Viavi Solutions Inc. Q3 FY2026 earnings call

Review of Q3 results: Net revenue above guidance, operating margin and EPS also above. By segment: NSE up due to acquisition and demand, NSC margin up driven by volume and mix, OSP up driven by 3D sensing. Management highlights Q4 expectations: Revenue expected up sequentially for NSC and OSP, with specific revenue ranges for VIAVI, NSE, OSP and operating margin expectation.

Net revenue for Q3 was $406.8 million. NSE revenue was $321.5 million, above guidance range. Spire and product lines revenue $54.2 million. NSC gross margin 65.3%, operating margin 17.2%. OSP revenue $85.3 million, gross margin 50.3%, operating margin 35.3%.

Expect Q4 revenue of VIAVI in range of $427 - $437 million, NSE between $340 - $348 million, OSP $87 - $89 million, operating margin 22.7% +/-50bps.

Forward-looking statements subject to risks and uncertainties causing actual results to differ. Component shortages and supply constraints risks.

Q: Drill into data center momentum.

A: Lab, production, field instruments driven by data center ecosystem, aerospace defense.

Q: Longer-term earning power.

A: NSC operating margin growing, OSP high margin, operating leverage from volume.

Q: Component shortages and supply.

A: No long-term supply agreements yet, focus on early access, manage supply chain.

Q: Drone business performance.

A: Inertial business exceeding forecasts, products for different drones with export approvals