Viavi Solutions (VIAV) Q4 2026 Earnings Report

The call presented a meaningfully positive operating and financial beat: strong top-line beats, large year-over-year growth (Q4 +52.5% and FY +40%), substantial margin expansion, strong segment performance in NSE (driven by data center and Spirent products) and improved cash position with debt paydown. Near-term guidance is constructive with higher margins and EPS guidance. Offsetting items include dilution from recent share issuance, reliance on non-recurring tariff refunds that boosted margins/EPS, Spirent seasonality, and continued weak wireless/service-provider demand. Overall, the positives (large beats, margin expansion, strong segment momentum, cash/debt improvements, and optimistic forward guide) outweigh the negatives.

Viavi guided Q1 FY2027 revenue of $450–460M (expecting sequential growth) with NSE at $360–368M and OSP at $90–92M; company operating margin of 27.1% ±40 bps (including roughly a 100‑bp net benefit from an ~$11M tariff refund that is largely offset by the additional 14th‑week variable costs), NSE margin 23.1% ±50 bps, and OSP margin 43.2% ±20 bps; EPS $0.40–0.42 (including about $0.02 net benefit from tariff refunds/additional week), tax expense ≈ $12M ±$0.5M, other income/expense ≈ net $2.5M expense, and diluted share count ≈ 268M.