AI Earnings Predictions for Viavi Solutions Inc. (VIAV)

EX-99.1

2 viavq1fy278-kex991.htm

EX-99.1

Document

Exhibit 99.1

VIAVI Announces First Quarter Fiscal 2027 Results

Chandler, Arizona, November 4, 2026 — VIAVI (NASDAQ: VIAV) today reported results for its fiscal first quarter ended October 3, 2026 with the following highlights.

First Quarter

•Net revenue of $469.3 million, up $170.2 million or 56.9% year-over-year

•GAAP operating margin of 17.4%, up 1,490 bps year-over-year

•Non-GAAP operating margin of 29.0%, up 1,270 bps year-over-year

•GAAP net income of $76.0 million, up $97.4 million or 455.1% year-over-year

•Non-GAAP net income of $125.8 million, up $91.1 million or 262.5% year-over-year

•GAAP diluted earnings per share (EPS) of $0.29, up $0.39 or 390.0% year-over-year

•Non-GAAP diluted EPS of $0.47, up $0.32 or 213.3% year-over-year

“Fiscal 2027 is off to a strong start with first quarter performance coming in above the high end of our guidance. We expect our growth momentum to continue driven by the inherent market demand and expanding opportunities in data center and aerospace and defense end markets,” said Oleg Khaykin, VIAVI's President and Chief Executive Officer.

Financial Overview:

The tables below (in millions, except percentage and per share data) provide comparisons of quarterly results to prior periods, including sequential quarterly and year-over-year changes. A full reconciliation between the GAAP and non-GAAP measures included in the tables is contained in this release under the section titled “Use of Non-GAAP (Adjusted) Financial Measures.”

Fiscal First Quarter Ended October 3, 2026

GAAP Results

Q1Q4Q1Change

FY 2027FY 2026FY 2026Q/QY/Y

Net revenue$469.3 $443.1 $299.1 5.9 %56.9 %

Gross margin61.2 %59.1 %56.5 %210 bps470 bps

Operating margin17.4 %13.8 %2.5 %360 bps1,490 bps

Income from operations$81.7 $61.3 $7.6 33.3 %975.0 %

Net income per share0.29 0.13 (0.10)123.1 %390.0 %

Non-GAAP Results

Q1Q4Q1Change

FY 2027FY 2026FY 2026Q/QY/Y

Gross margin64.4 %62.3 %60.1 %210 bps430 bps

Operating margin29.0 %24.0 %16.3 %500 bps1,270 bps

Income from operations$136.1 $106.4 $48.7 27.9 %179.5 %

Earnings per share 0.47 0.34 0.15 38.2 %213.3 %

Net Revenue by Segment

Q1Q4Q1Change

FY 2027FY 2026FY 2026Q/QY/Y

Network and Service Enablement$376.1 $353.9 $216.0 6.3 %74.1 %

Optical Security and Performance Products93.2 89.2 83.1 4.5 %12.2 %

Total$469.3 $443.1 $299.1 5.9 %56.9 %

1

•Americas, Asia-Pacific and EMEA customers represented 43.9%, 34.7% and 21.4%, respectively, of total net revenue for the fiscal first quarter ended October 3, 2026.

•As of October 3, 2026, the Company held $535.3 million in total cash, short-term investments and short-term restricted cash.

•As of October 3, 2026, the Company had $250.0 million aggregate principal amount of 0.625% Senior Convertible Notes and $400.0 million aggregate principal amount of 3.75% Senior Notes with a total net carrying value of $642.5 million.

•During the fiscal first quarter ended October 3, 2026, the Company generated $104.7 million of cash flows from operations.

Share Repurchase Plan

On November 1, 2026, the Board of Directors authorized a new common stock repurchase program that will allow the Company to repurchase up to $500 million of the Company’s common stock. This authorization is in addition to the $300 million previously authorized by the Board of Directors under the 2022 Repurchase Plan, which has approximately $18.4 million remaining. Under the new repurchase program, the Company may purchase shares of common stock from time to time through a variety of methods, which may include but are not limited to open market purchases, the implementation of a 10b5-1 plan, accelerated stock repurchases, privately negotiated transactions and/or any other available methods in accordance with Securities and Exchange Commission and other applicable legal requirements. The Company is not obligated to repurchase any particular amount of common stock, and the repurchase program will remain in effect until the amount authorized has been fully repurchased or until the Company suspends or terminates the program.

Business Outlook for the Second Quarter of Fiscal 2027

For the second quarter of fiscal 2027 ending January 2, 2027, the Company expects net revenue to be between $505 million to $515 million and non-GAAP EPS to be between $0.50 to $0.52.

With respect to our expectations above, the Company has not reconciled GAAP net income (loss) per share to non-GAAP EPS in this press release because it is unable to provide a meaningful or accurate estimate of certain reconciling items described in the “Use of Non-GAAP (Adjusted) Financial Measures” section below and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of certain items, including certain charges related to restructuring, acquisition, integration and related charges. For the same reasons, the Company is unable to address th

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