss) per share to non-GAAP EPS in this press release because it is unable to provide a meaningful or accurate estimate of certain reconciling items described in the "Use of Non-GAAP (Adjusted) Financial Measures" section below and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of certain items, including certain charges related to restructuring, acquisition, integration and related charges. In addition, the Company believes such reconciliations would imply a degree of precision that may be confusing or misleading to investors.

Conference Call

The Company will discuss these results and other related matters at 1:30 p.m. Pacific Time on April 29, 2026 in a live webcast, which will also be archived for replay on the Company's website at https://investor.viavisolutions.com. The Company will post supplementary slides outlining the Company's latest financial results on https://investor.viavisolutions.com under the "Quarterly Results" section concurrently with this earnings press release. This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at www.sec.gov.

About VIAVI Solutions

VIAVI (NASDAQ: VIAVI) is a global leader in test and measurement and optical technologies. Our test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications. In addition, we develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.

Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include any expectation, anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, profitability targets, cash flow and other financial metrics, as well as the impact and duration of certain trends and market position and conditions, including market stabilization and recovery. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, the Company's ability to predict future financial performance continues to be difficult due to, among other things: (a) continuing general limited visibility across many of our product lines; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) consolidations in our industry and customer base; (d) competitive pressures; (e) unforeseen changes or deceleration in the demand for current and new products, technologies, services, delays or unforeseen events in the roll-out of new industry platforms or evolving technology such as 3D sensing and customer purchasing delays due to macroeconomic conditions, tightening of expenditures or as they assess or transition to such new technologies and/or architectures, all of which limit near-term demand visibility, and could negatively impact potential revenue; (f) continued decline of average selling prices across our businesses; (g) notable seasonality and a significant level of in-quarter book-and-ship business; (h) various product and manufacturing transfers, site consolidations, product discontinuances and restructuring and workforce reduction plans, including the number of employees impacted by a restructuring plan, the estimated expenses the Company will recognize, the timing of these payments and expenses, and anticipated cost savings associated with such plans; (i) challenges in execution of business strategy; (j) financial projections and expectations, including profitability of certain business units, synergies, benefits and other matters related to the acquisition of the high-speed ethernet, network security and channel emulation testing business of Spirent Communications plc; (k) challenges integrating the businesses the Company has acquired and realizing all of the expected benefits and savings; (l) supply chain and materials constraints and the ability of our suppliers and contract manufacturers to meet production and delivery requirements to our forecasted demand; (m) potential disruptions or delays to our manufacturing and operations due to climate conditions and natural disasters in the regions where we operate, such as wildfires, drought conditions and related water shortages in Arizona, as well as wildfires in Northern California and related blackouts and power outages in that region; (n) the uncertain and ongoing impact to our supply chain of geopolitical tensions, such as the ongoing conflict between Russia and Ukraine and the instability in the Middle East, evolving global trade and tariff negotiations and the uncertain tariff landscape, sanctions and other trade measures imposed by domestic and foreign governments, adverse actions and escalating tensions with foreign governments, including China, and the possibility of escalation of "trade wars," cyber-attacks, and retaliatory measures; (o) the impact of infectious disease outbreaks, epidemics, and pandemics on our financial results, revenues, customer demand, business operations and manufacturing and on the business operations of our customers, contract manufacturers and suppliers; and (p) inherent uncertainty related to global markets, including inflationary pressures, recessions, tightening monetary policy and liquidity, and the effect of such markets on demand for our products. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For more information on the risks and uncertainties associated with the Company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements contained in this press release are made as of the date thereof and the Company assumes no obligation to update such statements. We have not filed our Form 10-Q for the quarter ended March 28, 2026. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file the Form 10-Q.

Contact Information

Investors:
Vibhuti Nayar
408-404-6305
vibhuti.nayar@viavisolutions.com

Press:
Amit Malhotra
202-341-8624
amit.malhotra@viavisolutions.com

The following financial tables are presented in accordance with GAAP, unless otherwise specified.

