Aviat Networks Announces Fiscal 2026 Third Quarter and Nine Month Financial Results
Rhea-AI Summary
Aviat Networks (NASDAQ: AVNW) reported fiscal 2026 Q3 results for the quarter ended March 27, 2026. Q3 revenues were $100.0M; GAAP operating income $0.9M; GAAP net loss $(2.1)M or $(0.16) per diluted share. Non‑GAAP operating income was $3.0M and adjusted EBITDA $4.4M. Cash was $78.1M and net debt $26.1M. The company updated full‑year guidance to revenue $428–$440M and adjusted EBITDA $35–$40M.
AI-generated analysis. Not financial advice.
Positive
- Full‑year guidance narrowed: Revenue $428–$440M
- Full‑year Adjusted EBITDA guidance increased to $35–$40M
- Cash balance of $78.1M as of March 27, 2026
- Nine‑month GAAP operating income improved to $13.4M
Negative
- Q3 revenue decline of 11.2% to $100.0M year‑over‑year
- GAAP gross margin fell to 29.3% (down 560 bps YoY)
- Q3 GAAP net loss of $2.1M and diluted loss per share $0.16
News Market Reaction – AVNW
On the day this news was published, AVNW declined 33.35%, reflecting a significant negative market reaction. Argus tracked a trough of -36.9% from its starting point during tracking. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $146M from the company's valuation, bringing the market cap to $292.11M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Scanner data flagged AVNW moving down with only one peer (BKTI) also down. Broader peers like FEIM, AUDC, and ADTN showed mixed to positive moves, indicating today’s move is more stock-specific than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Q2 2026 earnings | Positive | +14.0% | Q2 revenue $111.5M, net income $5.7M, strong Adjusted EBITDA and guidance. |
| Sep 10 | FY25 results | Positive | +12.7% | Fifth year of revenue growth, record Q4 Adjusted EBITDA, FY26 growth outlook. |
| Aug 27 | Prelim Q4 FY25 | Positive | +1.3% | Preliminary Q4 FY25 results with higher GAAP net income and Adjusted EBITDA. |
| May 06 | Q3 2025 earnings | Positive | +4.6% | Q3 2025 revenue growth, record Adjusted EBITDA and solid margins. |
| Feb 04 | Q2 2025 earnings | Positive | +28.2% | Q2 2025 revenue up 26.2% with record Adjusted EBITDA and guidance maintained. |
Earnings releases have typically driven positive price reactions, suggesting the stock has historically been rewarded for financial updates.
Over the last few earnings cycles, Aviat reported steady revenue growth, record Adjusted EBITDA, and maintained or reiterated guidance, with shares often reacting positively (moves up to 28.22%). Prior updates projected fiscal revenue of $440–$460 million and Adjusted EBITDA of $45–$55 million. Today’s Q3 FY26 release contrasts with that trend: quarterly revenue fell to $100.0 million from $112.6 million and full-year guidance is now $428–$440 million revenue and $35–$40 million Adjusted EBITDA.
Historical Comparison
Past earnings headlines saw average moves of 12.17%, typically on strong growth and record EBITDA. This Q3 FY26 update pairs revenue decline and lower guidance with still-solid year-to-date profitability, breaking that prior growth-focused pattern.
Earnings since early FY2025 highlighted multi-year revenue growth, record Adjusted EBITDA, and FY26 targets of $440–$460M revenue and $45–$55M Adjusted EBITDA. The latest Q3 FY26 results show quarterly revenue down year-over-year and full-year guidance reset to $428–$440M revenue and $35–$40M Adjusted EBITDA, marking a shift from prior acceleration to a more constrained outlook despite improved year-to-date operating income.
Market Pulse Summary
The stock dropped -33.4% in the session following this news. A negative reaction despite mixed fundamentals fits a shift from Aviat’s prior pattern of positive responses to earnings, which averaged 12.17% moves on strong growth updates. The Q3 FY26 report shows revenue down to $100.0M, gross margin compression from the mid-30s to about 29%, and a cut in full-year guidance to $428–$440M revenue and $35–$40M Adjusted EBITDA. These changes, combined with recent insider sales, could reinforce concerns about near-term growth and profitability.
