Viavi Solutions Reports Strong Revenue Growth and Announces Restructuring Plan

Viavi Solutions has delivered robust financial results for its second quarter of fiscal year 2026, marked by significant revenue expansion. Concurrently, the company has initiated a strategic restructuring program aimed at enhancing operational efficiency, which includes a reduction of its global workforce.

The period, which concluded on December 27, 2025, saw the company achieve a net revenue of $369.3 million. This figure represents a substantial year-over-year increase of 36.4%. Profitability metrics also showed marked improvement, with the non-GAAP operating margin expanding by 440 basis points to reach 19.3%. On a per-share basis, non-GAAP earnings came in at $0.22.

Strategic Restructuring for Future Efficiency

In a move to align its cost structure with current market dynamics, Viavi's management recently approved a comprehensive restructuring plan. The initiative involves reducing its employee base by approximately 5% across its global operations. While the company anticipates incurring one-time charges of about $32 million related to this effort, it expects to realize annualized cost savings of roughly $30 million thereafter. A key objective of the plan is to more effectively integrate recently acquired businesses.

Should investors sell immediately? Or is it worth buying Viavi?

Parallel to its cost-management efforts, Viavi is prioritizing balance sheet strength. The company demonstrated this commitment in January by making a $100 million pre-payment on its existing "Term Loan B," which had a total principal of $600 million. This decisive action reduces overall liabilities and underscores a disciplined approach to financial management.

Key Sectors Driving Performance

The company's growth was primarily fueled by demand from two core areas: the data center ecosystem and applications within the aerospace and defense sectors. Its Network and Service Enablement (NSE) segment experienced a notable uptick in demand for products used in production and field deployment. Meanwhile, the Optical Security and Performance Products (OSP) segment benefited from steady, seasonally-driven demand for specialized offerings, including anti-counterfeiting technologies.

Looking ahead, Viavi has provided specific guidance for the third quarter of fiscal 2026, which ends on March 28, 2026. Management forecasts net revenue to land between $386 million and $400 million. Adjusted earnings per share are projected to be in the range of $0.22 to $0.24. This outlook signals the company's expectation that both its growth trajectory and improving profitability are set to continue.