(Amounts in $millions, except per share amounts, and other than revenue reflect non-GAAP)
KEY METRICS
HIGHLIGHTS
$469.3M
Non-GAAP Operating Income$136.1M
Non-GAAP Operating Margin29.0%
Non-GAAP EPS$0.47
56.9% Y/Y179.5% Y/Y
1270 bps Y/Y
213.3% Y/Y
Revenue, non-GAAP Operating Margin, non-GAAP EPS above the high end of the guidance range.
Non-GAAP Operating Margin and non-GAAP EPS include a net benefit of ~110bps and ~2 cents from tariff refunds offset by additional week of variable costs.
Cash flow from operating activities was $104.7 million and free cash flow was $92.7 million.
Incurred capex of $12.0 million.
Repurchased 3.9 million shares for ~$150 million at an average share price of $37.98.
VIAVI//Public © 2026 Viavi Solutions Inc. 2
Fiscal Q1 2027 NSE Highlights(Amounts in $millions and other than revenue reflect non-GAAP)
NSE
HIGHLIGHTS
Revenue
$376.1M
Gross Margin
66.2%
Operating Margin
25.5%
74.1% Y/Y 310 bps Y/Y1,730 bps Y/Y
Revenue at $376.1 million, above the high end of our guidance range of $360-$368 million, up 74.1% Y/Y driven by:
Strong demand for lab and production and field products mainly driven by the data center ecosystem and aerospace & defense products.
Acquisition of certain Spirent product lines.
Gross Margin at 66.2%, increased 310 basis points Y/Y mainly driven by tariff refunds and product mix.
Operating Margin at 25.5%, above our guidance range of 22.6%-23.6%, primarily driven by higher fall through.
The Company does not allocate stock-based compensation, including related employer payroll taxes, acquisition-related charges, amortization of intangibles, restructuring, impairment of goodwill or other charges unrelated to core operating performance to its segments. All non-GAAP amounts are reconciled to the corresponding GAAP amounts at the entity level in the Appendix section.
VIAVI//Public © 2026 Viavi Solutions Inc. 3
Fiscal Q1 2027 OSP Highlights(Amounts in $millions and other than revenue reflect non-GAAP)
OSP
HIGHLIGHTS
Revenue
$93.2M
Gross Margin
57.1%
Operating Margin
43.2%
12.2% Y/Y 460 bps Y/Y600 bps Y/Y
Revenue at $93.2 million, above high end of guidance range of $90-$92 million and increased 12.2% Y/Y, primarily driven by strength in anti-counterfeiting and other products and 3D Sensing.
Gross Margin at 57.1%, increased 460 basis points Y/Y, mainly due to higher volume and favorable product mix.
Operating Margin at 43.2%, in line with our guidance range of 43.0%-43.4%.
The Company does not allocate stock-based compensation, including related employer payroll taxes, acquisition-related charges, amortization of intangibles, restructuring, impairment of goodwill or other charges unrelated to core operating performance to its segments. All non-GAAP amounts are reconciled to the corresponding GAAP amounts at the entity level in the Appendix section.
VIAVI//Public © 2026 Viavi Solutions Inc. 4
Fiscal Q2 2027 Business OutlookSEGMENT | BUSINESS OUTLOOK | |
Revenue | VIAVI | $505 million to $515 million |
NSE | $426 million to $434 million | |
OSP | $79 million to $81 million | |
Non-GAAP Operating Margin | VIAVI | 29.3%, plus or minus 30 bps |
NSE | 28.1%, plus or minus 30 bps | |
OSP | 35.7%, plus or minus 20 bps |
Non-GAAP Tax | $12.0 million, plus or minus $0.5 million |
Non-GAAP Other (Income) & Expense | $3.5 million |
Non-GAAP Share Count | 264.0 million |
Non-GAAP EPS
$0.50 to $0.52
With respect to our business outlook above, the Company has not reconciled GAAP measures to non-GAAP measures presented above.
