Viavi Solutions (VIAV) risk factors, FY2026 10-K

Viavi Solutions's FY2026 10-K, filed Aug 13, 2026, lists 34 risk factors in 6 groups. Against the prior year's 33: 2 new, 1 dropped, 5 substantially reworded.

Open VIAV in Gloom →
Viavi Solutions' chart, financials and news, free in your browser.Open VIAV in Gloom →
Risk factors listed
346 groups
New this year
2vs 33 last year
Dropped
1since the prior 10-K
Substantially reworded
5of those kept
Section length
10k wordsItem 1A

What the changes say

  • New risks emphasize Huawei-related export controls, tariffs, and the BIS 50% Affiliates Rule through 2026.
  • Stock volatility now highlights data center, telecommunications, aerospace, defense, AI infrastructure, cloud, and optical-networking sentiment.
  • Acquisition risk shifts from Spirent closing and regulatory approvals to realizing synergies and avoiding integration disruption.
  • Geopolitical wording adds Middle East political instability and economic uncertainty; the debt risk removes the $425 million term-loan example.

What changed since the prior 10-K

New

  • NewLegal, Regulatory and Compliance Risks

    U.S. government trade actions and restrictions could have an adverse impact on our business, financial position, and results of operation

    U.S.-China trade barriers, Huawei export restrictions, and the BIS 50% Affiliates Rule could constrain VIAVI products, support, and global supply chains.

  • NewGeneral Risks

    Our stock price has experienced significant volatility and may continue to fluctuate, which could adversely affect the value of an investment in our common stock

    Volatility in orders, financial results, AI and cloud investment sentiment, optical networking, defense spending, and broader markets could reduce VIAVI’s stock value.

Dropped

  • DroppedLegal, Regulatory and Compliance Risks

    The U.S. and China have been engaged in protracted negotiations over the Chinese government’s acts, policies, and practices related to technology transfer, intellectual property, and innovation

Reworded

  • 65% rewrittenRisks Related to our Liquidity and Indebtedness

    Despite our current level of indebtedness, we and our subsidiaries may still be able to incur substantially more debt

    Removes the specific $425 million seven-year term-loan commitment for the pending Spirent acquisition while retaining the risk of substantial additional debt.

  • 58% rewrittenRisks Related to Our Business Strategy and Industry

    VIAVI is subject to risks associated with its acquisitions, and any failure to realize anticipated benefits of such acquisitions

    Replaces Spirent closing, regulatory-approval, and timing risks with broader risks that acquisitions fail to deliver benefits or disrupt operations during integration.

    Was: VIAVI is subject to risks associated with its recent and proposed acquisitions, including completion of proposed acquisitions in the anticipated timeframes or at all, and any failure to realize anticipated benefits of such acquisitions

  • 45% rewritten

    Geopolitical conditions, including political turmoil and volatility, regional conflicts, terrorism and war could result in market instability, which could negatively impact our business results

    Adds political instability and economic uncertainty in the Middle East to the geopolitical risks affecting technology transfers, sales, and operations.

  • 28% rewrittenOperational Risks

    The use of open-source software and generative artificial intelligence may expose us to risks and harm our intellectual property position

    The provided current text is substantively unchanged, continuing to cover open-source and GenAI licensing obligations that could expose source code.

  • 24% rewrittenRisks Related to Our Business Strategy and Industry

    Our profitability in a particular period will be impacted by revenue, product mix and operational costs that vary significantly across our product portfolio and business segments

    The provided current text is substantively unchanged in its discussion of procurement timing, telecom spending, product mix, pricing pressure, shortages, and customer concentration.

