Viavi Posts $469.3 Million in Fiscal First-Quarter Sales

The Tip Desk · November 5, 2026 · 2 min read

The test-and-measurement company guided second-quarter revenue to $505 million–$515 million after $469.3 million of sales in the fiscal first quarter.

Viavi Solutions (VIAV) reported fiscal first-quarter net revenue of $469.3 million for the period ended October 3, 2026, up 56.9% from a year earlier, as year-over-year growth accelerated from 52.5% in the fiscal fourth quarter and 42.8% in the fiscal third quarter.

The Chandler, Arizona, test-and-measurement company said the result came in above the high end of its first-quarter outlook of $450 million to $460 million. President and Chief Executive Officer Oleg Khaykin said fiscal 2027 was off to a strong start and that the company expects growth momentum to continue, citing demand in data-center and aerospace-and-defense end markets.

GAAP operating margin widened to 17.4%, up 1,490 basis points from a year earlier, after 13.8% in the fiscal fourth quarter and 6.1% in the fiscal third quarter. Non-GAAP operating margin reached 29.0%. GAAP net income was $76.0 million, or $0.29 a share, versus a year-earlier loss of $0.10 a share. Non-GAAP diluted earnings were $0.47 a share.

Network and Service Enablement remained the growth engine. The segment posted $376.1 million of net revenue, up 74.1% year over year, and accounted for the bulk of the company’s sales. GAAP operating income in the segment was $95.8 million, for a 25.5% operating margin. Optical Security and Performance Products contributed $93.2 million of net revenue, up 12.2% year over year, with GAAP operating income of $40.3 million and a 43.2% operating margin.

Americas, Asia-Pacific and EMEA customers represented 43.9%, 34.7% and 21.4% of total net revenue, respectively.

Cash generation strengthened with the sales expansion. The company generated $104.7 million of cash flows from operations in the fiscal first quarter, after $66.7 million in the fiscal fourth quarter and a $26.3 million use of cash in the fiscal third quarter. As of October 3, 2026, it held $535.3 million in cash, short-term investments and short-term restricted cash. Outstanding debt included $250.0 million of 0.625% senior convertible notes and $400.0 million of 3.75% senior notes, with a total net carrying value of $642.5 million.

On November 1, 2026, the board authorized a new common-stock repurchase program of up to $500 million, in addition to the 2022 plan, which had about $18.4 million remaining. The company said it is not obligated to repurchase any particular amount.

For the second quarter of fiscal 2027 ending January 2, 2027, Viavi expects net revenue of $505 million to $515 million and non-GAAP EPS of $0.50 to $0.52. The company said it has not reconciled GAAP net income to non-GAAP EPS for that period because it cannot estimate certain restructuring, acquisition and integration items without unreasonable effort.