Core Insights - VIAVI Solutions Inc. reported strong fiscal second-quarter results for 2026, with earnings per share of $0.22 and revenue of $369.3 million, exceeding analysts' expectations [2][6] - The company's revenue grew by 36.4% year-over-year, driven by demand in the Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments [3][6] - Despite a net loss of $48.1 million, the company maintains a positive return on equity of 13.43% and a moderate debt-to-equity ratio of 1.53 [4][5] Financial Performance - Revenue for the NSE segment rose by 45.8% to $291.5 million, supported by data centers and 5G network upgrades [3] - The OSP segment benefited from increased sales in aerospace and defense markets [3] - VIAVI's guidance for Q3 2026 projects earnings per share between $0.22 and $4.00, with anticipated revenues of $386 million to $400 million [5] Management Activity - Oleg Khaykin, President, CEO, and director of VIAVI Solutions, sold 70,000 shares at $24.50 each, retaining 1,779,437 shares [1][6]

A strong stock as of late has been Viav Solutions (VIAV) . Shares have been marching higher, with the stock up 41.3% over the past month. The stock hit a new 52-week high of $26.08 in the previous session. Viav Solutions has gained 43.6% since the start of the year compared to the 2.3% gain for the Zacks Computer and Technology sector and the 20.7% return for the Zacks Communication - Components industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it has ...

Core Insights - Viavi Solutions Inc. (NASDAQ:VIAV) experienced a significant stock performance, soaring by 30.17% week-on-week, attributed to a corporate restructuring initiative aimed at achieving $30 million in annual cost savings [1] - The stock reached a peak of $24.99, its highest in over two decades, before closing at $24.46, down 0.97% on the day [2] - The restructuring will involve layoffs of approximately 15% of the workforce, facility rationalization, and asset write-offs, with an expected charge of $32 million for severance payments [3] Financial Performance - In Q2 ending December 2025, Viavi Solutions reported a net loss of $48.1 million, a reversal from a net income of $9.1 million in the same quarter the previous year, despite a 36% increase in net revenues to $369.3 million [4] - For the six-month period, the net loss was $69.5 million, compared to a net income of $7.3 million in the same period last year, with revenues increasing by 31% to $668.4 million [5] Restructuring Timeline - The restructuring initiative is expected to be completed by June 2026 [3]

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We recently published 10 Big Names With Explosive Gains.  Viavi Solutions Inc. (NASDAQ:VIAV) was one of the top performers on Thursday. Viavi Solutions soared to a new record high in more than two decades, as investor sentiment was fueled by a new corporate restructuring initiative that is expected to result in annual savings of $30 million. At intra-day trading, the stock soared to its highest price of $24.95 before trimming gains to finish the day just up by 17.45 percent at $24.70 apiece. The last tim ...

Financial Performance - Net revenue for the second quarter of fiscal 2026 was $369.3 million, an increase of $98.5 million or 36.4% year-over-year[207] - GAAP net loss was $48.1 million, a decrease of $57.2 million or 628.6% year-over-year[207] - Non-GAAP net income reached $51.5 million, up $22.1 million or 75.2% year-over-year[207] - Non-GAAP diluted EPS was $0.22, an increase of $0.09 or 69.2% year-over-year[207] - Total net revenue increased by $98.5 million, or 36.4%, for the three months ended December 27, 2025, compared to the same period a year ago[218] - Total net revenue increased by $159.4 million, or 31.3%, for the six months ended December 27, 2025, compared to the same period a year ago[219] - Product revenues increased by $91.6 million, or 40.6%, for the three months ended December 27, 2025, driven by volume increases in NSE and OSP[220] - Product revenues increased by $151.5 million, or 35.8%, for the six months ended December 27, 2025, driven by volume increases in NSE and OSP[221] - Service revenues increased by $6.9 million, or 15.3%, for the three months ended December 27, 2025, driven by a volume increase in NSE[222] - Service revenues increased by $7.9 million, or 9.2%, for the six months ended December 27, 2025, driven by a volume increase in NSE[223] Acquisitions and Contributions - The acquisition of Spirent Communications contributed net revenues of $43.0 million, while Inertial Labs added $21.1 million[202] - The acquisitions of Spirent's HSE and CE business and Inertial Labs contributed $43.0 million and $21.1 million, respectively, during the three months ended December 27, 2025[218] Margins and Expenses - GAAP operating margin was 3.1%, down 510 basis points year-over-year, while non-GAAP operating margin improved to 19.3%, up 440 basis points[207] - Gross margin decreased by 2.4 percentage points to 57.0% for the three months ended December 27, 2025, primarily due to increased amortization of intangibles[230] - Research and Development (R&D) expense increased by $13.8 million, or 26.5%, during the three months ended December 27, 2025, driven by costs from recent acquisitions[233] - Selling, General and Administrative (SG&A) expense rose by $42.8 million, or 50.8%, during the three months ended December 27, 2025, largely due to acquisition-related costs[236] - Amortization of acquired technologies increased by $9.2 million, or 278.8%, during the three months ended December 27, 2025, due to intangibles from recent acquisitions[229] Future Outlook - The company expects continued growth in the NSE segment driven by end market demand and acquisitions[204] - The company plans to invest in secular trends to drive growth and expand its total addressable market (TAM)[206] - The company expects to face industry and market risks, including uncertainty around customer procurement decisions and the adoption of 5G technology[224] - Pricing pressures and competition from Asia-based competitors may affect revenues and profitability[225] Cash Flow and Financing - Cash provided by operating activities was $73.5 million, with a net loss of $69.5 million adjusted for non-cash charges totaling $162.9 million[274] - Cash used in investing activities totaled $412.6 million, primarily for the acquisition of Spirent's HSE and CE business[275] - Cash provided by financing activities was $680.6 million, mainly from a $600 million Term Loan B issuance[276] Pension and Liabilities - The pension plans in the U.K. and India are fully funded, while the German plans are unfunded, resulting in an under-funding of $50.9 million as of December 27, 2025[282] - The fair value of pension plan assets increased approximately 1.2% since June 28, 2025[282] - A 50-basis point change in the discount rate would result in a corresponding increase or decrease in the post-retirement benefit obligation (PBO) of approximately $4.0 million[288] - The company is responsible for a non-pension post-retirement benefit obligation of $0.3 million from a past acquisition[283] - The fair value of contingent purchase consideration liabilities is remeasured at each reporting period, with significant judgment involved in the estimates[287] Market and Geographic Information - The company operates in three geographic regions: Americas, Asia-Pacific, and EMEA, with net revenue assigned to the region where products are initially shipped[226] - Net revenue from customers outside the Americas represented 53.7% of total net revenue during the three months ended December 27, 2025, compared to 57.1% in the same period of the previous year[227] Risk Management - The company's market risk related to foreign exchange and interest rates has not changed materially since the last annual report[289] - The accounting estimates used in the financial statements are based on historical experience and reasonable assumptions, but actual results may differ materially[286] - Recent accounting pronouncements may affect the consolidated financial statements, as detailed in the relevant note[285]

