Chandler, Arizona, November 4, 2026 / PRNewswire / — VIAVI ( NASDAQ : VIAV ) Today, we announced the financial results for the first quarter of fiscal year 2027, as of October 3, 2026. The main highlights are as follows.

First quarter

• Net revenue was $469.3 million, an increase of $170.2 million year-on-year, representing a growth rate of 56.9%.
• GAAP The operating profit margin is 17.4%, up 1,490 basis points year-on-year.
• The non-GAAP operating profit margin was 29.0%, up 1,270 basis points year-on-year.
• GAAP reported a net profit of $76 million, a year-on-year increase of $97.4 million, representing a growth rate of 455.1%.
• Non-GAAP net profit was 125.8 million US dollars, a year-on-year increase of 91.1 million US dollars, representing a growth rate of 262.5%.
• Earnings per share diluted (EPS) were $0.29, representing a year-over-year increase of $0.39, or a growth rate of 390.0%.
• Non-GAAP diluted earnings per share were $0.47, a year-on-year increase of $0.32, representing a growth of 213.3%.

VIAVI, President and CEO, Oleg Khaykin stated: "The start of the fiscal year 2027 has been strong, with the first quarter's performance exceeding the upper end of our guidance range. We expect that this growth momentum will continue, driven by expanding internal demand and opportunities in the data center, aerospace, and defense markets."

Financial Overview:

The company stated that the table below (in millions of US dollars, except for percentages and per-share data) compares quarterly performance with the previous period, including both month-over-month and year-over-year changes. The complete adjustments between the indicators marked with GAAP and those not marked with GAAP in the table are provided in the “Use of Non-GAAP (Adjusted) Financial Indicators” section of this press release.

For the first quarter of the fiscal year ending October 3, 2026

• For the first quarter of the fiscal year ending October 3, 2026, customers from the Americas, Asia-Pacific, and EMEA accounted for 43.9%, 34.7%, and 21.4% of total net revenue, respectively.
• As of October 3, 2026, the total amount of cash, short-term investments, and short-term restricted cash held by the company amounted to 535.3 million US dollars.
• As of October 3, 2026, the company held senior convertible notes with a total principal amount of $250 million and a coupon rate of 0.625%, as well as senior notes with a total principal amount of $400 million and a coupon rate of 3.75%, resulting in a combined net book value of $642.5 million.
• In the first quarter of the fiscal year ending October 3, 2026, the company generated cash flows from operating activities amounting to $104.7 million.

Stock Repurchase Plan

On November 1, 2026, the board of directors approved a new common stock repurchase plan that allows the company to repurchase up to $500 million in its own common stock. This authorization is in addition to the $300 million previously approved by the board under the 2022 repurchase plan; as of now, there is still about $18.4 million remaining from that old plan.

Under the new repurchase plan, the company may repurchase common shares from time to time through various methods, including but not limited to purchasing in the public market, implementing the 10b5-1 plan, accelerating share repurchases, private negotiated transactions, and/or any other available methods that comply with the requirements of the U.S. Securities and Exchange Commission and other applicable laws. The company is not obligated to repurchase a specific quantity of common shares. This repurchase plan will remain in effect until the authorized amount is fully utilized, or until the company suspends or terminates the plan.

Business Outlook for the Second Quarter of Fiscal Year 2027

For the second quarter of fiscal year 2027, as of January 2, 2027, the company expects net revenue to be between $505 million and $515 million, and non-GAAP earnings per share to be between $0.50 and $0.52.

Regarding the aforementioned expectations, the company has not made any adjustments in this press release to the net profit (loss) per share of GAAP versus the earnings per share of non-GAAP, as the company is unable to make meaningful or accurate estimates regarding certain adjustment items mentioned in the 'Use of Non-GAAP (Adjusted) Financial Indicators' section. Moreover, due to the difficulties in predicting the timing and/or amount of certain items (including expenses related to restructuring, acquisitions, integration, and related costs), such information cannot be obtained without making unreasonable efforts. For the same reasons, the company is also unable to assess the potential significance of these missing pieces of information, which could have a potentially unpredictable and significant impact on future GAAP financial results. Furthermore, the company believes that such adjustments might imply a level of precision that could instead confuse or mislead investors.

