VIAVI Solutions posted strong year-over-year growth in fiscal second-quarter 2026 revenue as demand accelerated across data center, aerospace, and defense markets. The company reported net revenue of $369.3 million for the quarter ended December 27, 2025, up 36.4% from a year earlier, driven primarily by gains in Network and Service Enablement. Management said results landed at the high end of guidance despite pressure on GAAP profitability.
Non-GAAP profitability expanded sharply as operating margin rose to 19.3%, up 440 basis points year over year, reflecting higher volumes and operating leverage. GAAP operating margin declined to 3.1%, reflecting acquisition-related costs and other expenses. Segment results showed Network and Service Enablement revenue rising 45.8% year over year to $291.5 million, while Optical Security and Performance Products grew 9.7% to $77.8 million.
VIAVI also announced a restructuring plan approved on January 23, 2026, targeting workforce alignment and integration of recent acquisitions. The plan impacts about 5% of employees and aims to deliver approximately $30 million in annualized cost savings once completed by the end of calendar 2026. For fiscal Q3 2026, VIAVI forecast revenue of $386 million to $400 million with non-GAAP EPS of $0.22 to $0.24.
- Q2 FY2026 revenue: $369.3 million, up 36.4% year over year
- Network and Service Enablement revenue: $291.5 million, up 45.8% year over year
- Non-GAAP operating margin: 19.3%, up 440 bps year over year
- Cash, short-term investments, and restricted cash: $772.1 million
- Restructuring plan: ~5% workforce reduction; ~$30 million annualized savings
- Q3 FY2026 outlook: $386–$400 million revenue; non-GAAP EPS $0.22–$0.24
“VIAVI’s performance for the second quarter came in at the high end of our guidance, driven by strength across most of our end markets,” said Oleg Khaykin, President and Chief Executive Officer of VIAVI. “We expect the strong momentum and demand in the data center ecosystem and aerospace and defense applications to continue driving our anticipated growth this calendar year.”
🌐 Analysis
VIAVI’s results highlight sustained investment in data center buildouts, where test, measurement, and assurance tools remain critical as operators scale bandwidth and transition to higher-speed optical links. The restructuring aligns with similar efficiency moves across the test and measurement sector as peers focus on margin expansion while supporting AI-driven network upgrades.
