Viavi Solutions (VIAV) Q4 2026 earnings summary

Executive summary

• Fiscal Q4 2026 revenue reached $443.1M, up 52.5% year-over-year and 8.9% sequentially, with strong growth in data center, aerospace & defense, and successful integration of Spirent and Inertial Labs product lines.

• Non-GAAP operating income was $106.4M, up 153.9% year-over-year, with a non-GAAP operating margin of 24.0%.

• Non-GAAP EPS was $0.34, up 161.5% year-over-year, exceeding guidance.

• Full-year 2026 revenue was $1.518B, up 40% year-over-year; full-year non-GAAP EPS was $1.00, with significant improvement in both GAAP and non-GAAP profitability.

• Growth was driven by robust demand in data center, aerospace & defense, and diversification into new markets.

Financial highlights

• Q4 GAAP gross margin was 59.1%, non-GAAP gross margin was 62.3%, both up year-over-year.

• Q4 operating margin reached 24% (non-GAAP), up 960 bps year-over-year; GAAP operating margin was 13.8%, up 850 bps.

• Q4 non-GAAP net income was $89.1M, up 200% year-over-year; Q4 GAAP net income was $32.7M, up 308.8% year-over-year.

• Cash and short-term investments at Q4 end were $656.7M; short-term debt $244.8M, long-term debt $397.1M.

• Q4 operating cash flow was $66.7M; full-year operating cash flow was $113.9M.

Outlook and guidance

• Q1 FY27 revenue expected between $450M–$460M; NSE $360M–$368M; OSP $90M–$92M.

• Q1 operating margin expected at 27.1% ± 40 bps, with non-GAAP EPS between $0.40–$0.42.

• Guidance includes a net benefit from $11M tariff refund, offset by an additional week of variable costs.

• Continued strong demand anticipated in data center and aerospace & defense; OSP to benefit from 3D sensing.