In the quarter ended December 27, 2025, VIAVI Solutions reported net revenues of $369.3 million, a 36.4% year-over-year increase driven by robust demand in data centers, 5G rollouts and defense applications. The company’s non-GAAP diluted EPS came in at $0.22, up 69.2% from $0.13 a year ago, comfortably outperforming the Zacks consensus of $0.19. On a GAAP basis, VIAVI recorded a net loss of $48.1 million, or $(0.21) per share, compared with a year-ago net income of $9.1 million, reflecting increased investments in new product introductions and integration of recent acquisitions.

VIAVI’s Network and Service Enablement segment generated $291.5 million in Q2 sales, up 45.8% year-over-year, while Optical Security and Performance Products delivered $77.8 million, a 9.7% increase. The Americas accounted for 46.3% of total revenue, Asia-Pacific for 29.3% and EMEA for 24.4%, underscoring broad global adoption of its test and measurement solutions across hyperscale data centers, telecom carriers and aerospace and defense customers.

Non-GAAP gross margin expanded by 70 basis points year-over-year to 61.8%, and non-GAAP operating margin improved 440 basis points to 19.3%. The company produced $42.5 million in operating cash flow during the quarter, ending December 27, 2025, with $772.1 million in total cash, short-term investments and restricted cash on its balance sheet against $1.275 billion of long-term debt and convertible notes.

On January 23, 2026, VIAVI approved a restructuring plan expected to affect approximately 5% of its workforce and incur charges of about $32 million, primarily cash severance, with anticipated annual cost savings of $30 million upon completion. For Q3 FY2026, management forecasts revenues between $386 million and $400 million and non-GAAP EPS of $0.22 to $0.24, reflecting continued strength in data center and aerospace and defense end markets.