Viavi Solutions Inc. Q3 2026 Earnings Recap

Viavi Solutions shares surged 21.4% after reporting fiscal Q3 2026 results well above the high end of guidance across revenue, operating margin, and EPS, with strong year-over-year growth driven by data center demand and contributions from the Spirent acquisition.

Key Takeaways

• Net revenue reached $406.8 million, up 42.8% year-over-year and 10.2% sequentially, beating the $386–$400 million guidance range.
• EPS of $0.27 exceeded guidance ($0.22–$0.24) and was up $0.12 year-over-year.
• Operating margin was 21%, up 430 basis points year-over-year and above the guided range (19.2%–20.2%).
• Network & Service Enablement (NSE) segment revenue jumped 54.4% year-over-year to $321.5 million, supported by Spirent product lines and robust data center and aerospace/defense demand.
• Cash flow from operations was negative $26.3 million, impacted by earn-out payments and debt prepayments; Viavi prioritized capital allocation to debt reduction over share repurchases this quarter.