About VIAVI Solutions Inc.
VIAVI Solutions (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Its 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, VIAVI develops and advances technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.
Key Financial Highlights
Net revenue of $369.3 million, up 36.4 % year-over-year. GAAP operating margin of 3.1%, down from prior year. Non-GAAP operating margin of 19.3%, up year-over-year. GAAP net loss of $48.1 million. Non-GAAP net income of $51.5 million, up about 75% vs. prior year. GAAP EPS of $(0.21) per share and non-GAAP EPS of $0.22 per share.
Restructuring Plan
On January 23, 2026, the Company approved a restructuring plan to improve operational efficiencies, better align the its workforce with current business needs and strategic growth opportunities and includes integration of recently acquired businesses. The plan includes a global workforce reduction, facilities rationalization and asset write-offs.
The Company expects approximately 5% of its global workforce to be affected. The Company estimates it will incur total charges of approximately $32 million in connection with the restructuring plan, including approximately $24 million in cash expenditures, primarily related to employee severance and related costs. The Company expects to recognize the majority of these charges by the end of June 2026 with the restructuring plan substantially completed by the end of calendar 2026. The Company anticipates the restructuring plan to result in approximately $30 million in annualized cost savings upon completion.
Third Quarter 2026 Outlook
For the third quarter of fiscal 2026 ending March 28, 2026, the Company expects net revenue to be between $386 million to $400 million and non-GAAP EPS to be between $0.22 to $0.24.
Summary
In short, VIAVI delivered strong revenue growth and profitability on a non-GAAP basis, despite a GAAP loss, and outlined cost-efficiency steps and positive near-term guidance.
