Viavi Solutions (VIAV) Q2 2026 earnings summary

Executive summary

• Fiscal Q2 2026 revenue reached $369.3M, up 36.4% year-over-year, at the high end of guidance, driven by acquisitions and strong demand in data center and aerospace/defense markets.

• Non-GAAP net income was $51.5M, up 75.2% year-over-year; non-GAAP EPS was $0.22, up 69.2%, exceeding guidance.

• GAAP net loss was $48.1M, compared to net income of $9.1M in the prior year, mainly due to debt extinguishment and higher operating expenses.

• Operating margin (non-GAAP) was 19.3%, up 440 bps year-over-year; GAAP operating margin was 3.1%.

• Major acquisitions included Spirent's HSE and CE business and Inertial Labs, contributing significantly to Q2 revenue.

Financial highlights

• NSE revenue was $291.5M, up 45.8% year-over-year; OSP revenue was $77.8M, up 9.7% year-over-year.

• Non-GAAP gross margin was 61.8%, up 70 bps year-over-year; GAAP gross margin was 57.0%, down from 59.4% due to increased amortization.

• Cash and short-term investments ended at $772.1M; cash from operations was $42.5M for the quarter.

• CapEx was $5.6M, down from $8.2M year-over-year.

• Adjusted EBITDA for the quarter was $81.4M, up from $50.1M a year ago.

Outlook and guidance

• Q3 2026 revenue expected at $386–$400M; NSE $304–$316M; OSP $82–$84M.

• Non-GAAP EPS expected at $0.22–$0.24; operating margin at 19.7% ±50 bps.

• Q3 to include full 13 weeks of Spirent product lines, supporting sequential growth.

• Restructuring plan targets $30M in annualized cost savings, with most charges recognized by June 2026.

• Management focused on revenue and earnings growth, market share expansion, and capital structure optimization.