Key Takeaways Viavi posted Q2 FY26 revenues of $369.3M, up 36.4% year over year, with results topping estimates.VIAV's NSE segment rose 45.8% to $291.5M, driven by data center demand and ongoing 5G and fiber upgrades.VIAVI sees Q3 FY26 revenues of $386-$400M, with OSP boosted by defense demand.Viavi Solutions Inc. (VIAV) reported strong second-quarter fiscal 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate.The company posted a solid 36.4% year-over-year increase in revenu ...

Core Insights - VIAVI Solutions has launched the IRINS, a Low Earth Orbit (LEO)-aided inertial navigation system designed for full operation across land, air, and sea in denied, degraded, and disrupted space operating environments (D3SOE) [1][2] Group 1: Product Features - The IRINS integrates an inertial navigation system (INS), an altitude and heading reference system (AHRS), and a LEO PNT receiver, marking a significant advancement in VIAVI's assured Positioning, Navigation, and Timing (APNT) portfolio [1][4] - The system is designed to counter the increasing number of spoofing and jamming attacks affecting military and critical infrastructure, providing a resilient solution from a single vendor [2][3] - It combines capabilities to calculate altitude, position, velocity, and time data while minimizing bias to prevent drift, and includes a GNSS receiver with a Controlled Reception Pattern Antenna (CRPA) port for attack signal detection [4] Group 2: Strategic Importance - The IRINS represents VIAVI's strategy to mitigate vulnerabilities in positioning, navigation, and timing, integrating satellite-based timing with tactical-grade inertial measurement units (IMUs) for precise PNT in GNSS-denied environments [5] - Assured access to PNT is emphasized as critical for operations in contested environments, with the integration of Iridium PNT alongside VIAVI's INS and AHRS providing a resilient source of time and location data [5] Group 3: Technical Specifications - The IRINS is certified for IP67 and MIL-STD-810G environmental requirements, featuring a tactical-grade MEMS 3-axis accelerometer, gyroscope, and clock, along with embedded barometers and magnetometers [5] - The compact design measures 126.5 × 49.3 × 53.3 mm, housing all capabilities within a single enclosure [5]

Core Insights - Viavi Solutions reported strong fiscal second-quarter 2026 results, with net revenue of $369.3 million, which is at the high end of the company's guidance range, reflecting a 23.5% sequential increase and a 36.4% year-over-year growth [3][6] - The company experienced significant growth in its Network Service Enablement (NSE) segment, with revenue reaching $291.5 million, up 45.8% year-over-year, driven by acquisitions and strong demand in the data center ecosystem [5][6] - Viavi's non-GAAP operating margin improved to 19.3%, exceeding guidance and reflecting a 360 basis point increase from the prior quarter [2][6] Financial Performance - Revenue from Spirent was $43 million, slightly below expectations of $45 million to $55 million due to timing issues [1] - Non-GAAP earnings per share were $0.22, surpassing guidance of $0.18 to $0.20, and increased by $0.07 sequentially [2][6] - NSE gross margin was 64.7%, while operating margin improved to 15.6%, up from 8.7% in the same quarter last year [6] Balance Sheet and Cost Management - The company ended the quarter with $772.1 million in cash and short-term investments, an increase from $549.1 million in the previous quarter [9] - Viavi executed a restructuring plan impacting approximately 5% of its workforce, with expected annual savings of about $30 million [12] - The company exchanged about $100 million of convertible notes for shares and prepaid $100 million of its Term Loan B [10][11] Market Demand and Outlook - Demand from the data center ecosystem continues to drive growth, with management noting longer visibility in data center-related demand [13][14] - The company expects fiscal third-quarter 2026 revenue to be between $386 million and $400 million, with NSE revenue projected at $304 million to $316 million [15] - Viavi anticipates paying a $75 million earnout related to Inertial Labs in the third quarter due to strong performance [16]

Viav Solutions (VIAV) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +15.79%. A quarter ago, it was expected that this communications equipment company would post earnings of $0.13 per share when it actually produced earnings of $0.15, delivering a surprise of +15.38%.Over the last f ...