All 34 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Geopolitical conditions, including political turmoil and volatility, regional conflicts, terrorism and war could result in market instability, which could negatively impact our business results45% rewritten

Risks Related to Our Business Strategy and Industry

  1. 02Our profitability in a particular period will be impacted by revenue, product mix and operational costs that vary significantly across our product portfolio and business segments24% rewritten
  2. 03Rapid technological change in our industry presents us with significant risks and challenges, and if we are unable to keep up with the rapid changes, our customers may purchase less of our products
  3. 04Unfavorable, uncertain or unexpected conditions in the transition to new technologies may cause our growth forecasts to be inaccurate and/or cause fluctuations in our financial results
  4. 05We may experience increased pressure on our pricing and contract terms due to our reliance on a limited number of customers for a significant portion of our sales
  5. 06Movement towards virtualized networks and software solutions may result in lower demand for our hardware products and increased competition
  6. 07We face a number of risks related to our strategic transactions
  7. 08VIAVI is subject to risks associated with its acquisitions, and any failure to realize anticipated benefits of such acquisitions58% rewritten
  8. 09We may not generate positive returns on our research and development strategy

Operational Risks

  1. 10Our restructuring activities could adversely affect our business and results of operations
  2. 11Management transitions and talent retention create uncertainties that could harm our business
  3. 12Our customers are located throughout the world. In addition, we have significant operations outside North America, including product development, manufacturing, sales and customer support operations
  4. 13Our business and operations could be adversely impacted in the event of a failure of information technology infrastructure
  5. 14If we have insufficient proprietary rights or if we fail to protect those we have, our business would be materially harmed
  6. 15Our products may be subject to claims that they infringe the intellectual property rights of others
  7. 16The use of open-source software and generative artificial intelligence may expose us to risks and harm our intellectual property position28% rewritten

Legal, Regulatory and Compliance Risks

  1. 17Certain of our products are subject to governmental and industry regulations, certifications and approvals
  2. 18We receive formal and informal government inquiries or audits related to our products, practices or services from time to time
  3. 19U.S. government trade actions and restrictions could have an adverse impact on our business, financial position, and results of operationNew
  4. 20Failure to maintain satisfactory compliance with certain privacy and data protections laws and regulations may harm our business
  5. 21We may be subject to environmental liabilities
  6. 22Our business is subject to evolving regulations and expectations with respect to sustainability matters that could expose us to numerous risks
  7. 23We may be subject to risks related to climate change, natural disasters and catastrophic events

Risks Related to our Liquidity and Indebtedness

  1. 24Any deterioration or disruption of the capital and credit markets may adversely affect our access to sources of funding
  2. 25Despite our current level of indebtedness, we and our subsidiaries may still be able to incur substantially more debt65% rewritten
  3. 26Our notes increase our overall leverage and our convertible notes could dilute our existing stockholders and lower our reported earnings per share
  4. 27Our outstanding indebtedness may limit our operational and financial flexibility
  5. 28We may not generate sufficient cash flow to meet our debt service and working capital requirements, which may expose us to the risk of default under our debt obligations
  6. 29The terms of the indentures that govern the Notes and the agreements that govern our secured credit facility restrict our current and future operations

Tax Risks

  1. 30Our ability to use our net operating loss carryforwards to offset future taxable income may be subject to certain limitations and/or changes in regulations
  2. 31Changes in tax legislation or policies could materially impact our financial position and results of operations
  3. 32The Pillar Two rules generally became effective starting with VIAVI’s fiscal 2025. We consider these laws when recording our income tax provision under ASC 740

General Risks

  1. 33Certain provisions in our charter and under Delaware laws could hinder a takeover attempt
  2. 34Our stock price has experienced significant volatility and may continue to fluctuate, which could adversely affect the value of an investment in our common stockNew

Other Viavi Solutions 10-Ks

  • FY2025 10-K risk factors
    33 risks

    Acquisitions like Inertial Labs and Spirent integration bring strategic growth and integration risks alongside high indebtedness from senior notes. Reliance on telecom carrier and cable operator spending volatility, plus customer concentration, heavily impacts profitability. Global operations face complex geopolitical trade restrictions involving Huawei and evolving international tax policies like Pillar Two.

    Filed Aug 11, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.