Core Insights - Viavi Solutions Inc. (VIAV) reported strong second-quarter fiscal 2026 results, with both revenue and net income exceeding the Zacks Consensus Estimate [1] Financial Performance - The company achieved a 36.4% year-over-year increase in revenues, reaching $369.3 million, driven by strong performance in the Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments [2][6] - The NSE segment generated $291.5 million in revenues, up 45.8% year over year, accounting for 78.9% of total revenues [7] - The OSP segment revenues were $77.8 million, reflecting a 9.7% year-over-year increase [7] - On a GAAP basis, Viavi incurred a net loss of $48.1 million or 21 cents per share, compared to a net income of $9.1 million or 4 cents per share in the prior year [3] - Non-GAAP net income was $51.5 million or 22 cents per share, surpassing the Zacks Consensus Estimate of 19 cents [3] Revenue Breakdown - Net sales from the Americas totaled $170.9 million, up from $116.1 million in the year-ago quarter [9] - Revenues from Asia-Pacific were $108.1 million, a 15.5% increase year over year [9] - Revenues from EMEA increased to $90.3 million from $61.1 million in the prior-year quarter [9] Profitability Metrics - Non-GAAP gross profit was $228.1 million, with a margin of 61.8%, compared to $165.4 million and a margin of 61.1% in the year-ago quarter [10] - Non-GAAP operating income was $71.4 million, up from $40.4 million in the prior-year quarter [10] Cash Flow and Liquidity - As of December 27, 2025, the company had $765.5 million in cash and cash equivalents and $1.22 billion in long-term debt [11] - The company generated $42.5 million in net cash from operating activities, with a free cash flow of $36.9 million [11] Future Outlook - For the third quarter of fiscal 2026, management expects revenues in the range of $386-$400 million, with non-GAAP earnings per share projected between 22 cents and 24 cents [12] - The NSE segment revenues are projected to be between $304 million and $316 million, while the OSP segment is anticipated to generate revenues in the range of $82-$84 million [13]