VIAV · Viavi Solutions Inc.

Viavi Solutions delivered strong Q3 FY2026 preliminary results, with net revenue surging 42.8% year-over-year to $406.8 million, primarily fueled by 54.4% growth in the Network and Service Enablement segment to $321.5 million, while Optical Security and Performance Products grew 11.4% to $85.3 million. CEO Oleg Khaykin highlighted robust demand from data center and aerospace/defense end markets as key drivers exceeding expectations, positioning these as ongoing growth engines. Profitability expanded meaningfully, with GAAP operating margin rising 310 basis points to 6.1% and non-GAAP margin climbing 430 basis points to 21.0%, reflecting improved gross margins (GAAP 57.5%, non-GAAP 62.2%) and operational leverage despite $17.3 million in restructuring charges. GAAP net income fell to $6.4 million due to higher expenses, but non-GAAP net income more than doubled to $67.6 million, driving non-GAAP diluted EPS to $0.27, up 80% YoY. Balance sheet shows $508 million in liquidity against $1,080.8 million net debt carrying value, with $26.3 million cash used in operations mainly from contingent consideration. Q4 guidance signals continued momentum, projecting revenue growth to $427-437 million and non-GAAP EPS of $0.29-0.31. Results are preliminary pending 10-Q filing; Exhibit 99.1 furnishes full details.