-SELECTED PRELIMINARY FINANCIAL DATA -

 

VIAVI SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
PRELIMINARY
	Three Months Ended				Nine Months Ended
	March 28, 2026		March 29, 2025		March 28, 2026		March 29, 2025
Net revenue	$          406.8		$          284.8		$        1,075.2		$          793.8
Cost of revenues	159.7		118.0		429.1		323.5
Amortization of acquired technologies	13.0		6.1		32.4		12.7
Gross profit	234.1		160.7		613.7		457.6
Operating expenses:
Research and development	71.0		50.0		192.9		151.5
Selling, general and administrative	113.6		101.3		344.9		259.7
Amortization of other intangibles	7.4		1.2		15.2		3.3
Restructuring and related charges (benefits)	17.3		(0.3)		16.9		0.9
Total operating expenses	209.3		152.2		569.9		415.4
Income from operations	24.8		8.5		43.8		42.2
Interest and other income (expense), net	3.3		2.2		(34.0)		9.3
Interest expense	(14.3)		(7.5)		(37.0)		(22.5)
Income (loss) before income taxes and equity investment earnings	13.8		3.2		(27.2)		29.0
Provision for (benefit from) income taxes	7.4		(16.3)		36.1		2.2
Equity investment earnings	—		—		0.2		—
Net income (loss)	$             6.4		$            19.5		$          (63.1)		$            26.8
Net income (loss) per share:
Basic	$            0.03		$            0.09		$          (0.28)		$            0.12
Diluted	$            0.03		$            0.09		$          (0.28)		$            0.12
Shares used in per share calculations:
Basic	232.0		222.6		226.2		222.2
Diluted	249.5		226.9		226.2		225.2

The preliminary financial statements are estimated based on our current information.

 

VIAVI SOLUTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)
PRELIMINARY
	March 28, 2026		June 28, 2025
ASSETS
Current assets:
Cash and cash equivalents	$                499.0		$                423.6
Short-term investments	1.8		1.7
Restricted cash	7.2		3.7
Accounts receivable, net	320.3		261.0
Inventories, net	147.9		117.9
Prepayments and other current assets	77.5		77.3
Total current assets	1,053.7		885.2
Property, plant and equipment, net	222.5		231.9
Goodwill, net	701.8		595.7
Intangibles, net	398.0		131.6
Deferred income taxes	79.7		87.2
Other non-current assets	72.1		62.2
Total assets	$              2,527.8		$              1,993.8
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$                 81.7		$                 68.8
Accrued payroll and related expenses	72.8		63.6
Deferred revenue	85.2		74.1
Accrued expenses	27.8		28.7
Short-term debt	244.5		246.2
Other current liabilities	140.5		108.3
Total current liabilities	652.5		589.7
Long-term debt	836.3		396.3
Other non-current liabilities	192.5		227.6
Total liabilities	1,681.3		1,213.6
Total stockholders' equity	846.5		780.2
Total liabilities and stockholders' equity	$              2,527.8		$              1,993.8

The preliminary financial statements are estimated based on our current information.

 

VIAVI SOLUTIONS INC.
REPORTABLE SEGMENT INFORMATION
(in millions, unaudited)
PRELIMINARY
	Three Months Ended March 28, 2026
	Network and Service Enablement		Optical Security and Performance Products		Other Items (1)		Consolidated GAAP Measures
Net revenue	$      321.5		$       85.3		$            —		$      406.8
Gross profit	$      210.0		$       42.9		$        (18.8)		$      234.1
Gross margin	65.3 %		50.3 %				57.5 %
Operating income	$       55.4		$       30.1		$        (60.7)		$       24.8
Operating margin	17.2 %		35.3 %				6.1 %
	Three Months Ended March 29, 2025
	Network and Service Enablement		Optical Security and Performance Products		Other Items (1)		Consolidated GAAP Measures
Net revenue	$      208.2		$       76.6		$            —		$      284.8
Gross profit	$      131.3		$       39.5		$        (10.1)		$      160.7
Gross margin	63.1 %		51.6 %				56.4 %
Operating income	$       21.7		$       26.0		$        (39.2)		$         8.5
Operating margin	10.4 %		33.9 %				3.0 %
	Nine Months Ended March 28, 2026
	Network and Service Enablement		Optical Security and Performance Products		Other Items (1)		Consolidated GAAP Measures
Net revenue	$     829.0		$     246.2		$           —		$   1,075.2
Gross profit	$     534.7		$     125.9		$        (46.9)		$     613.7
Gross margin	64.5 %		51.1 %				57.1 %
Operating income	$     117.1		$       86.9		$       (160.2)		$       43.8
Operating margin	14.1 %		35.3 %				4.1 %
	Nine Months Ended March 29, 2025
	Network and Service Enablement		Optical Security and Performance Products		Other Items (1)		Consolidated GAAP Measures
Net revenue	$     567.5		$     226.3		$           —		$     793.8
Gross profit	$     357.9		$     119.0		$        (19.3)		$     457.6
Gross margin	63.1 %		52.6 %				57.6 %
Operating income	$       31.8		$       80.2		$        (69.8)		$       42.2
Operating margin	5.6 %		35.4 %				5.3 %

(1) See Reconciliation of GAAP Measures from Continuing Operations to Non-GAAP Measures below for details of Other Items.

