VIAVI Revenue Jumps 56.9% to $469.3 Million in Fiscal First Quarter
Key Facts
VIAVI Solutions reported on November 4 results for its fiscal first quarter of 2027, which ended on October 3, posting revenue of $469.3 million, up 56.9% year over year. The company said revenue exceeded the high end of its guidance for the quarter, marking a strong start to the fiscal year as opportunities expanded in data centers, aerospace and defense. GAAP net income was about $76 million, compared with a net loss of $21.4 million in the year-earlier period. Non-GAAP diluted earnings per share also came in at $0.47, up 213.3% year over year. The results reflect sales growth and improved profitability during the period.
Non-GAAP operating margin rose to 29.0%, an increase of 1,270 basis points year over year, while GAAP operating margin was 17.4%. The two figures provide different accounting views of operating performance, as the non-GAAP result excludes certain items that are not included in the adjusted measure. In the fiscal fourth quarter of 2026, revenue was $443.1 million, up 52.5% year over year, while non-GAAP operating margin was 24.0%. The comparison shows that annual revenue growth accelerated to 56.9% in the first quarter and that adjusted margin rose from the previous quarter. The company reported first-quarter results above the high end of its guidance, though that does not mean all its segments grew at the same rate.
Most revenue came from the Network and Service Enablement segment, which posted $376.1 million, up 74.1% year over year. The Optical Security and Performance Products segment reported $93.2 million, up 12.2% year over year. The gap between the growth rates shows that the stronger increase was concentrated in network enablement, while the optical products segment grew more slowly. The CEO said the strong start to the fiscal year reflects market demand and expanding opportunities in data center, aerospace and defense markets. He added that the company expects growth momentum to continue, supported by underlying market demand and expanding opportunities in those markets.
Against this backdrop, VIAVI said in September that it was showcasing solutions for testing data center technologies at speeds of up to 1.6 terabits, with planning underway for 3.2-terabit technologies. The technologies covered in the company’s announcement included silicon photonics and co-packaged optics, which are associated with the development of optical networking components and links. The company said the TestCenter D2 platform enables testing of AI workloads across network layers two and three at 1.6 terabits. It also said the MAP-300 platform includes products for testing co-packaged optics and silicon photonics in manufacturing. The company’s March demonstrations included silicon photonics component manufacturing and 1.6-terabit Ethernet testing as part of solutions for validating AI networks.
On November 1, VIAVI’s board authorized a new program to repurchase up to $500 million of common stock, in addition to a previous authorization of $300 million approved in 2022. The company said the new program sets a ceiling for authorized purchases but does not require it to buy a certain number of shares. The decision follows the first-quarter results announcement but does not change the nature of the financial guidance the company gave for the following period. The CEO had described the strategy of diversifying into the data center ecosystem and the aerospace and defense sectors as a key growth driver during fiscal 2026. He said the company expects the strategy to continue having an impact in subsequent quarters.
For the second quarter of fiscal 2027, ending on January 2, 2027, the company expects revenue of between $505 million and $515 million and non-GAAP earnings per share of between $0.50 and $0.52. The guidance puts expected revenue for the next quarter above first-quarter revenue of $469.3 million and provides a range for adjusted earnings per share. In the market, VIAVI shares closed at $31.01 on November 10, after closing at $31.98 on November 9. Rating data published on November 5 showed that UBS maintained its Neutral rating and cut its price target from $44 to $33. On the same date, Needham maintained its Buy rating and lowered its price target from $60 to $53.