Viavi Solutions delivered a positive fourth quarter, with results above Wall Street’s revenue and profit expectations. Management attributed growth to robust demand from the data center ecosystem and increased momentum in aerospace and defense, which together now comprise a growing share of the business. CEO Oleg Khaykin highlighted, “The data center ecosystem, which includes high-performance semiconductors, optical modules, and network management systems, drove strong demand for lead and production products in support of AI data center build-out.” The company also benefited from contributions of recently acquired product lines and a recovery in anti-counterfeiting solutions.
Is now the time to buy VIAV? Find out in our full research report (it’s free for active Edge members).
Viavi Solutions (VIAV) Q4 CY2025 Highlights:
- Revenue: $369.3 million vs analyst estimates of $365.4 million (36.4% year-on-year growth, 1.1% beat)
- Adjusted EPS: $0.22 vs analyst estimates of $0.19 (17.2% beat)
- Adjusted EBITDA: $81.4 million vs analyst estimates of $75.07 million (22% margin, 8.4% beat)
- Revenue Guidance for Q1 CY2026 is $393 million at the midpoint, above analyst estimates of $357.2 million
- Adjusted EPS guidance for Q1 CY2026 is $0.23 at the midpoint, above analyst estimates of $0.15
- Operating Margin: 3.1%, down from 8.2% in the same quarter last year
- Market Capitalization: $5.99 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Viavi Solutions’s Q4 Earnings Call
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Ruben Roy (Stifel): Asked about the revenue mix shift toward data center and away from service providers. CEO Oleg Khaykin explained that the data center share now approaches 45%, largely due to AI infrastructure demand, while service provider revenue remains steady but grows more slowly.
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Ruben Roy (Stifel): Inquired about the visibility into future demand and backlog in the data center segment. Khaykin responded that Viavi now has up to three quarters of visibility for data center-related orders, compared to one quarter previously, reflecting more predictable customer project cycles.
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Ruben Roy (Stifel): Questioned the impact of the restructuring on specific product areas. CFO Ilan Daskal said the plan is broadly applied to increase operational efficiency, while Khaykin added that savings will be reinvested in higher-growth areas like data center and aerospace.
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Ryan Koontz (Needham): Requested details on defense market opportunities. Khaykin highlighted resilient positioning and timing solutions for autonomous vehicles and drones, as well as timing products for high-speed data centers requiring precise synchronization.
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Tim Savageaux (Northland Capital Markets): Probed the sustainability of growth in the Spirent product lines and the impact of seasonality on next quarter’s results. Daskal noted that government order timing affected recent results but expects a stronger contribution from Spirent next quarter due to pushed-out orders.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will monitor (1) sustained momentum in data center and aerospace demand, (2) the pace and effectiveness of Viavi’s workforce restructuring and reinvestment in growth segments, and (3) the integration of acquired product lines, particularly Spirent, and whether they deliver the anticipated synergies. Broader industry trends in AI and hyperscale infrastructure will also be critical to track.
Viavi Solutions currently trades at $26.06, up from $21.03 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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