Key Terms
adjusted ebitda financial
non-gaap financial
book-to-bill ratio financial
basis points financial
AI-generated analysis. Not financial advice.
Total Q3 QTD Revenues of
Q3 QTD Operating Income of
Q3 QTD Net Earnings of
Q3 QTD Diluted Earnings per Share of
Third Quarter Highlights
- Recorded fiscal 2026 year-to-date revenue growth for the first nine months in
North America of$2.1 million 1.4% compared to the same nine-month period of fiscal 2025 - Increased year-to-date GAAP operating income to
$13.4 million $1.7 million - Reduced quarterly GAAP operating expenses by
$1.7 million $0.8 million - Maintained a trailing-twelve month book-to-bill ratio greater than 1.0
Third Quarter QTD Financial Highlights
- Total Revenues:
$100.0 million - GAAP Results: Gross Margin
29.3% ; Operating Expenses$28.3 million $0.9 million $2.1 million $0.16 - Non-GAAP Results: Adjusted EBITDA
$4.4 million 29.4% ; Operating Expenses$26.4 million $3.0 million $0.7 million $0.06 - Cash and cash equivalents:
$78.1 million - Net debt:
$26.1 million
Fiscal 2026 Third Quarter and Nine Months Ended March 27, 2026
Revenues
The Company reported total revenues of
For the nine months ended March 27, 2026, revenue decreased by
Gross Margins
In the fiscal 2026 third quarter, the Company reported GAAP gross margin of
For the nine months ended March 27, 2026, the Company reported GAAP gross margin of
Operating Expenses
The Company reported GAAP total operating expenses of
For the nine months ended March 27, 2026, the Company reported total operating expenses of
Operating Income
The Company reported GAAP operating income of
For the nine months ended March 27, 2026, the Company reported a GAAP operating income of
Net Income / Net Income Per Share
The Company reported GAAP net loss of
The Company reported GAAP net income of
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA") for the fiscal 2026 third quarter was
For the nine months ended March 27, 2026, the Company reported Adjusted EBITDA of
Balance Sheet Highlights
The Company reported
Fiscal 2026 Full Year Outlook
The Company is updating its fiscal 2026 full year guidance to:
- Full year Revenue between
$428 $440 million - Full year Adjusted EBITDA between
$35.0 $40.0 million
Conference Call Details
Aviat Networks will host a conference call at 5:00 p.m. Eastern Time (ET) today, May 4, 2026, to discuss its financial and operational results for the fiscal 2026 third quarter ended March 27, 2026. Participating on the call will be Peter Smith, President and Chief Executive Officer; Andy Schmidt, Senior Vice President and Chief Financial Officer; Jonanna Mikulenka, Vice President and Chief Accounting Officer; and Andrew Fredrickson, Vice President, Corporate Finance. Following management's remarks, there will be a question and answer period.
Interested parties may access the conference call live via the webcast through Aviat Network's Investor Relations website at investors.aviatnetworks.com/events-and-presentations/events, or may participate via telephone by registering using this online form. Once registered, telephone participants will receive the dial-in number along with a unique PIN number that must be used to access the call. A replay of the conference call webcast will be available after the call on the Company's investor relations website.