The preliminary financial schedules are estimated based on our current information.

Use of Non-GAAP (Adjusted) Financial Measures

The Company provides non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP EPS financial measures as supplemental information regarding the Company's operational performance and believes providing this additional information allows investors to see Company results through the eyes of management, to evaluate more clearly and consistently the Company's core operational performance and expenses and evaluate the efficacy of the methodology used by management to measure such performance. The Company uses the measures disclosed in this release to evaluate the Company's historical and prospective financial performance, as well as its performance relative to its competitors. Specifically, management uses these items to further its own understanding of the Company's core operating performance, which the Company believes represents its performance in the ordinary, ongoing and customary course of its operations. Accordingly, management excludes from core operating performance items such as those relating to certain purchase price accounting adjustments, amortization of acquisition related intangibles, amortization expense related to acquisition related inventory step-up, stock-based compensation, legal settlements, restructuring, changes in fair value of contingent consideration liabilities, certain investing and acquisition related expenses and other activities and income tax expenses or benefits that management believes are not reflective of such ordinary, ongoing and core operating activities. The non-GAAP adjustments are outlined below. 

Cost of revenues, costs of research and development and costs of selling, general and administrative: The Company's GAAP presentation of gross margin and operating expenses may include (i) additional depreciation and amortization from changes in estimated useful life and the write-down of certain property, plant and equipment and intangibles, (ii) charges such as severance, benefits and outplacement costs related to restructuring plans with a specific and defined term, (iii) costs for facilities not required for ongoing operations, and costs related to the relocation of certain equipment from these facilities and/or contract manufacturer facilities, (iv) stock-based compensation, (v) amortization expense related to acquired intangibles, (vi) amortization expense related to acquisition related inventory step-up, (vii) changes in fair value of contingent consideration liabilities, (viii) acquisition related transaction and integration costs related to acquired entities, (ix) significant legal settlements and other contingencies and (x) other charges unrelated to our core operating performance comprised mainly of other costs and contingencies unrelated to current and future operations, including transformational initiatives such as the implementation of simplified automated processes, site consolidations, and reorganizations. The Company excludes these items in calculating non-GAAP operating margin, non-GAAP net income and non-GAAP EPS.

Non-cash interest expense and other expense: The Company excludes certain expenses, including loss on debt extinguishment, accretion of debt discount, and other non-cash activities that management believes are not reflective of such ordinary, ongoing and core operating activities, when calculating non-GAAP net income and non-GAAP EPS.

Income tax expense or benefit: The Company excludes certain non-cash tax expense or benefit items, such as (i) the utilization of net operating losses (NOLs) where valuation allowances were released, (ii) intra-period tax allocation benefit and (iii) the tax effect for amortization of non-tax deductible intangible assets, in calculating non-GAAP net income and non-GAAP EPS.

Non-GAAP financial measures are not in accordance with, preferable to, or an alternative for, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to non-GAAP operating income is operating income. The GAAP measure most directly comparable to non-GAAP operating margin is operating margin. The GAAP measure most directly comparable to non-GAAP net income is net income. The GAAP measure most directly comparable to non-GAAP EPS is earnings per share.

