VIAVI SOLUTIONS INC. (VIAV): Results of Operations and Financial Condition
VIAVI SOLUTIONS INC. (VIAV) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 VIAVI Announces Fiscal Fourth Quarter and Fiscal Year 2026 Results Chandler, Arizona, August 5, 2026 — VIAVI (NASDAQ: VIAV) today reported results for its fiscal fourth quarter and fiscal year ended June 27, 2026 with the following highlights. Fourth Quarter • Net re
How this was made
The 30-second read
Why it matters
Traders can update valuation and positioning based on the reported revenue and margin expansion plus the explicit Q1 FY2027 revenue and non-GAAP EPS ranges.
Market read
A same-day earnings and guidance disclosure with concrete ranges for Q1 FY2027 supports near-term trading decisions.
What to watch
The release does not provide GAAP-to-non-GAAP EPS reconciliation for Q1, which can increase uncertainty around GAAP earnings quality despite the non-GAAP guide.
VIAVI reported fiscal fourth-quarter net revenue of $443.1 million, up 52.5% year-over-year, and guided first-quarter fiscal 2027 net revenue to between $450 million to $460 million.
Fourth-quarter revenue, GAAP and non-GAAP operating margins, GAAP net income, non-GAAP net income, and GAAP and non-GAAP diluted EPS all increased year-over-year. Both reported segments grew year-over-year, led by Network and Service Enablement. The company also guided first-quarter fiscal 2027 revenue above the fiscal fourth-quarter reported level.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 net revenueGAAP | $443.1 million | 8.9% | 52.5% |
| Q4 gross marginGAAP | 59.1% | 160 bps | 280 bps |
| Q4 operating marginGAAP | 13.8% | 770 bps | 850 bps |
| Q4 income from operationsGAAP | $61.3 million | 147.2% | 300.7% |
| Q4 net incomeGAAP | $32.7 million | – | 308.8% |
| Q4 diluted earnings per shareGAAP | $0.13 | 333.3% | 225.0% |
| Q4 gross marginnon-GAAP | 62.3% | 10 bps | 220 bps |
| Q4 operating marginnon-GAAP | 24.0% | 280 bps | 960 bps |
| Q4 income from operationsnon-GAAP | $106.4 million | 23.1% | 153.9% |
| Q4 net incomenon-GAAP | $89.1 million | – | 200.0% |
| Q4 diluted earnings per sharenon-GAAP | $0.34 | 25.9% | 161.5% |
| FY 2026 net revenueGAAP | $1,518.3 million | – | 40.0% |
| FY 2026 gross marginGAAP | 57.7% | – | 40 bps |
| FY 2026 operating marginGAAP | 6.9% | – | 160 bps |
| FY 2026 income from operationsGAAP | $105.1 million | – | 82.8% |
| FY 2026 net lossGAAP | $30.4 million | – | down $65.2 million or 187.4% year-over-year |
| FY 2026 diluted earnings per shareGAAP | $(0.13) | – | (186.7)% |
| FY 2026 gross marginnon-GAAP | 61.7% | – | 160 bps |
| FY 2026 operating marginnon-GAAP | 20.6% | – | 630 bps |
| FY 2026 income from operationsnon-GAAP | $312.9 million | – | 101.6% |
| FY 2026 net incomenon-GAAP | $243.8 million | – | 128.5% |
| FY 2026 diluted earnings per sharenon-GAAP | $1.00 | – | 112.8% |
| Q4 cash flows from operationsother | $66.7 million | – | – |
| FY 2026 cash flows from operationsother | $113.9 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Network and Service EnablementNo segment-specific driver was reported. | $353.9 million | 10.1% | 69.2% |
| Optical Security and Performance ProductsNo segment-specific driver was reported. | $89.2 million | 4.6% | 9.6% |
| Network and Service Enablement, FY 2026No segment-specific driver was reported. | $1,182.9 million | – | 52.3% |
| Optical Security and Performance Products, FY 2026No segment-specific driver was reported. | $335.4 million | – | 9.0% |
First quarter of fiscal 2027 ending October 3, 2026 outlook
- Revenuebetween $450 million to $460 million
- NoteNon-GAAP EPS to be between $0.40 to $0.42.
What drove it
- The company cited strong growth in many of its end markets.
- The company identified diversification into datacenter ecosystem and aerospace and defense end markets as a key growth driver during FY26.
- Network and Service Enablement revenue increased 69.2% year-over-year in the fourth quarter and 52.3% year-over-year in FY 2026.
- Americas, Asia-Pacific and EMEA customers represented 45.0%, 30.9% and 24.1%, respectively, of total net revenue for the fiscal year ended June 27, 2026.
Concerns
- The company cited continuing general limited visibility across many product lines.
- Quarter-over-quarter product mix fluctuations can materially impact profitability measures due to broad gross-margin ranges across the portfolio.
- The company cited continuing decline of average selling prices across its businesses.
- The company cited notable seasonality and a significant level of in-quarter book-and-ship business.
- The company stated that financial results are preliminary and subject to change because it had not filed its Form 10-K for the year ended June 27, 2026.
What to watch
- First-quarter fiscal 2027 net revenue guidance of between $450 million to $460 million.
- First-quarter fiscal 2027 non-GAAP EPS guidance of between $0.40 to $0.42.
- Execution of the diversification strategy in datacenter ecosystem and aerospace and defense end markets.
- Product mix fluctuations and their impact on profitability measures.