VIAVI//Public © 2026 Viavi Solutions Inc. 5
Fiscal Q2 2027 EventsDATE | EVENT | LOCATION |
Nov 18, 2026 | 7th Annual Needham Virtual Tech Week | Virtual |
Dec 16, 2026 | Northland Growth Conference | Virtual |
VIAVI//Public © 2026 Viavi Solutions Inc. 6
Additional Financial Information Fiscal Q1 2027 Financial Highlights(Amounts in $millions, except per share amounts)
FISCAL QUARTER | Q1 2027 | Q4 2026 | Q1 2026 | QOQ | YOY |
GAAP Revenue | |||||
NSE | $376.1 | $353.9 | $216.0 | 6.3% | 74.1% |
OSP | $93.2 | $89.2 | $83.1 | 4.5% | 12.2% |
Total | $469.3 | $443.1 | $299.1 | 5.9% | 56.9% |
Non-GAAP Gross Margin | |||||
NSE | 66.2% | 64.1% | 63.1% | 210 bps | 310 bps |
OSP | 57.1% | 55.2% | 52.5% | 190 bps | 460 bps |
Total | 64.4% | 62.3% | 60.1% | 210 bps | 430 bps |
Non-GAAP Operating Margin | |||||
NSE | 25.5% | 20.0% | 8.2% | 550 bps | 1,730 bps |
OSP | 43.2% | 40.0% | 37.2% | 320 bps | 600 bps |
Total | 29.0% | 24.0% | 16.3% | 500 bps | 1,270 bps |
Non-GAAP Earnings Per Share | $0.47 | $0.34 | $0.15 | 38.2% | 213.3% |
GAAP Operating Cash Flow | $104.7 | $66.7 | $31.0 | 57.0% | 237.7% |
Beginning in the fourth quarter of fiscal 2026, the Company modified its non-GAAP presentation to exclude employer payroll taxes related to stock-based compensation. Prior period results have been recast to conform to the current presentation.
All non-GAAP amounts are reconciled to the corresponding GAAP amounts in the Appendix section.
VIAVI//Public © 2026 Viavi Solutions Inc. 8
Revenue by Business Segment and Geographic Region(Amounts in $millions)
FISCAL QUARTER | Q1 2027 | Q4 2026 | Q1 2026 | QOQ | YOY | |||
Segment Mix | ||||||||
NSE | $376.1 | 80.1% | $353.9 | 79.9% | $216.0 | 72.2% | 6.3% | 74.1% |
OSP | $93.2 | 19.9% | $89.2 | 20.1% | $83.1 | 27.8% | 4.5% | 12.2% |
Total | $469.3 | 100.0% | $443.1 | 100.0% | $299.1 | 100.0% | 5.9% | 56.9% |
Region Mix | ||||||||
Americas | $206.0 | 43.9% | $200.5 | 45.2% | $128.8 | 43.1% | 2.7% | 59.9% |
Asia-Pacific | $162.7 | 34.7% | $141.5 | 31.9% | $92.1 | 30.8% | 15.0% | 76.7% |
EMEA | $100.6 | 21.4% | $101.1 | 22.9% | $78.2 | 26.1% | (0.5%) | 28.6% |
Total | $469.3 | 100.0% | $443.1 | 100.0% | $299.1 | 100.0% | 5.9% | 56.9% |
VIAVI//Public © 2026 Viavi Solutions Inc. 9
Balance Sheet Highlights(Amounts in $millions)
FISCAL QUARTER | Q1 2027 |
Total Cash Balance (1) | $535.3 |
Short-term Debt (Carrying Value) (2) | $245.1 |
Long-term Debt (Carrying Value) (3) | $397.4 |
GAAP Cash from Operations | $104.7 |
(1) Includes cash and cash-equivalents, short-term investments and short-term restricted cash.
(2) Carrying value equals outstanding principal amount less the unamortized debt issuance costs. Face amount for short-term debt is $250.0 million related to the 2031 0.625% Convertible Notes.
(3) Carrying value equals outstanding principal amount less the unamortized debt issuance costs. Face amount for long-term debt is $400.0 million related to the 2029 3.75% High-Yield Notes.
