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VIAVI Reports Impressive Second Quarter Fiscal 2026 Results

VIAVI Solutions, a prominent player in the test and measurement and optical technologies sector, released its financial results for the second quarter of fiscal year 2026, concluding on December 27, 2025. The results painted a positive picture, with the company successfully navigating a backdrop of strong demand across various end markets.

Financial Highlights

In the second quarter, VIAVI achieved net revenues of $369.3 million, marking a staggering increase of 36.4% compared to the same quarter in the previous year. This growth is reflective of the company’s solid performance in its Network and Service Enablement segment, which contributed significantly to the overall figures.

The GAAP operating margin, while slightly down to 3.1%, saw an adjustment with the non-GAAP operating margin rising to 19.3%, showcasing improved operational efficiencies. On the other hand, the non-GAAP net income registered at $51.5 million, up by 75.2% year-over-year, offering a positive outlook on the company’s profitability. Despite experiencing a GAAP net loss of $48.1 million, which was a reduction compared to previous losses, the results underline strong operational execution and strategic alignments.

CEO Oleg Khaykin expressed confidence in the outlook, stating that the positive momentum established in the data center ecosystem, aerospace, and defense sectors is expected to further bolster growth in the upcoming quarters.

Business Segments Performance

Breaking down the performance by segments, the Network and Service Enablement saw revenues of $291.5 million, reflecting a robust year-over-year growth of 45.8%. Conversely, the Optical Security and Performance Products segment reported revenues of $77.8 million, slight decline from the previous quarter but a 9.7% increase compared to last year.

With customers spanning across the Americas (46.3%), Asia-Pacific (29.3%), and EMEA regions (24.4%), VIAVI continues to strengthen its global footprint.

Restructuring Plan

In tandem with its performance announcement, VIAVI also disclosed a restructuring plan aimed at enhancing operational efficiencies. This strategic move is set to involve a global workforce reduction affecting approximately 5% of the staff. With anticipated costs around $32 million associated with this plan, including severance packages, the company also expects annualized savings of about $30 million once the plan is fully realized. The aim is to align workforce capabilities with the company’s strategic growth objectives.

Outlook for Upcoming Quarters

Looking ahead, VIAVI expects net revenue for the third quarter of fiscal 2026 to land between $386 million and $400 million, with non-GAAP EPS forecasted between $0.22 and $0.24. Moreover, the company plans to maintain a commitment to transparency, detailing the financial implications tied to their restructuring efforts and acquisitions in future reports.

Conclusion

Overall, VIAVI Solutions is positioned for a promising fiscal year amid encouraging operational metrics and strategic realignments. The unwavering demand in its primary sectors suggests robust potential for ongoing financial performance, affirming VIAVI's trajectory as a leader in optical technologies and test solutions.