VIAVI SOLUTIONS INC.
RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS
TO NON-GAAP MEASURES
(in millions, except per share data)
(unaudited)
PRELIMINARY
The following tables reconcile GAAP measures to non-GAAP measures:
	Three Months Ended								Nine Months Ended
	March 28, 2026				March 29, 2025				March 28, 2026				March 29, 2025
	Gross Profit		Gross Margin		Gross Profit		Gross Margin		Gross Profit		Gross Margin		Gross Profit		Gross Margin
GAAP measures	$   234.1		57.5 %		$   160.7		56.4 %		$   613.7		57.1 %		$   457.6		57.6 %
Stock-based compensation	1.1		0.3 %		2.0		0.7 %		3.2		0.3 %		4.5		0.6 %
Other charges unrelated to core operating performance (1)	3.8		1.0 %		0.3		0.1 %		5.2		0.5 %		0.4		0.1 %
Amortization of acquisition related inventory step-up	0.9		0.2 %		1.7		0.6 %		6.1		0.5 %		1.7		0.2 %
Amortization of intangibles	13.0		3.2 %		6.1		2.2 %		32.4		3.0 %		12.7		1.6 %
Total related to Cost of Revenues	18.8		4.7 %		10.1		3.6 %		46.9		4.3 %		19.3		2.5 %
Non-GAAP measures	$   252.9		62.2 %		$   170.8		60.0 %		$   660.6		61.4 %		$   476.9		60.1 %
	Three Months Ended								Nine Months Ended
	March 28, 2026				March 29, 2025				March 28, 2026				March 29, 2025
	Operating Income		Operating Margin		Operating  Income		Operating Margin		Operating Income		Operating Margin		Operating Income		Operating Margin
GAAP measures	$    24.8		6.1 %		$     8.5		3.0 %		$    43.8		4.1 %		$    42.2		5.3 %
Stock-based compensation	13.9		3.4 %		14.1		4.9 %		41.2		3.8 %		40.5		5.1 %
Change in fair value of contingent liability	2.6		0.6 %		2.5		0.9 %		24.3		2.3 %		(4.9)		(0.6) %
Acquisition and integration related charges	0.7		0.2 %		13.3		4.7 %		12.4		1.1 %		16.7		2.1 %
Other charges unrelated to core operating performance (2)	4.9		1.2 %		0.6		0.2 %		11.7		1.1 %		0.2		— %
Amortization of acquisition related inventory step-up	0.9		0.2 %		1.7		0.6 %		6.1		0.6 %		1.7		0.2 %
Amortization of intangibles	20.4		5.0 %		7.3		2.5 %		47.6		4.4 %		16.0		2.0 %
Restructuring and related charges (benefits)	17.3		4.3 %		(0.3)		(0.1) %		16.9		1.6 %		0.9		0.1 %
Litigation settlement	—		— %		—		— %		—		— %		(1.3)		(0.1) %
Total related to Cost of Revenues and Operating Expenses	60.7		14.9 %		39.2		13.7 %		160.2		14.9 %		69.8		8.8 %
Non-GAAP measures	$    85.5		21.0 %		$    47.7		16.7 %		$   204.0		19.0 %		$   112.0		14.1 %
	Three Months Ended								Nine Months Ended
	March 28, 2026				March 29, 2025				March 28, 2026				March 29, 2025
	Net Income		Diluted EPS		Net Income		Diluted EPS		Net (Loss) Income		Diluted EPS		Net  Income		Diluted EPS
GAAP measures	$     6.4		$    0.03		$    19.5		$    0.09		$   (63.1)		$   (0.28)		$    26.8		$    0.12
Items reconciling GAAP Net Income (Loss) and EPS to Non-GAAP Net Income and EPS:
Stock-based compensation	13.9		0.06		14.1		0.06		41.2		0.17		40.5		0.18
Change in fair value of contingent liability	2.6		0.01		2.5		0.01		24.3		0.11		(4.9)		(0.02)
Acquisition and integration related charges	0.7		—		13.3		0.06		12.4		0.05		16.7		0.08
Other charges unrelated to core operating performance (2)	4.9		0.02		0.6		—		11.7		0.05		0.2		—
Amortization of acquisition related inventory step-up	0.9		—		1.7		0.01		6.1		0.03		1.7		0.01
Amortization of intangibles	20.4		0.08		7.3		0.03		47.6		0.20		16.0		0.07
Restructuring and related charges (benefits)	17.3		0.07		(0.3)		—		16.9		0.07		0.9		—
Litigation settlement	—		—		—		—		—		—		(1.3)		(0.01)
Non-cash interest expense and other expense (3)	2.4		0.01		1.3		0.01		46.6		0.20		3.5		0.02
(Benefits from) provision for income taxes	(1.9)		(0.01)		(26.1)		(0.12)		8.5		0.04		(24.4)		(0.11)
Total related to Net Income and EPS	61.2		0.24		14.4		0.06		215.3		0.92		48.9		0.22
Non-GAAP measures	$    67.6		$    0.27		$    33.9		$    0.15		$   152.2		$    0.64		$    75.7		$    0.34
Shares used in per share calculation for Non-GAAP EPS			249.5				226.9				236.9				225.2

Note: Certain totals may not add due to rounding.

(1) Included in the three months ended March 28, 2026 are charges of $3.6 million charges related to the write off of property, plant and equipment and other charges unrelated to core operating performance.

