A maker of network testing, monitoring, and optical security gear. Its Network and Service Enablement business builds test and AIOps tools used by telecom, cloud, and enterprise networks, while its Optical Security and Performance Products unit makes color-shifting anti-counterfeiting pigments found on over 100 of the world's currencies and the optical filters that enable 3D sensing in consumer electronics, automotive LiDAR, and aerospace.
10-K · Fiscal year ended Jun 27, 2026 · SEC filing ↗
Viavi revenue rose 40% to $1.52B on acquisitions and data center demand, but GAAP EPS fell to $(0.13) on debt extinguishment losses.
Viavi's story changed decisively this year — the company grew 40% to $1.52 billion, its first year above $1.3 billion since fiscal 2022. The gain came almost entirely from the Spirent HSE and CE acquisition and data center demand, which lifted the NSE 52.3%, while fell to $(0.13) on a $56.7 million and restructuring charges. The company is now a larger, more leveraged business with a of 20.6%, but the GAAP still reflects the cost of getting there.
Key takeaways
rose 40.0% to $1,518.3 million, driven by lab and production and field products for the data center ecosystem, the Spirent HSE and CE acquisition, and aerospace and defense demand, partially offset by lower wireless spend.
NSE grew 52.3% to $1,182.9 million with up 10.6 points to 16.1%, while OSP revenue grew 9.0% to $335.4 million with operating margin flat at 36.6%.
swung to a $30.4 million loss from a $34.8 million profit a year earlier, mainly due to a $56.7 million loss on debt extinguishments and the absence of a $25.0 million prior-year .
Section summaries
Business
Viavi operates NSE and OSP segments providing test, measurement, PNT, and optical technologies for networks, data centers, and anti-counterfeiting.
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NSE provides test, monitoring, assurance, and resilient PNT solutions for data centers, communication networks, military, aerospace, railway, and first responders, with customers including AMD, AT&T, Cisco, Ericsson, Nokia, and Verizon.
OSP leverages optical coating technologies for anti-counterfeiting pigments used on banknotes in over 100 countries, plus 3D sensing filters, aerospace optics, spectrometers, and automotive LiDAR filters.
rose 6.3 points to 20.6% and rose $0.53 to $1.00, driven by higher .
The company completed a public offering of 12.8 million common shares in May 2026, raising net proceeds of approximately $557.7 million to prepay Term Loan B.
A fiscal 2026 restructuring plan targets about 5% of the global workforce and roughly $30.0 million in annualized gross cost savings, with substantial completion expected by end of calendar 2026.
What changed
The Spirent HSE, network security, and CE acquisition flagged in FY2025 closed in October 2025 for $399.3 million and contributed $162.3 million of customer relationships and $134.8 million of developed technology to , with $54.3 million of in Q3 FY2026 alone.
NSE growth accelerated from 10.6% in FY2025 to 52.3% in FY2026, as the 's quarterly growth rate climbed from 35.5% in Q1 to 45.8% in Q2 and 54.4% in Q3 before moderating in Q4.
The $600 million Term Loan B priced in FY2025 was prepaid with proceeds from the May 2026 public offering, and ended the year at $397.1 million, down from $1,221.7 million at Q2 FY2026.
The fair value charges that appeared in Q1 and Q2 FY2026 ($10.9 million and $10.8 million) did not recur in Q3, but restructuring charges of $17.3 million in Q3 and a $3.7 million loss on debt extinguishment kept at $6.4 million for that quarter.
The $30 million in targeted annualized restructuring savings flagged in Q3 FY2026 is now expected to be substantially complete by end of calendar 2026, with the plan affecting about 5% of the global workforce.
What to watch
Whether the $30 million in annualized restructuring savings materializes in over the next two quarters, and whether the 20.6% non-GAAP operating margin holds as the Spirent contribution annualizes.
Whether NSE sustains its growth rate as the Spirent HSE and CE acquisition annualizes and the Inertial Labs comparison becomes more difficult.
Whether the $244.5 million of 2031 Convertible Notes reclassified to short-term debt is converted or repaid, and how that affects cash and share count.
Whether OSP recovers from the 130-basis-point decline caused by unfavorable product mix, and whether anti-counterfeiting demand from SICPA remains stable.
The October 2025 acquisition of certain Spirent Communications businesses expanded Viavi's high-speed Ethernet portfolio to cover layers 0-7 of the OSI protocol stack.
A fiscal 2026 restructuring plan targets about 5% of the global workforce and estimates roughly $30.0 million in annualized gross cost savings, with substantial completion expected by end of calendar 2026.
