A maker of microwave and millimeter-wave radios that beam data between cell towers and the wider network, keeping mobile calls and data flowing for telecom providers and utilities, public-safety, and government networks. Born in 2007 from the merger of Stratex Networks and Harris Corporation's microwave division, it was renamed Aviat Networks in 2010. The "Aviat" name sounds like aviation but has nothing to do with planes — it was chosen to reflect wireless connectivity.
Aviat's FY2026 revenue rose 1.2% to $439.7M, but gross margin fell to 31.5% and net income stayed near breakeven at $2.5M.
Aviat's growth stalled in fiscal 2026, with up just 1.2% to $439.7 million and down 0.6 points to 31.5%. was $2.5 million, or $0.19 per diluted share, as a $10.7 million income tax provision and a 15% decline in field services revenue offset cost reductions and a 10% increase in software and license sales. The company enters fiscal 2027 with a $367 million and a clean audit opinion, but the core question of whether margins can recover remains unresolved.
Key takeaways
fell 0.6 points to 31.5% for the year, as a 15% decline in field services and lower service margin (36.3%, down from 40.7%) offset a product margin improvement to 29.5%.
rose 1.2% to $439.7 million, with software and licenses up 10% and equipment up 6%, while field services fell 15%.
rose 81.9% to $19.2 million as R&D spending fell 20.6% to $28.4 million and selling and administrative costs fell 1.1% to $88.5 million on cost management initiatives.
Section summaries
Business
Aviat Networks supplies microwave and wireless access networking products, software, and services to service providers and private network operators.
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Aviat sells to two principal customer types: communications service providers and private network operators such as government, utility, public safety, energy, and broadcast organizations.
The product portfolio spans microwave and millimeter wave systems from 450 MHz to 90 GHz with capacities up to 20 Gbps, plus routers, network management software, and hosted tools.
was $2.5 million, up from $1.3 million in fiscal 2025 but down from $10.8 million in fiscal 2024, as the income tax provision increased to $10.7 million.
rose 137% to $13.6 million from $5.7 million, driven by improved , while turned positive at $6.1 million after a $7.2 million use of cash in fiscal 2025.
Grant Thornton issued an on both the financial statements and internal controls, succeeding Deloitte and resolving the material weaknesses that had produced adverse opinions in the prior two years.
rose to approximately $367 million from $323 million a year earlier, with no single customer exceeding 10% of .
What changed
The material weaknesses in internal control over financial reporting that produced adverse auditor opinions in fiscal 2024 and fiscal 2025 were resolved: Grant Thornton issued an on internal controls for fiscal 2026.
did not stabilize above the 32.1% fiscal 2025 full-year rate as earlier flagged; it fell to 31.5%, with the decline concentrated in services rather than the NEC and 4RF product mix.
recovered from $5.7 million in fiscal 2025 to $13.6 million, though it remains below the $30.5 million generated in fiscal 2024.
Latin America and Asia Pacific fell 18.0% to $119.7 million, reversing the NEC-driven growth that had lifted that region in fiscal 2024 and early fiscal 2025.
R&D spending fell to $28.4 million from $35.8 million, confirming the cost reductions that began in Q3 fiscal 2025 were sustained through the full year.
What to watch
Whether the $367 million converts to in fiscal 2027 at margins above the 31.5% fiscal 2026 rate, or whether the lower-margin mix persists.
Whether field services stabilizes after the 15% decline in fiscal 2026, or whether the contraction in that revenue stream continues.
Whether the two NEC arbitration claims, including the $19.0 million component purchase claim, result in a material liability or settlement.
Whether the Tax Benefit Preservation Plan and protections are triggered by an ownership change, which could limit the company's ability to offset future taxable income.
was split approximately 50% North America and 50% international in fiscal 2026, with no single customer exceeding 10% of total revenue.
was approximately $367 million as of July 3, 2026, up from $323 million a year earlier, and is expected to be substantially delivered during fiscal 2027.
R&D spending was $28.4 million, or 6.5% of , in fiscal 2026, down from $35.8 million in fiscal 2025, with product development teams concentrated in Slovenia, New Zealand, and a new center in Chennai, India.
Manufacturing uses an outsourced model with contract manufacturing partners in Asia and the United States, and the company had 900 employees as of July 3, 2026.
Aviat's risk factors center on demand volatility, supply-chain and technology shifts, and legal/regulatory exposure.
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Long sales cycles of 12–24 months and late-quarter large orders make timing volatile and hard to forecast.
