VIAVI’s Network and Service Enablement business generated 69.2% year-over-year revenue growth during its fiscal fourth quarter of 2026 as the company’s expansion into data center infrastructure and aerospace and defense markets accelerated.
Network and Service Enablement revenue reached $353.9 million compared with $209.1 million a year earlier and $321.5 million in the previous quarter. The segment accounted for approximately 80% of VIAVI’s $443.1 million of total Q4 revenue.
The segment’s profitability also improved substantially. Network and Service Enablement generated $227 million of GAAP gross profit, representing a 64.1% gross margin, and $70.7 million of operating income, representing a 20% operating margin. A year earlier, its operating margin was only 4.6%.
VIAVI’s overall Q4 revenue increased 52.5% year-over-year. GAAP operating margin expanded 850 basis points to 13.8%, while non-GAAP operating margin expanded 960 basis points to 24%.
GAAP net income increased 308.8% to $32.7 million, while non-GAAP net income increased 200% to $89.1 million. Non-GAAP diluted EPS increased 161.5% to $0.34.
For the full fiscal year, Network and Service Enablement revenue increased 52.3% to $1.183 billion from $776.6 million. Total VIAVI revenue increased 40% to $1.518 billion, while full-year non-GAAP operating margin expanded 630 basis points to 20.6%.
VIAVI has increasingly diversified its test and measurement business toward data center ecosystems and critical infrastructure. Its technologies are used across communications networks, military and aerospace systems, railway infrastructure and first responder communications, while the company also develops optical technologies for industrial, automotive and consumer applications.
Management specifically identified the data center ecosystem and aerospace and defense end markets as key drivers of fiscal 2026 growth and expects those markets to continue supporting expansion during the next several quarters.
VIAVI ended fiscal 2026 with $656.7 million of cash, short-term investments and restricted cash. The company generated $66.7 million of operating cash flow in Q4 and $113.9 million for the full year.
Momentum is expected to continue into fiscal 2027. VIAVI is guiding for first-quarter revenue of $450 million to $460 million and non-GAAP EPS of $0.40 to $0.42.
KEY QUOTES:
“VIAVI’s fourth quarter and fiscal year 2026 financial performance has exceeded our expectations, driven by strong growth in many of our end markets. Our diversification strategy into datacenter ecosystem and aerospace and defense end markets has been a key growth driver for us during FY26, and we expect this strategy to continue driving our growth for the next several quarters.”
Oleg Khaykin, President And Chief Executive Officer Of VIAVI
