Viavi Solutions (NASDAQ: VIAV) Posts 52.5% Revenue Growth in Q4 FY2026, Raises Q1 Outlook

Viavi Solutions (NASDAQ: VIAV) reported fiscal fourth-quarter revenue of $443.1 million, up 52.5% year over year, with adjusted EPS of $0.34 beating the $0.30 consensus estimate by 13.3%. GAAP net income reached $32.7 million, up 308.8% from $8.0 million in the prior-year period. Shares fell -3.52% on Wednesday, August 5, 2026, while the S&P 500 declined 0.20%.

Q4 FY2026 Results (Quarter Ended June 27, 2026)

• Revenue: $443.1 million, up 52.5% year over year from $290.5 million
• GAAP operating income: $61.3 million, up 300.7% year over year; GAAP operating margin expanded 850 basis points to 13.8%
• Adjusted operating income: $106.4 million, up 153.9% year over year; adjusted operating margin expanded 960 basis points to 24.0%
• Adjusted EPS: $0.34, up 161.5% from $0.13 in Q4 FY2025; GAAP EPS of $0.13, up 225.0% year over year
• Operating cash flow: $66.7 million for the quarter

What Drove the Results

Adjusted EPS of $0.34 beat the $0.30 consensus by 13.3%, and revenue of $443.1 million exceeded guidance. The Network and Service Enablement segment was the primary growth engine, with revenue of $353.9 million, up 69.2% year over year, reflecting demand from data-center customers, aerospace and defense markets, and contributions from acquired Spirent product lines. The Optical Security and Performance Products segment contributed $89.2 million, up 9.6% year over year.

Gross margin on a GAAP basis expanded 280 basis points year over year to 59.1%, while adjusted gross margin improved 220 basis points to 62.3%. GAAP and adjusted operating margins both expanded materially, with revenue and profitability moving in lockstep. For the full fiscal year ended June 27, 2026, net revenue reached $1.52 billion, up 40.0% from $1.08 billion, and adjusted EPS grew 112.8% to $1.00 from $0.47 in FY2025.

GAAP net income for the full fiscal year was a loss of $30.4 million, reflecting non-cash charges including costs associated with the Spirent acquisition and integration that are excluded from the adjusted figures. The divergence between GAAP and adjusted net income underscores the magnitude of acquisition-related costs absorbed during the integration period.

Guidance for Q1 FY2027

For the first quarter of fiscal 2027 ending October 3, 2026, Viavi guided revenue of $450 million to $460 million and non-GAAP EPS of $0.40 to $0.42. The Q1 revenue midpoint of $455 million represents sequential growth from the $443.1 million reported in Q4 FY2026. President and CEO Oleg Khaykin stated that the company's diversification into data-center ecosystem and aerospace and defense end markets has been a key growth driver in FY2026, and the company expects this strategy to continue driving growth over the next several quarters.

Wall Street View

Wall Street's current analyst consensus leans constructive on Viavi heading into FY2027, with guidance calling for a further step-up in both revenue and profitability. The company ended the quarter with $656.7 million in total cash, short-term investments, and short-term restricted cash, against $641.9 million in net debt carrying value from $250.0 million in 0.625% Senior Convertible Notes and $400.0 million in 3.75% Senior Notes.

Investor Takeaway

Viavi's Q4 FY2026 results demonstrated that the Spirent integration is contributing materially to both revenue scale and margin expansion, with adjusted operating margin reaching 24.0% compared to 14.4% a year ago. The Q1 FY2027 guidance range of $0.40 to $0.42 in adjusted EPS would represent a meaningful acceleration from Q4's $0.34, suggesting management expects the demand environment in data-center and aerospace and defense markets to remain constructive. Investors tracking the GAAP versus adjusted divergence will want to watch whether acquisition-related charges moderate in FY2027 as integration activity matures.