Competing technologies such as fiber, LEO satellite networks, and free-space optics could reduce demand for Aviat's microwave and millimeter-wave transport products.
AI/ML use creates operational, competitive, legal, and reputational risks, including flawed outputs, IP claims, and more sophisticated cyberattacks.
Sole- or limited-source components, including Taiwan-concentrated semiconductors and single-source MMICs, create supply disruption risk.
International sales were 50% of fiscal 2026 , exposing results to tariffs, currency swings, geopolitical conflict, and emerging-market customer credit risk.
The Tax Benefit Preservation Plan and Delaware anti-takeover provisions may deter acquisitions, while NOL carryforwards could be limited by an ownership change.
The Company leases office space, assembly facilities, repair and service centers, and warehouses in multiple locations in the United States and internationally. Aviat’s corporate headquarters is in Austin, Texas and most of its locations based in the United States are in Texas.…
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The Company leases office space, assembly facilities, repair and service centers, and warehouses in multiple locations in the United States and internationally. Aviat’s corporate headquarters is in Austin, Texas and most of its locations based in the United States are in Texas. Internationally, the Company leases facilities throughout Europe, North America, Africa and Asia. Refer to Note 4. Leases and Note 5. Balance Sheet Components of the Notes to the consolidated financial statements in this Annual Report on Form 10-K for further information.
For a discussion of legal proceedings as of July 3, 2026, refer to “Legal Proceedings” and “Contingent Liabilities” under Note 13. Commitments and Contingencies of the Notes to the consolidated financial statements in this Annual Report on Form 10-K.
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For a discussion of legal proceedings as of July 3, 2026, refer to “Legal Proceedings” and “Contingent Liabilities” under Note 13. Commitments and Contingencies of the Notes to the consolidated financial statements in this Annual Report on Form 10-K.
Fiscal 2026 revenue rose 1.2% to $439.7M, but gross margin fell to 31.5% on lower service revenue.
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Total increased 1.2% to $439.7 million, driven by 10% growth in software & licenses and 6% growth in equipment sales, partially offset by a 15% decline in field services.
North America rose 6.0% to $220.0 million, Africa and the Middle East rose 17.2% to $58.0 million, and Europe rose 32.6% to $42.0 million, while Latin America and Asia Pacific fell 18.0% to $119.7 million.
decreased $1.1 million to $138.3 million, with gross margin as a percentage of down 0.6 points to 31.5%, as product margin improved to 29.5% but service margin fell to 36.3%.
Research and development expenses fell 20.6% to $28.4 million and selling and administrative expenses fell 1.1% to $88.5 million, both reflecting cost management initiatives.
Net cash provided by operating activities rose to $13.6 million from $5.7 million, driven by improved , while available liquidity included $72.8 million in cash and $84.2 million of available credit under the .
The Company expects existing cash, availability, shelf registration availability, and future customer collections to fund anticipated cash requirements for at least the next 12 months and beyond.
Quantitative and Qualitative Disclosures About Market Risk
In the normal course of doing business, the Company is exposed to the risks associated with foreign currency exchange rates and changes in interest rates. The Company has established policies and procedures governing the use of financial instruments to manage its exposure to suc…
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In the normal course of doing business, the Company is exposed to the risks associated with foreign currency exchange rates and changes in interest rates. The Company has established policies and procedures governing the use of financial instruments to manage its exposure to such risks. For a discussion of such policies and procedures and the related risks, see “Financial Risk Management” in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which is incorporated by reference into this Item 7A.
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Audited FY2026 financials show net income of $2.5M on $439.7M revenue, with clean audit opinions and a new auditor.
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Grant Thornton issued an on the July 3, 2026 financials and internal controls, succeeding Deloitte as auditor; Deloitte's prior-year opinion covered fiscal 2024-2025.
Total rose to $439.7M from $434.6M, but fell to $2.5M from $10.8M in fiscal 2024 as the income tax provision increased to $10.7M.
The was recognition for long-term service contracts, where estimated costs to complete require significant management judgment.
Total debt increased to $97.0M, with $87.6M outstanding on the Term Loan and $10.0M on the under the amended Credit Facility.
NEC filed two arbitration requests in 2025 alleging breach of contract tied to the 2023 NEC Transaction, including a $19.0M component purchase claim; the Company denied the allegations and asserted counterclaims.
The Company operates as one reportable , with the United States generating 47.8% of fiscal 2026 .