Viavi revenue beats Q4 estimates as it diversified into data-center, aerospace, defense

Viavi Solutions

05/08/2026 22:03

Overview
US test and measurement firm's preliminary fiscal Q4 revenue rose 52.5% yr/yr, beating analyst expectations
GAAP diluted EPS for preliminary fiscal Q4 rose to $0.13 from $0.04 a year earlier
Company says diversification into datacenter and aerospace markets drove quarterly growth

Outlook
Viavi expects Q1 FY27 net revenue between $450 mln and $460 mln
Company sees Q1 FY27 non-GAAP EPS between $0.40 and $0.42
Viavi expects continued growth from datacenter and aerospace and defense diversification strategy

Result Drivers
MARKET DIVERSIFICATION - Co said results were driven by its diversification strategy into datacenter ecosystem and aerospace and defense end markets
NETWORK AND SERVICE ENABLEMENT - Segment revenue rose 69.2% yr/yr in Q4, making it the main contributor to overall revenue growth
OPTICAL SECURITY AND PERFORMANCE PRODUCTS - Segment revenue increased 9.6% yr/yr in Q4, contributing to overall growth

Company press release: ID:nPn4cCNRga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$443.10 mln
$432.62 mln (7 Analysts)
Q4 EPS
 
$0.13
 
Q4 Gross Margin
 
59.10%
 
Q4 Adjusted Operating Margin
 
24.00%
 
Q4 Operating Margin
 
13.80%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Viavi Solutions Inc. is $65.00, about 61.2% above its August 4 closing price of $40.32
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 45 three months ago

Reuters Recommended Reads
Aug 5 - Newly spun-off Honeywell Aerospace cuts 2026 forecast on supply-chain woes
Aug 4 - Arista forecasts upbeat quarterly revenue on AI-driven networking demand
Aug 4 - AMD growth momentum slows even as results beat on record data center demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)