(2) Included in the three months ended March 28, 2026 are charges of $3.9 million related to the write off of property, plant and equipment, $0.3 million of accelerated depreciation and other charges unrelated to core operating performance. In addition, included in the nine months ended March 28, 2026 are $3.5 million of losses on disposal of long-lived assets, $2.1 million charge for restoration services for a VIAVI facility impacted by a fire and other charges unrelated to core operating performance. Included in the nine months ended March 29, 2025 is a gain of $0.9 million on the sale of assets previously classified as held for sale and other charges unrelated to core operating performance.

(3) The Company incurred losses of $3.7 million and $46.2 million for the three and nine months ended March 28, 2026, respectively, in connection with the extinguishment of certain 1.625% Senior Convertible Notes and prepayments of the Term Loan B.

The preliminary financial schedules are estimated based on our current information.

 

VIAVI SOLUTIONS INC.
RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS
TO ADJUSTED EBITDA
(in millions, unaudited)
PRELIMINARY
	Three Months Ended				Nine Months Ended
	March 28, 2026		March 29, 2025		March 28, 2026		March 29, 2025
GAAP Net income (loss)	$              6.4		$            19.5		$           (63.1)		$            26.8
Interest and other (income) expense, net (1)	(3.3)		(2.2)		34.0		(9.3)
Interest expense	14.3		7.5		37.0		22.5
Provision for (benefit from) income taxes	7.4		(16.3)		36.1		2.2
Equity investment earnings	—		—		(0.2)		—
Depreciation	10.3		9.3		30.1		28.8
Amortization	20.4		7.3		47.6		16.0
EBITDA	55.5		25.1		121.5		87.0
Restructuring and related charges (benefits)	17.3		(0.3)		16.9		0.9
Stock-based compensation	13.9		14.1		41.2		40.5
Change in fair value of contingent liability	2.6		2.5		24.3		(4.9)
Acquisition and integration related charges	0.7		13.3		12.4		16.7
Other charges (benefits) unrelated to core operating performance (2)	4.6		0.6		11.3		(1.3)
Amortization of acquisition related inventory step-up	0.9		1.7		6.1		1.7
Adjusted EBITDA	$            95.5		$            57.0		$           233.7		$           140.6

Note: Certain totals may not add due to rounding.

(1) The Company incurred losses of $3.7 million and $46.2 million for the three and nine months ended March 28, 2026, respectively, in connection with the extinguishment of certain 1.625% Senior Convertible Notes and prepayments of the Term Loan B.

(2) Included in the three months ended March 28, 2026 are charges of $3.9 million related to the write off of property, plant and equipment and other charges unrelated to core operating performance. In addition, included in the nine months ended March 28, 2026 are $3.5 million of losses on disposal of long-lived assets, $2.1 million charge for restoration services for a VIAVI facility impacted by a fire and other charges unrelated to core operating performance. Included in the nine months ended March 29, 2025 is a gain of $0.9 million on the sale of assets previously classified as held for sale and other charges unrelated to core operating performance.

The preliminary financial schedules are estimated based on our current information.

 

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SOURCE VIAVI Financials

FAQ

What were VIAV (VIAVI) fiscal Q3 2026 revenue and year-over-year growth?

VIAVI reported $406.8M in fiscal Q3 2026 revenue, a 42.8% increase year-over-year. According to the company, strong demand in data center and aerospace and defense drove the growth, with Network and Service Enablement up 54.4% YoY.

How did VIAV's GAAP and non-GAAP profitability compare in Q3 2026?

GAAP operating margin was 6.1%, while non-GAAP operating margin was 21.0% in Q3 2026. According to the company, non-GAAP measures exclude certain items and show a larger margin improvement versus GAAP results.

What guidance did VIAV give for fiscal Q4 2026 revenue and earnings?

VIAVI guided fiscal Q4 2026 net revenue of $427M–$437M and non-GAAP EPS of $0.29–$0.31. According to the company, it did not reconcile GAAP EPS to non-GAAP due to forecasting uncertainties for certain reconciling items.

What were VIAV's cash and debt positions at March 28, 2026?

As of March 28, 2026, VIAVI held $508.0M in cash and short-term investments and had a total net carrying value of debt of $1,080.8M. According to the company, debt includes convertible notes, senior notes, and Term Loan B.

Which VIAVI business segment led revenue growth in Q3 2026?

The Network and Service Enablement segment led growth with $321.5M, up 54.4% YoY. According to the company, demand from data center and aerospace and defense end markets contributed materially to that segment's performance.