VIAVI//Public © 2026 Viavi Solutions Inc. 10
Term Notes Summary2029 HIGH-YIELD | NOTES | 2031 SENIOR CONVERTIBLE NOTES | |
Issue Size | $400.0M | $250.0M | |
Current Outstanding * | $400.0M | $250.0M | |
Coupon | 3.75% | 0.625% | |
Final Maturity | 10/1/2029 | 3/1/2031 | |
Put Date | N/A | N/A | |
Call Date | 10/1/2024 | 9/6/2028 | |
Call / Put Price (%) | N/A | 100% | |
Conversion Price | N/A | $13.79 | |
Shares Underlying * | N/A | 18.1M | |
Settlement | Par in Cash | Par in Cash; Balance in stock & cash | |
* As of October 3, 2026
VIAVI//Public © 2026 Viavi Solutions Inc. 11
Income Statement(Amounts in $millions, except per share amounts)
FISCAL QUARTER | Q1 2027 | Q4 2026 | Q1 2026 | QOQ | YOY |
GAAP Revenue | $469.3 | $443.1 | $299.1 | 5.9% | 56.9% |
Non-GAAP Gross Margin | 64.4% | 62.3% | 60.1% | 210 bps | 430 bps |
Non-GAAP Operating Expenses | $165.9 | $169.8 | $131.2 | (2.3%) | 26.4% |
Non-GAAP Operating Profit | $136.1 | $106.4 | $48.7 | 27.9% | 179.5% |
Non-GAAP Operating Margin | 29.0% | 24.0% | 16.3% | 500 bps | 1270 bps |
Non-GAAP Net Income | $125.8 | $89.1 | $34.7 | 41.2% | 262.5% |
Non-GAAP EPS | $0.47 | $0.34 | $0.15 | $0.13 | $0.32 |
Beginning in the fourth quarter of fiscal 2026, the Company modified its non-GAAP presentation to exclude employer payroll taxes related to stock-based compensation. Prior period results have been recast to conform to the current presentation.
All non-GAAP amounts are reconciled to the corresponding GAAP amounts in the Appendix section.
VIAVI//Public © 2026 Viavi Solutions Inc. 12
Income from operations | 81.7 | 61.3 | 7.6 | 33.3 % | 975.0 % |
Interest and other income (expense) ,net | 10.3 | (7.4) | (2.5) | (239.2)% | (512.0)% |
(Amounts in $millions, except per share amounts) | ||||||
UNAUDITED GAAP INCOME STATEMENT | Q1 2027 | Q4 2026 | Q1 2026 | QOQ | YOY | |
Net revenue | $ 469.3 | $ 443.1 | $ 299.1 | 5.9 % | 56.9 % | |
Cost of revenues | 169.3 | 168.4 | 123.2 | 0.5 % | 37.4 % | |
Amortization of acquired technologies | 12.7 | 13.0 | 6.9 | (2.3)% | 84.1 % | |
Total cost of revenues | 182.0 | 181.4 | 130.1 | 0.3 % | 39.9 % | |
Gross profit | 287.3 | 261.7 | 169.0 | 9.8 % | 70.0 % | |
Operating expenses: | ||||||
Research and development | 69.5 | 69.8 | 56.0 | (0.4)% | 24.1 % | |
Selling, general and administrative | 129.5 | 124.3 | 104.2 | 4.2 % | 24.3 % | |
Amortization of other intangibles | 7.4 | 7.3 | 1.5 | 1.4 % | 393.3 % | |
Restructuring and related benefits | (0.8) | (1.0) | (0.3) | (20.0)% | 166.7 % | |
Total operating expenses | 205.6 | 200.4 | 161.4 | 2.6 % | 27.4 % | |
Interest expense (5.7) (10.4) (7.4) (45.2)% (23.0)% | ||||||
Income (loss) before income taxes and equity investment earnings | 86.3 | 43.5 | (2.3) | 98.4 % (3,852.2)% | ||
Provision for Income Taxes | 11.9 | 11.4 | 19.0 | 4.4 % (37.4)% | ||
Equity investment earnings (losses) | 1.6 | 0.6 | (0.1) | 166.7 % (1,700.0)% | ||
