Aviat Networks (AVNW) EPS Rebound To US$0.44 Tests Profitability Turnaround Narrative

Aviat Networks (AVNW) has put up a clean Q2 2026 print, with revenue at US$111.5 million and basic EPS of US$0.44, underpinned by net income of US$5.7 million. The company has seen revenue move from US$118.2 million and EPS of US$0.35 in Q2 2025 to US$111.5 million and EPS of US$0.44 in Q2 2026, against a trailing twelve month EPS of US$1.15 on US$446.8 million of revenue. This gives a sense of the earnings base underpinning the latest quarter. For investors, a key focus now is how sustainable these margins look as the story shifts from merely posting profits to potentially building on them.

See our full analysis for Aviat Networks.

With the numbers on the table, the next step is to see how this earnings profile lines up against the widely followed growth and valuation narratives around Aviat Networks, and where those stories might need updating.

Curious how numbers become stories that shape markets? Explore Community Narratives

Trailing EPS Shows Clear Turnaround

• On a trailing twelve month basis, basic EPS has moved to US$1.15 on US$446.8 million of revenue, compared with quarterly EPS figures that ranged from a loss of US$0.94 in Q1 2025 to a profit of US$0.44 in Q2 2026.
• What stands out for bullish investors is that this shift to US$14.6 million of trailing net income sits against a five year history of declining earnings, which means:
  • Recent quarters where net income was positive at US$5.2 million, US$3.5 million, US$4.5 million and US$5.7 million contrast with the Q1 2025 loss of US$11.9 million.
  • This pattern supports the view that the business now has an earnings base to work from, even if the longer term track record included weaker profitability.

Revenue Growth Trails Broader Market

• Forecast revenue growth of 6.2% per year is below the 10.1% per year forecast cited for the wider US market, even though trailing revenue of US$446.8 million is higher than the US$409.6 million level seen in the earlier trailing period provided.
• Critics highlight that slower expected top line growth can sit awkwardly with a strong earnings story, and the recent figures show why:
  • Quarterly revenue has stayed within a relatively tight band between US$107.3 million and US$118.2 million across the last five reported quarters, so the improvement in EPS has come alongside only modest revenue changes.
  • This tension challenges a purely bullish take that earnings growth alone can carry the story, because the forecasts point to earnings expanding faster than revenue from a revenue base that is not projected to outpace the market.

Valuation Signals Versus Past Volatility

• At a share price of US$25.57, the stock is reported on a P/E of 22.5x, with an analyst price target of US$34.86 and a DCF fair value of US$55.63, while trailing net income stands at US$14.6 million.
• For a cautious investor, these valuation markers sit against a history of weaker earnings, which makes the bullish case conditional:
  • The reported gap between the current price and both the DCF fair value of US$55.63 and the US$34.86 analyst target supports a bullish view, given the move from losses in Q1 2025 to profits in each subsequent quarter.
  • At the same time, the earlier trailing period showed net losses of US$4.7 million, US$2.3 million and US$2.0 million, reminding bearish investors that the business has previously swung between profit and loss even though the latest year is now profitable.

To see how this mix of improving profitability and valuation gaps fits into the wider story that investors are telling, have a look at the balanced narrative that pulls these threads together. 📊 Read the full Aviat Networks Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Aviat Networks's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Aviat Networks is working from a profitable base, but relatively modest forecast revenue growth against the wider US market leaves the long term story looking less compelling.

If you want ideas with a clearer growth profile, use our CTA_SCREENER_STABLE_GROWTH to spot companies where consistent revenue and earnings expansion are already part of the track record.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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