Aviat Networks (AVNW)
NASDAQ:AVNW
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Aviat Networks
(NASDAQ:AVNW)
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Rating:54Neutral
Price Target:
$16.00
▼(-29.82% Downside)
Action:Reiterated
Date:05/09/26
Overall score reflects stabilizing but not compelling fundamentals (modest margins, low ROE, uneven cash conversion) as the primary driver, compounded by weak technicals with the stock well below key moving averages. The earnings call provides some support via maintained FY2026 guidance and improving YTD profitability trends, but valuation metrics are not supportive given the negative P/E and lack of dividend yield.
Positive Factors
Balance sheet strength
Moderate leverage with debt under 0.4x equity and solid equity relative to assets gives Aviat flexibility to fund product rollouts, manage cyclical revenue swings, and pursue opportunistic capital allocation. This supports multi-quarter stability in operations and investment capacity.
Negative Factors
Low profitability and margin compression
TTM net margin near 2% and materially lower margins versus prior peak years indicate limited earnings power. Persistently modest margins constrain reinvestment and shareholder returns, and mean upside depends on sustained structural margin recovery rather than one-off fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Moderate leverage with debt under 0.4x equity and solid equity relative to assets gives Aviat flexibility to fund product rollouts, manage cyclical revenue swings, and pursue opportunistic capital allocation. This supports multi-quarter stability in operations and investment capacity.
Read all positive factors
Aviat Networks Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue contributions from various business segments, showing which areas are the most lucrative and where growth opportunities or risks may lie.
Analyzes revenue contributions from various business segments, showing which areas are the most lucrative and where growth opportunities or risks may lie.
Data provided by:
The Fly
The FlyAviat Networks (AVNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$207.03M
Dividend YieldN/A
Average Volume (3M)169.54K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth0.23%
EPS GrowthN/A
CountryUS
Employees909
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.57
Shares Outstanding12,939,463
10 Day Avg. Volume213,845
30 Day Avg. Volume169,536
Financial Highlights & Ratios
PEG Ratio-2.59
Price to Book (P/B)1.15
Price to Sales (P/S)0.70
P/FCF Ratio-41.88
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue0.54
Enterprise Value/Gross Profit1.68
Enterprise Value/Ebitda7.33
Forecast
1Y Price Target
$29.20Price Target Upside28.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.4
Revenue Forecast (FY)$433.62M
Aviat Networks Business Overview & Revenue Model
Company Description
Aviat Networks, Inc. provides wireless transport solutions worldwide. It offers a comprehensive suite of products and localized professional and support services enabling customers to simplify their networks and lives. The company's products and s...
How the Company Makes Money
Aviat Networks primarily makes money by selling wireless transport networking equipment and related services to communications service providers and other network operators. Its revenue is mainly generated from (1) product sales: microwave/mmWave ...
Aviat Networks Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: near-term results were pressured by geopolitical-driven timing disruptions (approximately $9M of pushouts), leading to a meaningful Q3 revenue decline, lower Q3 gross margins and a GAAP loss. Offsetting these setbacks, year-to-date profitability metrics improved (YTD operating income and adjusted EBITDA up materially), working-capital trends showed sequential improvement, and multiple strategic growth drivers (MDU deployments, BEAD program timing, utility infrastructure demand, Aprisa momentum, and product rollout opportunities) underpin management’s confidence for FY2027 and beyond. Management provided updated FY2026 guidance with a range and reiterated cost and cash-flow focus. Overall, the call balances clear short-term headwinds with improving operating trends and sizable longer-term market opportunities.Positive Updates
Year-to-Date Revenue Stability and Regional Growth
Nine-month revenues of $318.8M were essentially flat versus prior year ($319.3M), down ~0.2% year-over-year. North America grew year-to-date by $2.1M, or 1.4%, and accounted for 46.2% of Q3 revenue, while international was 53.8%.
Negative Updates
Third-Quarter Revenue Decline and Geopolitical Disruption
Q3 revenues were $100.0M versus $112.6M in the prior-year quarter, a decline of approximately 12.6% year-over-year. Management attributed about $9M of revenue impact to project pushouts and end-of-quarter demand shifts related to the Middle East conflict.
Read all updates
Q3-2026 Updates
Positive
Negative
Year-to-Date Revenue Stability and Regional Growth
Nine-month revenues of $318.8M were essentially flat versus prior year ($319.3M), down ~0.2% year-over-year. North America grew year-to-date by $2.1M, or 1.4%, and accounted for 46.2% of Q3 revenue, while international was 53.8%.