Net income (loss) | $ 76.0 | $ 32.7 | $ (21.4) | 132.4 % (455.1)% | ||
Net income (loss) per share, basic | $ 0.31 | $ 0.14 | $ (0.10) | 121.4 % | (410.0)% | |
Net income (loss) per share, diluted | $ 0.29 | $ 0.13 | $ (0.10) | 123.1 % | (390.0)% | |
Shares used in per-share calculation (basic) | 246.5 | 239.3 | 222.9 | 3.0 % | 10.6 % | |
Shares used in per-share calculation (diluted) | 266.2 | 261.0 | 222.9 | 2.0 % | 19.4 % | |
UNAUDITED % TOTAL GAAP REVENUE | Q1 2027 | Q4 2026 | Q1 2026 | QOQ | YOY |
Gross margin | 61.2 % | 59.1 % | 56.5 % | 210 bps | 470 bps |
Research and development | 14.8 % | 15.8 % | 18.7 % | (100 bps) | (390 bps) |
Selling, general and administrative | 27.6 % | 28.1 % | 34.8 % | (50 bps) | (720 bps) |
Total operating expenses | 43.8 % | 45.2 % | 54.0 % | (140 bps) | (1,020 bps) |
Operating margin | 17.4 % | 13.8 % | 2.5 % | 360 bps | 1,490 bps |
VIAVI//Public © 2026 Viavi Solutions Inc. 13
Non-GAAP Income Statement(Amounts in $millions, except per share amounts)
UNAUDITED NON-GAAP INCOME STATEMENT | Q1 2027 | Q4 2026 | Q1 2026 | QOQ | YOY |
Net revenue | $ 469.3 | $ 443.1 | $ 299.1 | 5.9 % | 56.9 % |
Cost of revenues | 167.3 | 166.9 | 119.2 | 0.2 % | 40.4 % |
Gross profit | 302.0 | 276.2 | 179.9 | 9.3 % | 67.9 % |
Operating expenses: | |||||
Research and development | 65.0 | 65.8 | 53.0 | (1.2)% | 22.6 % |
Selling, general and administrative | 100.9 | 104.0 | 78.2 | (3.0)% | 29.0 % |
Total operating expenses | 165.9 | 169.8 | 131.2 | (2.3)% | 26.4 % |
Income from operations | 136.1 | 106.4 | 48.7 | 27.9 % | 179.5 % |
Interest and other expense, net | (0.4) | (7.4) | (5.1) | (94.6)% | (92.2)% |
Income before income taxes and equity investment earnings | 135.7 | 99.0 | 43.6 | 37.1 % | 211.2 % |
Provision for income tax | 11.5 | 10.5 | 8.8 | 9.5 % | 30.7 % |
Net income | $ 125.8 $ 89.1 $ 34.7 41.2 % | 262.5 % | |||
Net income per share, basic | $ 0.51 | $ 0.37 | $ 0.16 | 37.8 % | 218.8 % |
Net income per share, diluted | $ 0.47 | $ 0.34 | $ 0.15 | 38.2 % | 213.3 % |
Equity investment earnings (losses) 1.6 0.6 (0.1) 166.7 % (1700.0)%
Shares used in per-share calculation (basic) 246.5 239.3 222.9 3.0 % 10.6 %
Shares used in per-share calculation (diluted) | 266.2 | 261.0 | 227.9 | 2.0 % | 16.8 % |
UNAUDITED % TOTAL REVENUE | Q1 2027 | Q4 2026 | Q1 2026 | QOQ | YOY |
Gross margin | 64.4 % | 62.3 % | 60.1 % | 210 bps | 430 bps |
Research and development | 13.9 % | 14.8 % | 17.7 % | (90 bps) | (380 bps) |
Selling, general and administrative | 21.5 % | 23.5 % | 26.1 % | (200 bps) | (460 bps) |
Total operating expenses | 35.4 % | 38.3 % | 43.9 % | (290 bps) | (850 bps) |
Operating margin | 29.0 % | 24.0 % | 16.3 % | 500 bps | 1,270 bps |
Beginning in the fourth quarter of fiscal 2026, the Company modified its non-GAAP presentation to exclude employer payroll taxes related to stock-based compensation. Prior period results have been recast to conform to the current presentation.
