VIAV jumps after Q3 beat and raised Q4 outlook signal accelerating demand
VIAV•Viavi Solutions (VIAV) is surging after reporting fiscal Q3 results that beat expectations, including $406.8 million in revenue and non-GAAP EPS of $0.27. The company also raised its fiscal Q4 outlook to $427–$437 million in revenue and non-GAAP EPS of $0.29–$0.31, well above prior Street estimates.
1) What’s driving the move
Viavi Solutions shares are ripping higher today after the company delivered a fiscal third-quarter earnings beat and issued a stronger-than-expected fiscal fourth-quarter outlook. For the quarter ended March 28, 2026, Viavi reported revenue of $406.8 million, up 42.8% year over year, and non-GAAP EPS of $0.27. Management then guided fiscal Q4 revenue to $427 million–$437 million and non-GAAP EPS to $0.29–$0.31, a notable step-up from the revenue and profit levels the market had been modeling.
2) Key numbers investors are reacting to
The quarter showed both growth and operating leverage on an adjusted basis: non-GAAP operating margin reached 21.0% alongside the revenue jump. On a GAAP basis, results were noisier, with GAAP net income of $6.4 million and GAAP diluted EPS of $0.03 as restructuring, amortization, and financing-related items weighed on reported profitability, but the stock reaction suggests investors are prioritizing the acceleration in top-line demand and the upgraded near-term outlook.
3) What to watch next
The rally raises the bar for execution into the fiscal fourth quarter, where the company is projecting another sequential step-up in revenue and earnings. Investors will focus on whether momentum remains concentrated in data center-related testing and aerospace/defense applications, and whether the company can translate growth into cleaner GAAP profitability and stronger cash generation as restructuring actions and integration work continue.
