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VIAVI Solutions Reports First Quarter Fiscal 2026 Results

On October 29, 2025, VIAVI Solutions Inc. (NASDAQ: VIAV) unveiled its financial results for the first quarter of fiscal year 2026, which ended on September 27, 2025. With an impressive net revenue of $299.1 million, the company demonstrated a significant year-over-year growth of 25.6%, which translates to an increase of $60.9 million compared to the same period last year.

Despite the growth in revenue, VIAVI reported a GAAP operating margin of 2.5%, a decline of 230 basis points from the previous year. This drop contrasts with its non-GAAP operating margin, which rose to 15.7%, reflecting an improvement of 570 basis points. The company experienced a GAAP net loss of $21.4 million, marking a substantial rise of 1,088.9% from last year. On the flip side, its non-GAAP net income reached $33.1 million, a remarkable increase of 166.9%.

Performance Insights

Oleg Khaykin, VIAVI's President and CEO, highlighted that the company’s first-quarter performance exceeded expectations, primarily driven by robust demand within both the data center ecosystem and aerospace defense sectors. He stated, "We anticipate that the strong momentum in these end markets will persist throughout the fiscal year."

The gross margin for the quarter came in at 56.5%, slightly improving from 56.3% in the previous quarter but slightly down from 57.1% in Q1 of the prior fiscal year. This dynamic reflects ongoing investment in capability enhancement amidst changing market conditions.

Financial Breakdown

For the quarter, the net revenue was split by segment as follows:

• - Network and Service Enablement: $216.0 million (up 35.5% year-over-year)
• - Optical Security and Performance Products: $83.1 million (up 5.5% year-over-year)

Revenue distribution showed that customers from the Americas contributed 43.1%, followed by Asia-Pacific at 30.8%, and EMEA at 26.1%.

As of the end of September 2025, VIAVI's total cash, short-term investments, and restricted cash amounted to $549.1 million. The company holds an aggregate principal amount of $152.5 million in 1.625% Senior Convertible Notes and $250.0 million of 0.625% Senior Convertible Notes, total liabilities totaling $1.358 billion.

Looking Ahead: Q2 Fiscal 2026

With an optimistic outlook, VIAVI anticipates net revenue for the second quarter of fiscal 2026 to range between $360 million and $370 million, and non-GAAP EPS is expected to be between $0.18 to $0.20. The company has cited challenges reconciling GAAP net income per share with non-GAAP EPS due to the complexities around estimating certain reconciling items like restructuring and acquisition charges.

Conference Call

For those interested, VIAVI will conduct a live webcast discussing the quarterly results at 1:30 PM Pacific Time on October 29, 2025. The event will also be accessible for replay on the company’s investors' website at VIAVI Investor Relations.

About VIAVI Solutions

Founded in 1923, VIAVI Solutions is a global provider of network test, monitoring, and assurance solutions across multiple sectors including telecommunications, cloud, military, and aerospace. The company's innovative technologies make it a leader in light management solutions for various applications, emphasizing truthfulness, innovation, and robust market adaptability. Learn more about VIAVI at www.viavisolutions.com.