Viavi Solutions Inc. Q2 FY2026 earnings call

• Net revenue was $369.3 million, at the high end of guidance, up 23.5% sequentially and 36.4% year-over-year. Operating margin was 19.3%, above guidance. - NSE revenue at $291.5M, Spirent revenue $43M (slightly below expectation). NSE operating margin 15.6% vs 8.7% last year. - OSP revenue $77.8M, above guidance, operating margin 33.4%. - Balance sheet: Cash and short-term investments $772.1M, cash flow from ops $42.5M. - Restructuring plan: ~5% workforce impact, ~$32M charges, ~$30M annual savings, to be completed by Dec 2026.

Net revenue for the quarter was $369.3 million. NSE revenue for the second fiscal quarter was $291.5 million, which is 78.9% of total revenue, with a year-over-year increase of 45.8% due to acquisitions and strong demand from data center and aerospace. NSE gross margin was 64.7% and operating margin was 15.6%. OSP revenue was $77.8 million, 21.1% of total revenue, up 9.7% year-over-year, with gross margin 50.8% and operating margin 33.4%.

• Expect third fiscal quarter revenue up sequentially, NSE revenue higher due to data center and aerospace demand. - Full year revenue range $386M-$400M, NSE revenue $304M-$316M, OSP revenue $82M-$84M. - Operating margin expected 19.7% +/-50bps for Viavi, 15.5% +/-50bps for NSE. - Expect to pay $75M earn-out liability for Inertia Labs in Q3.

• Forward-looking statements subject to risks and uncertainties from SEC filings, actual results may differ from expectations.

Q: Update on data center mix and guidance moving parts.

A: Mix now ~40% service provider, ~45% data center, ~15% aerospace defense. Q3 revenue strong due to data center ecosystem growth.

Q: Restructuring impact?

A: Across multiple functions, not specific product areas, savings to reinvest in growth areas.

Q: Aerospace defense programs?

A: Resilient PNT for autonomous systems, data center timing demand.

Q: Optical data center growth?

A: Lab and production driven, field instruments used by hyperscalers in data centers.

Q: Spirent contribution and organic growth?

A: Volume pushed into Q3 due to timing, data center, aerospace defense offset service provider seasonality.