Earnings Recap — Q4 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 6 of last 6 quarters
Viavi Solutions Inc. reported Q4 FY2026 revenue of $443M, a beat of 2.4% against consensus, and EPS of $0.34, a beat of 14.1%.
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Viavi's results underscore the accelerating AI infrastructure buildout, with data center demand driving over 50% of NSE revenue and the company's test solutions essential for 1.6T, CPO, and OCS deployments. The company's raised outlook and earlier-than-expected $500M revenue milestone signal sustained capital intensity in AI data centers, benefiting the broader optical and networking supply chain.
Viavi delivered a strong Q4 with revenue of $443.1M, up 52.5% YoY, driven by data center ecosystem demand and the Spirent acquisition. NSE revenue grew 69.2% YoY, with data center now ~50% of NSE revenue, while OSP grew 9.6% YoY on 3D sensing strength. Operating margin expanded to 24%, and EPS of $0.34 beat guidance. The company completed a $575M follow-on offering to pay down debt, and ended the quarter with $656.7M in cash. Full-year revenue reached $1.518B, up 40% YoY, with operating margin of 20.6%.
Management guided Q1 FY2027 revenue to $450M-$460M, with NSE at $360M-$368M and OSP at $90M-$92M, implying sequential growth despite a seasonally soft quarter. Operating margin is expected at 27.1% ± 40 bps, with a net benefit of ~100 bps from a tariff refund offset by costs from a 14-week quarter. EPS guidance is $0.40-$0.42. Management expects continued robust growth in data center and aerospace & defense for several quarters, with data center now ~50% of NSE revenue. They see 1.6T ramping quickly, with potential parity with 800G in 2027. Operating margins are expected to trend to mid-to-high 20s as NSE grows faster and OpEx leverage continues.
“The data center ecosystem customer demand for our products remains very strong, and we expect continued robust growth in this segment for the next several quarters.”
on Data center demand
“I think that business, even if I take out Spirent, it's more than doubled for us year-over-year.”
on Data center growth
“I think the $500 million will likely come a bit sooner than what we were originally thinking, given the trajectory and the growth.”
on Revenue milestone
Can you give us an idea of the scale of optical and data center within your NSE domain? And what kind of growth rate you're seeing there now?
Data center is now about 50% of NSE revenue, with A&D about 17% and the rest service provider. Growth is very strong, with data center more than doubling year-over-year even excluding Spirent.
How are you thinking about longer-term operating margins as new programs like 1.6T ramp?
NSE gross margins are north of 60%, and as NSE grows faster than OSP, overall gross margin will keep trending up. OpEx is scaling well, growing slower than revenue, so operating margins should reach mid-to-high 20s in the not-too-distant future.
Can we get an update on OCS and CPO timing?
OCS is progressing, with some revenue now and more coming in the next several quarters as adoption broadens. CPO is on track, with revenue starting this quarter and accelerating in December. Testing intensity is higher, which is good for Viavi.