Viavi Solutions (VIAV) investor relations material

Executive summary

• Fiscal Q3 2026 revenue reached $406.8M, up 42.8% year-over-year and 10.2% sequentially, exceeding guidance, driven by strong demand in data center, aerospace, and defense markets.

• Non-GAAP operating income was $85.5M, up 79.2% year-over-year; non-GAAP EPS was $0.27, up 80% year-over-year.

• Operating cash flow was negative $26.3M, impacted by contingent consideration and working capital timing.

• Spirent and Inertial Labs acquisitions contributed significantly to revenue growth and expanded the customer base.

• No share repurchases in the quarter, with capital allocation focused on debt management.

Financial highlights

• Net revenue was $406.8M, up 10.2% sequentially and 42.8% year-over-year, above guidance.

• Non-GAAP gross margin was 62.2% (up 220 bps YoY); GAAP gross margin was 57.5%.

• Non-GAAP operating margin reached 21%, up 430 bps year-over-year; GAAP operating margin was 6.1%.

• Non-GAAP net income was $67.6M (up 99.4% YoY); GAAP net income was $6.4M, down 67.2% due to restructuring and other charges.

• Cash and short-term investments ended at $508M, down from $772.1M in Q2 due to debt repayments and earn-out payments.

Outlook and guidance

• Q4 2026 revenue expected between $427M and $437M, with sequential growth in both NSE and OSP segments.

• Non-GAAP operating margin projected at 22.7% ±50 bps; non-GAAP EPS expected between $0.29 and $0.31.

• Continued strong demand anticipated in data center and aerospace/defense markets through calendar 2026.