Q4 2026 Viavi Solutions Inc Earnings Call Transcript
Key Points
- Viavi Solutions Inc (VIAV) reported Q4 FY2026 revenue of $443.1 million, exceeding the high end of its guidance range, with a 52.5% year-over-year increase.
- The company's NSE segment saw strong demand from the data center ecosystem and aerospace and defense customers, with revenue up 69.2% year-over-year.
- Viavi Solutions Inc (VIAV) achieved record operating margins, with Q4 operating margin at 24%, above guidance, and full-year operating margin up 630 basis points to 20.6%.
- The company launched the industry's first validation solution for ultra Ethernet transport, extending its leadership in the high-speed Ethernet segment for AI and HPC workloads.
- Management expects continued robust growth, with Q1 FY2027 revenue guidance of $450-$460 million, and anticipates reaching $500 million in quarterly revenue sooner than originally planned, potentially in calendar 2027.
- The Spirent acquisition is fully integrated and ahead of schedule, with synergies realized and strong performance expected in the seasonally stronger second half of the calendar year.
- Viavi Solutions Inc (VIAV)'s wireless products continue to see anemic, albeit stable, customer demand, which remains a weak spot in the portfolio.
- The company's Q1 FY2027 guidance includes elevated variable costs due to a 14-week fiscal quarter, which will partially offset the benefit from a tariff refund.
- The service provider business, which includes field instruments and wireless products, is growing at a slow pace of only 1-2%, limiting overall growth potential.
- The transition to 1.6T technology is partially a substitution for 800G, which could temper the overall growth rate in the data center segment.
- The company faces potential headwinds from semiconductor pricing, although it has so far been able to pass on cost increases to customers.
- Viavi Solutions Inc (VIAV) did not repurchase any shares in Q4 as it prioritized debt management, which may limit shareholder returns in the near term.
Good afternoon. My name is Kendra, and I will be your conference operator today. At this time, I would like to welcome everyone to Viavi Solutions fiscal fourth quarter and fiscal 2026 earnings call. Today's conference is being recorded. (Operator Instructions)
Thank you, Kendra. Good afternoon, everyone, and welcome to Viavi Solutions fourth quarter and fiscal 2026 earnings call. My name is Vibhuti Nayar, Head of Investor Relations of Viavi Solutions. With me on today's call is Oleg Khaykin, our President and CEO; and Ilan Daskal, our CFO.
Please note this call will include forward-looking statements about the company's financial performance. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations and estimations. We encourage you to review our most recent annual report and SEC filings, particularly the risk factors described in those filings.
The forward-looking statements including the
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