Teleconference

The company will hold a webcast at 1:30 p.m. Pacific Time on November 4, 2026, to discuss the aforementioned financial results and other related matters. The replay of the webcast will also be archived on the company's website at the address https :// investor.viavisolutions.com. In conjunction with this financial report press release, the company will publish supplementary slides outlining its latest financial performance in the “Quarterly Results” section at https :// investor.viavisolutions.com. This press release will also serve as part of the Form 8-K filing submitted to the U.S. Securities and Exchange Commission and can be viewed at www.sec.gov.

About VIAVI Solutions

VIAVI ( NASDAQ : VIAV ) is a global leader in the fields of testing and measurement, as well as optical technology. The company's solutions for testing and measurement, as well as high-resilience positioning, navigation, and timekeeping, provide support and security for critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway, and emergency response communications. In addition, the company also develops and advances technologies for mass optical applications, with end markets covering anti-counterfeiting, consumer electronics, aerospace, industry, and automotive.

For more information, please visit: www.viavisolutions.com. You can also follow the company updates on VIAVI Perspectives, LinkedIn, and YouTube.

Forward-looking Statements

This press release contains forward-looking statements as defined by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include any expectations, projections, or guidance regarding future financial performance, such as future revenue, gross margin, operating expenses, operating profit margin, earnings targets, cash flow, and other financial indicators, as well as the impact and duration of certain trends, market positions, and market conditions (including market stability and recovery).

These forward-looking statements involve risks and uncertainties, which may lead to significant differences between actual results and forecasts. The company specifically notes that it remains difficult to predict future financial performance, for reasons including but not limited to:

(a) There is a persistent issue of limited overall visibility for multiple product lines of the company;(b) Fluctuations in the product portfolio across quarters, and the company's product portfolio having a relatively wide gross margin range, may have a significant impact on profitability indicators;(c) Integration of industry and customer base;(d) Competitive pressure;(e) Unexpected changes or slowdowns in current and new product, technology, and service demands; delays in the launch of new industry platforms or unexpected events; changes brought about by evolving technologies such as 3D sensing; and customers delaying purchases due to macroeconomic conditions, tightened spending, or the process of evaluating and transitioning to new technologies and/or new architectures. All these factors limit the visibility of short-term demand and may have a negative impact on potential revenue.(f) The average selling price of each business unit of the company continues to decline;(g) Obvious seasonality, as well as a high proportion of orders placed and shipped within the same season;(h) Various product and manufacturing transfer plans, site integration, product discontinuation, reorganization, and layoff plans, including the number of employees affected by the reorganization plans, the estimated costs to be confirmed by the company, the timing of related payments and expenses, as well as the expected cost savings associated with such plans;(i) Challenges in the execution of business strategy;(j) Financial forecasts and growth strategies, including forecasts and strategies related to ongoing customer demand and capital expenditures in the data center ecosystem, sustained growth in the aerospace and defense sectors, the multi-year update cycles of service providers, as well as the long-term recovery of the wireless business;(k) Expectations regarding the profitability, synergies, revenues, and other matters related to the acquisition of certain business units involved in high-speed Ethernet, network security, and channel simulation testing services for Spirent Communications and plc.(l) The challenge of integrating acquired businesses and realizing all expected revenues and savings;(m) Supply chain and material constraints, including limitations on components, as well as the ability of suppliers and contract manufacturers to meet the production and delivery requirements under the company's forecasted needs;(n) Climate conditions and natural disasters in the regions where the company operates may pose potential disruptions or delays to manufacturing and operations, such as wildfires, droughts, and related water shortages in Arizona, as well as wildfires, power outages, and interruptions in northern California;(o) The continuous and uncertain impact of geopolitical tensions on the supply chain, such as the ongoing Russia-Ukraine conflict, unstable situations in the Middle East, evolving global trade and tariff negotiations and an uncertain tariff environment, sanctions and other trade measures implemented by domestic and foreign governments, deteriorating and escalating relations with foreign governments (including China), the possibility of an escalation of a 'trade war', cyberattacks, and retaliatory measures;The impact of outbreaks of infectious diseases, epidemics, and pandemics on a company's financial results, revenue, customer needs, business operations, and manufacturing; as well as on the business operations of customers, contract manufacturers, and suppliers; and(q) The inherent uncertainties of the global market, including inflationary pressures, economic recessions, stock price and market fluctuations, tightening monetary policies and changes in liquidity, as well as the impact of such market conditions on the demand for the company's products.