About Aviat Networks
Aviat Networks, Inc. is the leading expert in wireless transport and access solutions and works to provide dependable products, services and support to its customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat with their critical applications. Coupled with a long history of microwave innovations, Aviat provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 70 years, the experts at Aviat have delivered high performance products, simplified operations, and the best overall customer experience. Aviat is headquartered in
Forward-Looking Statements
The information contained in this Current Report on Form 8-K includes forward-looking statements within the meaning of the safe harbor provisions of the
Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the disruption the 4RF and NEC transactions may cause to customers, vendors, business partners and our ongoing business; our ability to integrate the operations of the acquired 4RF and NEC businesses with our existing operations and fully realize the expected synergies of the 4RF and NEC transactions on the expected timeline; disruptions relating to the ongoing conflict between
For more information regarding the risks and uncertainties for Aviat's business, see "Risk Factors" in Aviat's Form 10-K for the fiscal year ended June 27, 2025 filed with the
Investor Relations:
Andrew Fredrickson
Email: investorinfo@aviatnet.com
Table 1 AVIAT NETWORKS, INC. Fiscal Year 2026 Third Quarter Summary CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||
Three Months Ended | Nine Months Ended | ||||||
(In thousands, except per share amounts) | March 27, | March 28, | March 27, | March 28, | |||
Revenues: | |||||||
Product sales | $ 68,405 | $ 76,824 | $ 224,699 | $ 220,252 | |||
Services | 31,598 | 35,816 | 94,096 | 99,014 | |||
Total revenues | 100,003 | 112,640 | 318,795 | 319,266 | |||
Cost of revenues: | |||||||
Product sales | 51,009 | 51,370 | 158,155 | 158,540 | |||
Services | 19,711 | 21,974 | 59,593 | 60,756 | |||
Total cost of revenues | 70,720 | 73,344 | 217,748 | 219,296 | |||
Gross profit | 29,283 | 39,296 | 101,047 | 99,970 | |||
Operating expenses: | |||||||
Research and development | 7,656 | 7,704 | 21,163 | 28,334 | |||
Selling and administrative | 20,365 | 22,121 | 66,125 | 68,348 | |||
Restructuring charges | 323 | 177 | 344 | 1,592 | |||
Total operating expenses | 28,344 | 30,002 | 87,632 | 98,274 | |||
Operating income | 939 | 9,294 | 13,415 | 1,696 | |||
Interest expense, net | 1,848 | 1,557 | 5,468 | 4,252 | |||
Other expense (income), net | 1,400 | 3,068 | (371) | 4,047 | |||
(Loss) income before income taxes | (2,309) | 4,669 | 8,318 | (6,603) | |||
(Benefit from) provision for income taxes | (244) | 1,141 | 4,503 | (2,747) | |||
Net (loss) income | $ (2,065) | $ 3,528 | $ 3,815 | $ (3,856) | |||
Net (loss) income per share of common stock outstanding: | |||||||
Basic | $ (0.16) | $ 0.28 | $ 0.30 | $ (0.30) | |||
Diluted | $ (0.16) | $ 0.27 | $ 0.29 | $ (0.30) | |||
Weighted-average shares outstanding: | |||||||
Basic | 12,918 | 12,689 | 12,844 | 12,672 | |||
Diluted | 12,918 | 12,838 | 13,030 | 12,672 | |||
Table 2 AVIAT NETWORKS, INC. Fiscal Year 2026 Third Quarter Summary CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | March 27, | June 27, | |
(Unaudited) | |||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 78,129 | $ 59,690 | |
Accounts receivable, net | 187,624 | 180,321 | |
Unbilled receivables | 85,260 | 105,870 | |
Inventories | 72,609 | 83,979 | |
Other current assets | 26,740 | 33,715 | |
Total current assets | 450,362 | 463,575 | |
Property, plant and equipment, net | 18,990 | 17,453 | |
Goodwill | 19,473 | 19,655 | |
Intangible assets, net | 24,395 | 26,897 | |
Deferred income taxes | 86,977 | 88,149 | |