Read all positive updates
Company Guidance
Aviat updated fiscal 2026 guidance to full‑year revenue of $428–$440 million and full‑year adjusted EBITDA of $35–$40 million; this reflects Q3 revenue of $100.0M, Q3 adjusted EBITDA of $4.4M (4.4% of sales) and Q3 non‑GAAP EPS of $0.06 (GAAP loss per share $0.16), with management citing roughly $9M of war‑related Q3 pushouts (some already shipped in early Q4) but expecting a seasonally strong Q4 to help restore gross margins toward the ~32%+ YTD level (YTD GAAP gross margin 31.7% / non‑GAAP 32.1%) and drive FY performance. Supporting balance‑sheet and operational metrics include YTD revenues of $318.8M, YTD adjusted EBITDA $24.8M (up 12.5%), cash and marketable securities $78.1M, debt $104.3M (net debt $26.1M), inventories down $4.0M sequentially, unbilled receivables $85.3M (down $5.4M QoQ), unearned revenue $77.6M, a $0.5M share repurchase (20k shares), and over $450M of NOLs with a potential foreign valuation allowance release within the next four quarters.Aviat Networks Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
68
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Jun 2025 | Sep 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 434.13M | 434.61M | 408.08M | 344.43M | 302.96M | 302.96M |
| Gross Profit | 140.51M | 139.44M | 144.73M | 122.38M | 109.23M | 109.23M |
| EBITDA | 32.13M | 17.68M | 24.24M | 28.02M | 33.45M | 33.45M |
| Net Income | 9.01M | 1.34M | 10.76M | 10.17M | 21.16M | 21.16M |
Balance Sheet | ||||||
| Total Assets | 616.54M | 633.30M | 535.22M | 363.14M | 323.90M | 323.90M |
| Cash, Cash Equivalents and Short-Term Investments | 78.13M | 59.69M | 64.62M | 22.24M | 47.77M | 47.77M |
| Total Debt | 106.67M | 90.92M | 52.18M | 2.75M | 2.92M | 2.92M |
| Total Liabilities | 344.77M | 370.11M | 279.34M | 144.40M | 122.15M | 122.15M |
| Stockholders Equity | 271.78M | 263.18M | 255.88M | 218.74M | 201.75M | 201.75M |
Cash Flow | ||||||
| Free Cash Flow | 11.86M | -7.25M | 27.86M | -6.98M | 997.00K | 14.45M |
| Operating Cash Flow | 20.98M | 5.72M | 30.54M | -1.64M | 2.79M | 17.30M |
| Investing Cash Flow | -10.09M | -28.53M | -35.22M | -11.95M | -7.79M | -2.85M |
| Financing Cash Flow | 16.89M | 18.68M | 48.70M | -681.00K | -4.87M | -8.05M |
Aviat Networks Technical Analysis
Negative
22.80
Price Trends
24.22
Negative
22.89
Negative
22.94
Negative
Market Momentum
-0.53
Negative
49.20
Neutral
87.44
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNW, the sentiment is Negative. The current price of 22.8 is above the 20-day moving average (MA) of 22.56, below the 50-day MA of 24.22, and below the 200-day MA of 22.94, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 49.20 is Neutral, neither overbought nor oversold. The STOCH value of 87.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVNW.
Aviat Networks Risk Analysis
Aviat Networks disclosed 34 risk factors in its most recent earnings report. Aviat Networks reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aviat Networks Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $312.42M | 25.27 | 34.98% | ― | 14.16% | 38.26% | |
67 Neutral | $222.50M | -9.86 | -108.84% | ― | -12.48% | 66.68% | |
62 Neutral | $225.62M | 368.77 | -1.22% | ― | -14.07% | -108.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $206.59M | 28.49 | 4.01% | 4.28% | 2.02% | -56.43% | |
58 Neutral | $562.76M | 81.87 | 12.49% | ― | 3.69% | -68.76% | |
54 Neutral | $207.03M | -35.86 | 3.37% | ― | 0.23% | ― |
* Technology Sector Average
AVNW
Aviat Networks
16.00
-4.68
-22.63%
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BKTI
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Aviat Networks Corporate Events
Financial DisclosuresRegulatory Filings and Compliance
Aviat Networks Updates Auditor Consent for Form S-3
Neutral
Mar 11, 2026
On September 10, 2025, Aviat Networks, Inc. filed its Annual Report on Form 10-K for the fiscal year ended June 27, 2025, but the auditor’s consent attached at that time did not reference the company’s Form S-3 shelf registration becau...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Aviat Networks Extends Tax Benefit Preservation Rights Plan
Neutral
Feb 27, 2026
On February 27, 2026, Aviat Networks amended its Amended and Restated Tax Benefit Preservation Plan with Computershare Inc. as rights agent to extend the plan’s final expiration date from its prior term to March 3, 2029. The board adopted an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.