Viavi Solutions reported fiscal second quarter net revenue of $369.3 million, marking a 36.4% year-over-year increase driven by robust demand in data center and 5G applications. Non-GAAP net income rose 75.2% to $51.5 million, translating into diluted EPS of $0.22 versus $0.13 a year ago, comfortably surpassing consensus estimates. While GAAP results reflected a net loss of $48.1 million due to restructuring and other charges, the company’s adjusted operating margin expanded by 440 basis points to 19.3%.

The Network and Service Enablement segment delivered $291.5 million in revenue, up 45.8% year-over-year, as cloud service providers and hyperscale data centers accelerated testing and assurance deployments. Optical Security and Performance Products revenue rose 9.7% to $77.8 million, supported by defense and aerospace orders. Americas accounted for 46.3% of total net revenue, Asia-Pacific for 29.3% and EMEA for 24.4%, reflecting balanced global growth.

For the third quarter ending March 28, 2026, Viavi expects net revenue in the range of $386 million to $400 million and non-GAAP EPS between $0.22 and $0.24. Management highlighted continued momentum in the data center ecosystem and defense test markets as key drivers, with gross margin improvement anticipated from operational leverage on higher volumes.

On January 23, 2026, Viavi approved a restructuring plan affecting approximately 5% of its global workforce, targeting facility rationalizations and integration of recent acquisitions. The company expects to incur total charges of approximately $32 million, including $24 million in cash costs, with the majority recognized by June 2026. Upon completion by year-end, the plan is projected to yield approximately $30 million in annualized cost savings.