Right-of-use assets | 2,214 | 3,113 | |
Other assets | 14,134 | 14,454 | |
Total long-term assets | 166,183 | 169,721 | |
Total assets | $ 616,545 | $ 633,296 | |
LIABILITIES AND EQUITY | |||
Current Liabilities: | |||
Accounts payable | $ 112,063 | $ 148,093 | |
Accrued expenses | 40,082 | 38,897 | |
Short-term lease liabilities | 547 | 1,090 | |
Advance payments and unearned revenue | 67,845 | 73,735 | |
Other current liabilities | 160 | 1,757 | |
Current portion of long-term debt | 5,595 | 18,624 | |
Total current liabilities | 226,292 | 282,196 | |
Long-term debt | 98,668 | 68,966 | |
Unearned revenue | 9,724 | 8,063 | |
Long-term operating lease liabilities | 1,858 | 2,241 | |
Other long-term liabilities | 328 | 430 | |
Reserve for uncertain tax positions | 3,724 | 3,242 | |
Deferred income taxes | 4,175 | 4,975 | |
Total liabilities | 344,769 | 370,113 | |
Commitments and contingencies | |||
Stockholder's equity: | |||
Preferred stock | — | — | |
Common stock | 129 | 127 | |
Treasury stock | (7,576) | (7,076) | |
Additional paid-in-capital | 870,340 | 866,119 | |
Accumulated deficit | (573,357) | (577,172) | |
Accumulated other comprehensive loss | (17,760) | (18,815) | |
Total stockholders' equity | 271,776 | 263,183 | |
Total liabilities and stockholders' equity | $ 616,545 | $ 633,296 | |
AVIAT NETWORKS, INC. |
To supplement the consolidated financial statements presented in accordance with accounting principles generally accepted in |
1We have not reconciled Adjusted EBITDA guidance to its corresponding GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to merger and acquisition costs and share-based compensation. In particular, share-based compensation expense is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA are not available without unreasonable effort. |
Table 3 | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
March 27, | % of Revenue | March 28, | % of Revenue | March 27, | % of Revenue | March 28, | % of Revenue | ||||||||
(In thousands, except percentages and per share amounts) | |||||||||||||||
GAAP gross margin | $ 29,283 | 29.3 % | $ 39,296 | 34.9 % | $ 101,047 | 31.7 % | $ 99,970 | 31.3 % | |||||||
Share-based compensation | 37 | (1) | 105 | 214 | |||||||||||
Merger and acquisition and other expenses | 69 | 995 | 1,247 | 2,295 | |||||||||||
Non-GAAP gross margin | 29,389 | 29.4 % | 40,290 | 35.8 % | 102,399 | 32.1 % | 102,479 | 32.1 % | |||||||
GAAP research and development expenses | $ 7,656 | 7.7 % | $ 7,704 | 6.8 % | $ 21,163 | 6.6 % | $ 28,334 | 8.9 % | |||||||
Share-based compensation | (35) | (149) | (98) | (456) | |||||||||||
Non-GAAP research and development expenses | 7,621 | 7.6 % | 7,555 | 6.7 % | 21,065 | 6.6 % | 27,878 | 8.7 % | |||||||
GAAP selling and administrative expenses | $ 20,365 | 20.4 % | $ 22,121 | 19.6 % | $ 66,125 | 20.7 % | $ 68,348 | 21.4 % | |||||||
Share-based compensation | (1,508) | (1,840) | (4,280) | (4,956) | |||||||||||
Merger and acquisition and other expenses | (70) | (595) | (1,057) | (4,890) | |||||||||||
Non-GAAP selling and administrative expenses | 18,787 | 18.8 % | 19,686 | 17.5 % | 60,788 | 19.1 % | 58,502 | 18.3 % | |||||||
GAAP operating expense | $ 28,344 | 28.3 % | $ 30,002 | 26.6 % | $ 87,632 | 27.5 % | $ 98,274 | 30.8 % | |||||||
Share-based compensation | (1,543) | (1,989) | (4,378) | (5,412) | |||||||||||
Merger and acquisition and other expenses | (70) | (595) | (1,057) | (4,890) | |||||||||||
Restructuring charges | (323) | (177) | (344) | (1,592) | |||||||||||
Non-GAAP operating expense | 26,408 | 26.4 % | 27,241 | 24.2 % | 81,853 | 25.7 % | 86,380 | 27.1 % | |||||||
GAAP operating income | $ 939 | 0.9 % | $ 9,294 | 8.3 % | $ 13,415 | 4.2 % | $ 1,696 | 0.5 % | |||||||
Share-based compensation | 1,580 | 1,988 | 4,483 | 5,626 | |||||||||||