VIAVI//Public © 2026 Viavi Solutions Inc. 14
Appendix Reconciliation of GAAP Measures to Non-GAAP Measures(Amounts in $millions)
YOY
QOQ
Q1 2026
Q4 2026
Q1 2027
UNAUDITED
Gross Profit - GAAP to Non-GAAP Reconciliation
UNAUDITED
Operating Income - GAAP to Non-GAAP Reconciliation
Q1 2027
Q4 2026
Q1 2026
QOQ
YOY
UNAUDITED
Net Income GAAP to Non-GAAP Reconciliation
Q1 2027
Q4 2026
Q1 2026
QOQ
YOY
GAAP segment gross profit $ 287.3 $ 261.7 $ 169.0 9.8 % 70.0 %
Stock-based compensation 1.0 1.2 1.0 (16.7)% - %
Employer payroll tax on employee share-based awards 0.9 - 0.3 NM 200.0 %
Amortization of intangibles 12.7 13.0 6.9 (2.3)% 84.1 %
Other charges unrelated to core operating performance (1) 0.1 0.3 0.1 (66.7)% - % Amortization of acquisition related inventory step-up - - 2.6 - % (100.0)% Non-GAAP gross profit $ 302.0 $ 276.2 $ 179.9 9.3 % 67.9 %
GAAP operating income $ 81.7 $ 61.3 $ 7.6 33.3 % 975.0 %
Stock-based compensation 15.9 14.2 13.4 12.0 % 18.7 %
Employer payroll tax on employee share-based awards 5.7 0.2 1.6 2,750.0 % 256.3 %
Amortization of intangibles 20.1 20.3 8.4 (1.0)% 139.3 %
Change in fair value of contingent consideration 12.4 8.7 10.9 42.5 % 13.8 %
Acquisition and integration related charges 0.2 0.2 3.9 - % (94.9)%
Other charges unrelated to core operating performance (1) 0.9 2.5 0.6 (64.0)% 50.0 % Amortization of acquisition related inventory step-up - - 2.6 - % (100.0)%
Restructuring and related benefits (0.8) (1.0) (0.3) (20.0)% 166.7 %
$ 136.1 $ 106.4 $ 48.7 27.9 % 179.5 %
Non-GAAP operating income
GAAP net income $ 76.0 $ 32.7 $ (21.4) 132.4 % (455.1)%
Stock-based compensation 15.9 14.2 13.4 12.0 % 18.7 %
Employer payroll tax on employee share-based awards 5.7 0.2 1.6 2,750.0 % 256.3 %
Amortization of intangibles 20.1 20.3 8.4 (1.0)% 139.3 %
Restructuring and related benefits (0.8) (1.0) (0.3) (20.0)% 166.7 %
Change in fair value of contingent consideration 12.4 8.7 10.9 42.5 % 13.8 %
Acquisition and integration related charges 0.2 0.2 3.9 - % (94.9)%
Other charges unrelated to core operating performance (1) 0.9 2.5 0.6 (64.0)% 50.0 % Amortization of acquisition related inventory step-up - - 2.6 - % (100.0)%
Interest expense and other (income) expense, net (5.0) 10.4 4.8 (148.1)% (204.2)%
Income taxes 0.4 0.9 10.2 (55.6)% (96.1)%
Non-GAAP net income $ 125.8 $ 89.1 $ 34.7 41.2 % 262.5 %
(1) Other charges consists of net losses related to long-lived assets and other charges unrelated to core operating performance. NM - Percentage change not considered meaningful
VIAVI//Public © 2026 Viavi Solutions Inc. 16
Financial Information by Segment(Amounts in $millions and other than revenue reflect non-GAAP)
UNAUDITED | Q1 2027 | Q4 2026 | Q1 2026 | QOQ | YOY | |||
SEGMENT RESULTS ($ in millions) | ||||||||
Net revenue: | ||||||||
Network and Service Enablement | $ 376.1 | $ 353.9 | $ 216.0 | 6.3 % | 74.1 % | |||