- Integration and expected benefits and savings related to the acquisition of the high-speed ethernet, network security and channel emulation testing business of Spirent Communications plc.
Balance sheet and cash flow
- As of June 27, 2026, the Company held $656.7 million in total cash, short-term investments and short-term restricted cash.
- As of June 27, 2026, the Company had $250.0 million aggregate principal amount of 0.625% Senior Convertible Notes and $400.0 million aggregate principal amount of 3.75% Senior Notes with a total net carrying value of $641.9 million.
- During the fiscal quarter and fiscal year ended June 27, 2026, the Company generated $66.7 million and $113.9 million, respectively, of cash flows from operations.
Analysis
VIAVI closed fiscal 2026 with strong fourth-quarter growth. Net revenue was $443.1 million, up 52.5% year-over-year and 8.9% sequentially. Network and Service Enablement was the principal source of growth, with revenue of $353.9 million, up 69.2% year-over-year, while Optical Security and Performance Products revenue of $89.2 million increased 9.6% year-over-year. Management attributed performance to strong growth in many end markets and identified its diversification into datacenter ecosystem and aerospace and defense as a key FY26 growth driver.
Profitability improved sharply in the fourth quarter. GAAP gross margin was 59.1%, up 280 bps year-over-year, and GAAP operating margin was 13.8%, up 850 bps year-over-year. Non-GAAP gross margin reached 62.3%, up 220 bps, while non-GAAP operating margin reached 24.0%, up 960 bps. GAAP income from operations was $61.3 million and non-GAAP income from operations was $106.4 million. GAAP net income was $32.7 million and non-GAAP net income was $89.1 million.
For FY 2026, revenue was $1,518.3 million, up 40.0% year-over-year. Network and Service Enablement revenue was $1,182.9 million, up 52.3%, while Optical Security and Performance Products revenue was $335.4 million, up 9.0%. Full-year GAAP operating margin rose 160 bps to 6.9%, and non-GAAP operating margin rose 630 bps to 20.6%. Despite these operating improvements, the company reported a FY 2026 GAAP net loss of $30.4 million, while non-GAAP net income was $243.8 million.
Liquidity included $656.7 million in total cash, short-term investments and short-term restricted cash as of June 27, 2026. The company reported $641.9 million in total net carrying value for its Senior Convertible Notes and Senior Notes. Cash flows from operations were $66.7 million in the fiscal fourth quarter and $113.9 million for FY 2026. No repurchases, dividends, or other capital-return activity were reported in the release.
For the first quarter of fiscal 2027 ending October 3, 2026, VIAVI expects net revenue between $450 million to $460 million and non-GAAP EPS between $0.40 to $0.42. The release does not provide gross-margin, operating-expense, tax-rate, or GAAP EPS guidance. Management also warned of limited visibility, product-mix variability, average selling price declines, seasonality, in-quarter book-and-ship activity, integration execution, and other market and supply-chain risks. The company noted that the reported results are preliminary because its Form 10-K for the year ended June 27, 2026 had not been filed.
Management, verbatim
VIAVI's fourth quarter and fiscal year 2026 financial performance has exceeded our expectations, driven by strong growth in many of our end markets. Our diversification strategy into datacenter ecosystem and aerospace and defense end markets has been a key growth driver for us during FY26, and we expect this strategy to continue driving our growth for the next several quarters.
Oleg Khaykin, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter Q4 GAAP net income.
- Prior-year Q4 GAAP net income.
- Prior-quarter Q4 non-GAAP net income.
- Prior-year Q4 non-GAAP net income.
- Prior-year FY 2026 GAAP net loss.
- Prior-year FY 2026 non-GAAP net income.
- Free cash flow.
- Capital-return activity, including share repurchases and dividends.
- First-quarter fiscal 2027 gross-margin guidance.
- First-quarter fiscal 2027 operating-expense guidance.
- First-quarter fiscal 2027 tax-rate guidance.
- First-quarter fiscal 2027 GAAP EPS guidance.
- Prior outlook for comparison with actual results.
- Segment-specific revenue drivers.
- GAAP reconciliation for first-quarter fiscal 2027 non-GAAP EPS guidance.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K furnishing VIAVI’s fiscal Q4 and FY2026 results (ended June 27, 2026) and first-quarter FY2027 outlook.
Ticker impact
VIAVI reported fiscal Q4 and FY2026 results, including net revenue growth, margin expansion, and GAAP and non-GAAP EPS changes.
Likely positive bias for the next session and into Q1 positioning, assuming guidance is viewed as credible versus Street expectations.
The 8-K includes specific Q4 and FY2026 financial results and explicit Q1 FY2027 net revenue ($450M-$460M) and non-GAAP EPS ($0.40-$0.42) ranges, which are actionable for traders.
Market effects
Test and measurement and optical equipment peers may see read-across on datacenter ecosystem and aerospace-defense demand strength.
Revenue mix by Americas, Asia-Pacific, and EMEA is disclosed, which can inform regional demand expectations.
Datacenter and defense-related optical/test demand signals may influence broader optics and networking equipment sentiment.
Counterpoint
Non-GAAP profitability improvement may be less durable if underlying demand normalizes or if restructuring and integration charges recur.
Key entities
- companyVIAVI Solutions Inc.
NASDAQ-listed test and measurement and optical technologies provider reporting FY2026 results and Q1 FY2027 guidance.
- executiveOleg Khaykin
President and CEO cited for commentary on diversification into datacenter ecosystem and aerospace and defense end markets.