These forward-looking statements involve risks and uncertainties that may lead to significant differences between actual results and forecasts. For more information regarding the company's business-related risks and uncertainties, please refer to the "Management's Discussion and Analysis of Financial Conditions and Operating Results" and the "Risk Factors" sections in the documents submitted by the company to the U.S. Securities and Exchange Commission, including but not limited to its Form 10-K annual reports and Form 10-Q quarterly reports.

The forward-looking statements in this press release are only valid as of the date of issuance, and the company assumes no obligation to update these statements. The company has not yet submitted its Form 10-Q report for the quarter ending October 3, 2026. Therefore, all financial results mentioned in this earnings news release should be considered preliminary and may change before the company submits its Form 10-Q report due to the identification of necessary adjustments or changes in accounting estimates.

Contact Information

Investors:

Vibhuti Nayar408-404-6305vibhuti.nayar @ viavisolutions.com

Media:

Amit Malhotra202-341-8624amit.malhotra @ viavisolutions.com

Unless otherwise specified, the following financial tables are all presented in accordance with GAAP.

— Select preliminary financial data —

Use of financial indicators (after adjustment), except for GAAP

The company provides financial indicators such as non-GAAP operating profit, non-GAAP operating margin, non-GAAP net profit, and non-GAAP earnings per share as supplementary information regarding the company's operational performance. The company believes that providing this additional information helps investors understand the company's performance from the management's perspective, to assess the company's core operational performance and expenses more clearly and consistently, and to evaluate the effectiveness of the methods used by management to measure such performance. The company uses these indicators disclosed in this press release to assess the company's historical and future financial performance, as well as its performance relative to competitors. Specifically, management uses these items to gain a deeper understanding of the company's core operational performance, which is considered to represent the company's performance during normal, ongoing, and customary business operations. Therefore, management has excluded certain items from the core operational performance, such as certain purchase price accounting adjustments, amortization of intangible assets related to acquisitions, amortization of inventory value increases related to acquisitions, equity incentives, legal settlements, reorganizations, changes in the fair value of contingent consideration liabilities, certain investment and acquisition-related expenses, and other activities, as well as income tax expenses or gains that management believes do not reflect such normal, ongoing, and core business activities. A summary of the non-GAAP adjustment items is as follows.

Operating costs, research and development costs, as well as selling, general, and administrative costs: The gross margin and operating expenses under the company's GAAP definition may include: (i) additional depreciation and amortization due to changes in estimated useful lives and impairment of certain fixed assets, plant equipment, and intangible assets; ( ii ) severance costs, benefits, and re-employment assistance related to specific and time-bound restructuring plans; ( iii ) costs of facilities that are not required for ongoing operations, as well as costs associated with moving certain equipment out of these facilities and/or those of contract manufacturers; ( iv ) stock-based incentives, including related employer payroll taxes; (v) amortization expenses for intangible assets related to acquisitions; ( vi ) amortization expenses for inventory appreciation related to acquisitions; ( vii ) changes in the fair value of contingent consideration liabilities; ( viii ) transaction and integration costs related to the acquired entity; ( ix ) significant legal settlements and other contingencies; and (x) other expenses unrelated to core operational performance, mainly including other costs and contingencies that are not related to current and future operations, such as implementing simplified automation processes, site integrations, and other transformation initiatives. The company excludes these items when calculating non- GAAP operating profit margins, non- GAAP net profits, and non- GAAP earnings per share.

Non-cash interest expenses and other expenses: When calculating non-GAAP net profit and non-GAAP earnings per share, the company excludes certain non-cash interest and other expenses, including losses on debt settlement, amortization of debt discount, as well as other non-cash items that management believes do not reflect normal, ongoing, and core operating activities.

Income tax expenses or gains: When calculating non-GAAP net profit and non-GAAP earnings per share, the company excludes certain non-cash tax expenses or gains, such as: (i) the utilization of net operating losses (NOL) when the valuation provision is no longer in effect; (ii) tax distribution gains during the (ii) period; and (iii) the tax impact of intangible asset amortization that cannot be deducted before tax.

Non-GAAP financial indicators do not conform to Generally Accepted Accounting Principles (GAAP) in the United States, nor are they superior to or can they replace GAAP. The GAAP indicator that is most directly comparable to non-GAAP operating profit is operating profit; the GAAP indicator that is most directly comparable to non-GAAP operating margin is operating margin; the GAAP indicator that is most directly comparable to non-GAAP net profit is net profit; and the GAAP indicator that is most directly comparable to non-GAAP earnings per share is earnings per share.