Merger and acquisition and other expenses | 139 | 1,590 | 2,304 | 7,185 | |||||||||||
Restructuring charges | 323 | 177 | 344 | 1,592 | |||||||||||
Non-GAAP operating income | 2,981 | 3.0 % | 13,049 | 11.6 % | 20,546 | 6.4 % | 16,099 | 5.0 % | |||||||
GAAP income tax (benefit) provision | $ (244) | (0.2) % | $ 1,141 | 1.0 % | $ 4,503 | 1.4 % | $ (2,747) | (0.9) % | |||||||
Adjustment to reflect pro forma tax rate | 644 | (941) | (2,703) | 3,947 | |||||||||||
Non-GAAP income tax provision | 400 | 0.4 % | 200 | 0.2 % | 1,800 | 0.6 % | 1,200 | 0.4 % | |||||||
GAAP net (loss) income | $ (2,065) | (2.1) % | $ 3,528 | 3.1 % | $ 3,815 | 1.2 % | $ (3,856) | (1.2) % | |||||||
Share-based compensation | 1,580 | 1,988 | 4,483 | 5,626 | |||||||||||
Merger and acquisition and other expenses | 139 | 1,590 | 2,304 | 7,185 | |||||||||||
Restructuring charges | 323 | 177 | 344 | 1,592 | |||||||||||
Other expense (income), net | 1,400 | 3,068 | (371) | 4,047 | |||||||||||
Adjustment to reflect pro forma tax rate | (644) | 941 | 2,703 | (3,947) | |||||||||||
Non-GAAP net income | $ 733 | 0.7 % | $ 11,292 | 10.0 % | $ 13,278 | 4.2 % | $ 10,647 | 3.3 % | |||||||
Diluted net (loss) income per share: | |||||||||||||||
GAAP | $ (0.16) | $ 0.27 | $ 0.29 | $ (0.30) | |||||||||||
Non-GAAP | $ 0.06 | $ 0.88 | $ 1.02 | $ 0.83 | |||||||||||
Shares used in computing diluted net (loss) | |||||||||||||||
GAAP | 12,918 | 12,838 | 13,030 | 12,672 | |||||||||||
Non-GAAP | 13,074 | 12,838 | 13,030 | 12,818 | |||||||||||
Adjusted EBITDA: | |||||||||||||||
GAAP net (loss) income | $ (2,065) | (2.1) % | $ 3,528 | 3.1 % | $ 3,815 | 1.2 % | $ (3,856) | (1.2) % | |||||||
Depreciation and amortization of property, | 1,426 | 1,830 | 4,247 | 5,935 | |||||||||||
Interest expense, net | 1,848 | 1,557 | 5,468 | 4,252 | |||||||||||
Other expense (income), net | 1,400 | 3,068 | (371) | 4,047 | |||||||||||
Share-based compensation | 1,580 | 1,988 | 4,483 | 5,626 | |||||||||||
Merger and acquisition and other expenses | 139 | 1,590 | 2,304 | 7,185 | |||||||||||
Restructuring charges | 323 | 177 | 344 | 1,592 | |||||||||||
(Benefit from) provision for income taxes | (244) | 1,141 | 4,503 | (2,747) | |||||||||||
Adjusted EBITDA | $ 4,407 | 4.4 % | $ 14,879 | 13.2 % | $ 24,793 | 7.8 % | $ 22,034 | 6.9 % | |||||||
(1) | The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by us. Our non-GAAP net income excluded share-based compensation, and other non-recurring charges (recovery). Adjusted EBITDA was determined by excluding depreciation and amortization on property, plant and equipment, interest, provision for or benefit from income taxes, and non-GAAP pre-tax adjustments, as set forth above, from GAAP net income. We believe that the presentation of these non-GAAP items provides meaningful supplemental information to investors, when viewed in conjunction with, and not in lieu of, our GAAP results. However, the non-GAAP financial measures have not been prepared under a comprehensive set of accounting rules or principles. Non-GAAP information should not be considered in isolation from, or as a substitute for, information prepared in accordance with GAAP. Moreover, there are material limitations associated with the use of non-GAAP financial measures. |
Table 4 | |||||||
Three Months Ended | Nine Months Ended | ||||||
March 27, | March 28, | March 27, | March 28, | ||||
(In thousands) | |||||||
$ 46,165 | $ 49,402 | $ 151,713 | $ 149,589 | ||||
International: | |||||||
16,446 | 15,086 | 43,868 | 38,210 | ||||
10,333 | 9,429 | 29,318 | 23,376 | ||||
27,059 | 38,723 | 93,896 | 108,091 | ||||
Total international | 53,838 | 63,238 | 167,082 | 169,677 | |||
Total revenue | $ 100,003 | $ 112,640 | $ 318,795 | $ 319,266 | |||
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SOURCE Aviat Networks, Inc.