Optical Securities and Performance Products | 93.2 | 89.2 | 83.1 | 4.5 % | 12.2 % | |||
Total net revenue | $ 469.3 | $ 443.1 | $ 299.1 | 5.9 % | 56.9 % | |||
Gross profit | ||||||||
Network and Service Enablement | $ 248.8 | $ 227.0 | $ 136.3 | 9.6 % | 82.5 % | |||
Optical Securities and Performance Products | 53.2 | 49.2 | 43.6 | 8.1 % | 22.0 % | |||
Total segment gross profit | $ 302.0 | $ 276.2 | $ 179.9 | 9.3 % | 67.9 % | |||
Operating income | ||||||||
Network and Service Enablement | $ 95.8 | $ 70.7 | $ 17.8 | 35.5 % | 438.2 % | |||
Optical Securities and Performance Products | 40.3 | 35.7 | 30.9 | 12.9 % | 30.4 % | |||
Total segment operating income | $ 136.1 | $ 106.4 | $ 48.7 | 27.9 % | 179.5 % | |||
UNAUDITED REVENUE BY SEGMENT (%) | Q1 2027 | Q4 2026 | Q1 2026 | QOQ | YOY | |||
Network and Service Enablement | 80.1 % | 79.9 % | 72.2 % | 20 bps | 790 bps | |||
Optical Securities and Performance Products | 19.9 % | 20.1 % | 27.8 % | (20 bps) | (790 bps) | |||
The Company does not allocate stock-based compensation, including related employer payroll taxes, acquisition-related charges, amortization of intangibles, restructuring, impairment of goodwill or other charges unrelated to core operating performance to its segments. All non-GAAP amounts are reconciled to the corresponding GAAP amounts at the entity level on the prior slide.
Beginning in the fourth quarter of fiscal 2026, the Company modified its non-GAAP presentation to exclude employer payroll taxes related to stock-based compensation. Prior period results have been recast to conform to the current presentation.
VIAVI//Public © 2026 Viavi Solutions Inc. 17
Condensed Balance Sheet(Amounts in $millions)
UNAUDITED BALANCE SHEET (in millions) | Q1 2027 | Q4 2026 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 526.7 | $ 647.8 | |
Short-term investments | 2.1 | 2.0 | |
Restricted cash | 6.5 | 6.9 | |
Accounts receivable, net | 335.0 | 351.3 | |
Inventories, net | 173.8 | 155.3 | |
Prepayments and other current assets | 91.3 | 93.2 | |
Total current assets | 1,135.4 | 1,256.5 | |
Property, plant and equipment, net | 231.1 | 224.5 | |
Goodwill, net | 705.3 | 700.7 | |
Intangibles, net | 371.0 | 377.6 | |
Deferred income taxes | 73.7 | 74.5 | |
Other non-current assets | 72.5 | 71.8 | |
Total assets | $ 2,589.0 | $ 2,705.6 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 106.3 | $ 92.2 | |
Accrued payroll and related expenses | 89.7 | 98.4 | |
Deferred revenue | 98.1 | 101.9 | |
Accrued expenses | 25.2 | 27.3 | |
Short-term debt | 245.1 | 244.8 | |
Other current liabilities | 122.8 | 115.9 | |
Total current liabilities | 687.2 | 680.5 | |
Long-term debt | 397.4 | 397.1 | |
Other non-current liabilities | 180.1 | 179.5 | |
Total stockholders' equity | 1,324.3 | 1,448.5 | |
Total liabilities and stockholders' equity | $ 2,589.0 | $ 2,705.6 | |
VIAVI//Public © 2026 Viavi Solutions Inc. 18
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