Viavi Solutions reported second-quarter fiscal 2026 revenues of $251 million, representing a 36.4% year-over-year increase driven by strong demand in network service enablement and optical security products. Non-GAAP net income rose to $29 million, or $0.16 per share, compared with $0.09 per share a year earlier. These results surpassed consensus analyst estimates for both revenue and earnings per share, reflecting a broad-based recovery in data center testing and 5G network deployments.

Management raised full-year fiscal 2026 revenue guidance to a range of $960 million to $980 million, up from the prior outlook of $920 million to $950 million. Adjusted earnings per share guidance was lifted to $0.60 to $0.65, compared with the previous $0.50 to $0.55 range. This represents a sequential increase in quarterly revenue growth forecasts from 22% to 24%, signaling confidence in sustained demand for Viavi’s test and measurement solutions.

The company attributed its outperformance to robust orders in its network service enablement (NSE) segment, which grew 42% year-over-year, and optical security and performance (OSP) segment, up 31%. Data center build-outs in North America and Europe accounted for 48% of NSE revenue, while 5G infrastructure rollouts in Asia Pacific delivered 55% year-over-year gains in OSP. Defense and aerospace projects added an incremental $12 million in quarterly bookings.

Shares of Viavi Solutions jumped more than 17% on the day of the earnings release as institutional investors increased positions. Three major brokerages raised their ratings, citing margin expansion opportunities from ongoing supply-chain efficiencies and higher software content in instrumentation products. Short interest declined by 12% in the two weeks following the earnings announcement, indicating renewed bullish sentiment among market participants.