NSE is typically higher in the second and fourth fiscal quarters, while OSP revenue is seasonally higher in the first and second fiscal quarters due to 3D sensing smartphone demand.
Viavi holds approximately 1,220 U.S. patents and 2,225 foreign patents, with 1,062 patent applications pending worldwide as of June 27, 2026.
Geopolitical tensions, customer concentration, technology shifts, and debt leverage are the dominant risks to VIAVI's business.
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Escalating U.S.-China trade restrictions, including the BIS Affiliates Rule and tariffs, could curtail sales to Huawei and raise costs across VIAVI's supply chain.
Profitability is pressured by pricing competition from Asia-based rivals, adverse product mix shifts, memory chip shortages, and a highly concentrated customer base.
The NSE faces lower demand for legacy hardware as customers move toward virtualized networks and software solutions.
VIAVI's 3.75% Senior Notes due 2029 and 0.625% Senior Convertible Notes due 2031 increase , and conversion of the 2031 Notes could dilute stockholders.
The company's reliance on SICPA for banknote anti-counterfeiting sales creates a single-partner concentration risk in the OSP .
Newly emphasized risks include the BIS Affiliates Rule, Agentic AI exposure, and the G7-U.S. agreement to modify OECD Pillar Two tax rules.
The information set forth under the heading “Legal Proceedings” in “Note 18. Commitments and Contingencies” is under Item 8 of this Annual Report on Form 10-K.
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The information set forth under the heading “Legal Proceedings” in “Note 18. Commitments and Contingencies” is under Item 8 of this Annual Report on Form 10-K.
Fiscal 2026 revenue rose 40% to $1.5B on data center and acquisition growth, but GAAP EPS fell to $(0.13) on debt extinguishment losses.
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Net rose $434.0 million, or 40.0%, to $1,518.3 million, driven by lab and production and field products for the data center ecosystem, the Spirent HSE and CE acquisition, and aerospace and defense demand, partially offset by lower wireless spend.
NSE grew 52.3% to $1,182.9 million with up 10.6 points to 16.1%, while OSP revenue grew 9.0% to $335.4 million with operating margin flat at 36.6%.
improved 160 to 6.9%, but GAAP fell $0.28 to $(0.13), mainly due to a $56.7 million loss on debt extinguishments and the absence of a $25.0 million prior-year release.
rose 630 to 20.6% and rose $0.53 to $1.00, driven by higher .
was $113.9 million; the company used $399.3 million for the Spirent HSE and CE acquisition and raised $557.1 million in net proceeds from a 12.8 million share public offering.
The company expects about $30.0 million in annualized gross cost savings from its Fiscal 2026 restructuring plan, which affects about 5% of the global workforce and should be substantially complete by the end of calendar 2026.
Quantitative and Qualitative Disclosures About Market Risk
Company faces FX risk from intercompany balances and interest-rate/equity risk on its 2029 and 2031 Notes, hedged via short-term forwards.
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Foreign exchange risk arises mainly from foreign-currency-denominated monetary assets and liabilities, primarily short-term intercompany and .
The company uses foreign exchange forward contracts to hedge this FX exposure, with gains and losses recorded in Interest and other income, net.
As of June 27, 2026, notional amounts were $66.2 million for forwards to purchase foreign currencies and $38.9 million for forwards to sell foreign currencies.
The company does not hedge all foreign currency exposures and states there is no assurance its hedging will adequately protect against currency fluctuations.
Short-term investments of $2.0 million as of June 27, 2026 were primarily equity securities tied to the deferred compensation plan, with most other investments maturing in 90 days or less.
The of the 2029 Notes is subject to interest rate risk, while the 2031 Notes are also exposed to market price risk from their ; changes in fair value do not impact financial position, cash flows, or results of operations.
Auditor issued unqualified opinions; FY2026 net loss of $30.4M on revenue of $1,518.3M, up 40% YoY.
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PricewaterhouseCoopers LLP issued unqualified opinions on the consolidated financial statements and as of June 27, 2026.
Total net rose 40% to $1,518.3 million in fiscal 2026, driven by the Network and Service Enablement at $1,182.9 million.
The company reported a net loss of $30.4 million in fiscal 2026, compared with of $34.8 million in fiscal 2025, partly due to a $56.7 million loss on .
The October 16, 2025 acquisition of Spirent's HSE and CE business for $399.3 million added $162.3 million of customer relationships and $134.8 million of developed technology to .
Total assets grew to $2,705.6 million from $1,993.8 million, with rising to $700.7 million and intangibles, net to $377.6 million.
The company completed a public offering of 12.8 million common shares in May 2026, raising net proceeds of approximately $557.7 million to prepay Term Loan B.