Viavi Reports Q3 Revenue Up 42.8% to $406.8M with EPS $0.27
Viavi Solutions delivered Q3 net revenue of $406.8 million, up 42.8% year-over-year, with operating margin of 21% and non-GAAP EPS of $0.27, both above guidance. Integration of Spirent product lines drove a 54.4% surge in NSE revenue while Q4 guidance targets $427–437 million and $0.29–0.31 EPS.
1. Strong Q3 Financial Performance
Viavi Solutions reported Q3 net revenue of $406.8 million, up 42.8% year-over-year, exceeding the high end of guidance. Operating margin reached 21% and non-GAAP EPS of $0.27 rose 80% year-over-year, driven by robust demand in data center, aerospace and defense markets.
2. Spirent Acquisition Drives NSE Growth
The integration of Spirent product lines led to a 54.4% year-over-year increase in network and service enablement revenue. Management highlighted cross-selling opportunities and plans for a 3.2 terabit integrated solution combining Spirent hardware with Viavi’s optical transport and test capabilities.
3. Operating Cash Flow and Margin Pressures
Cash flow from operations swung to a negative $26.3 million from a positive $7.8 million last year, while cash and short-term investments declined to $508 million. OSP gross margin narrowed by 130 basis points due to an unfavorable product mix, and wireless test demand remains subdued.
4. Positive Q4 Guidance Signals Continued Momentum
Viavi forecasted Q4 revenue of $427–437 million and non-GAAP EPS of $0.29–0.31, reflecting confidence in sustaining data center momentum and leveraging volume growth for further margin expansion through component cost management.