Research Reports

Prepared Highlights

Overall Q1 FY2026: Net revenue of $299.1M, above guidance high end ($290M–$298M). Up 3% sequentially, up 25.6% YoY (CFO). Operating margin 15.7%, above guidance range (14.6%–15.4%) (CFO). EPS $0.15, above guidance ($0.13–$0.14), up $0.02 sequentially (CFO).
NSE segment: Revenue $216M, above guidance ($208M–$214M). Up 35.5% YoY, driven by data center ecosystem, lab/production, field products, and Inertial Labs acquisition (CFO). Gross margin 63%, +210 bps YoY; operating margin 7.5% vs. (4.6%) YoY (CFO).
OSP segment: Revenue $83.1M, in line with guidance ($82M–$84M). Up 5.5% YoY, driven by Anti-Counterfeiting and Other products (CFO). Gross margin 52.3%, –300 bps YoY; operating margin 37.1%, below guidance (38.1%–38.5%) (CFO).
Cash flow and CapEx: Operating cash flow $31M vs. $13.5M YoY. CapEx $8.5M vs. $7.3M YoY (CFO). Total cash/short-term investments $549.1M vs. $429M in Q4 FY2025 (CFO).
Share repurchase: Purchased ~2.7M shares for ~$30M during quarter; ~$170M remaining under authorization (CFO).
Acquisition: Closed acquisition of Spirent’s High-Speed Ethernet, network security, and channel emulation business lines from Keysight in mid-October; expected to add ~$200M annual revenue run rate (above prior estimate of ~$188M) (CFO).
Debt refinancing: Refinanced $250M, 1.625% convertible notes due Mar 2026 with $250M, 0.625% convertible notes due Mar 2031; $150M of proceeds included in cash balance (CFO).
Q2 FY2026 guidance – Total Viavi: Revenue $360M–$370M. Operating margin 17.9% ±60 bps. EPS $0.18–$0.20 (CFO).
Q2 FY2026 guidance – NSE segment: Revenue $283M–$293M (includes Spirent $45M–$55M). Operating margin 13.6% ±70 bps (CFO).
Q2 FY2026 guidance – OSP segment: Revenue ~$77M. Operating margin 34% ±50 bps (CFO).
Q2 FY2026 guidance – Other: Share count ~228.7M; tax expense ~$10M ±$500K; other income/expense net expense ~$12.2M (CFO).

Mgmt quotes:

“Net revenue for the quarter was $299.1 million which is above the high end of our guidance range.” (CFO)
“NSE revenue… was up 35.5% as a result of strong demand for lab and production as well as field products and was mainly driven by data center ecosystem.” (CFO)
“The data center ecosystem… drove strong demand for lab and production products in support of the AI data center build-out.” (CEO)
“With the recent acquisition of… Spirent's High-Speed Ethernet product line, we have further strengthened our position in the data center ecosystem.” (CEO)
“We expect the strong start in Q1 to continue throughout fiscal '26, supported by the stabilization and recovery of our mature end markets.” (CEO)

Prepared Metrics

Metric	Value	Speaker/Context
Net Revenue (Q1 FY2026)	$299.1M	CFO – above guidance high end; +25.6% YoY, +3% QoQ
Operating Margin (Q1 FY2026)	15.7%	CFO – above guidance range (14.6%–15.4%); +130 bps QoQ, +570 bps YoY
EPS (Q1 FY2026)	$0.15	CFO – above guidance ($0.13–$0.14); up $0.02 QoQ
NSE Revenue (Q1 FY2026)	$216M	CFO – above guidance ($208M–$214M); +35.5% YoY
NSE Gross Margin (Q1 FY2026)	63%	CFO – +210 bps YoY
NSE Operating Margin (Q1 FY2026)	7.5%	CFO – above guidance (5.4%–6.2%); vs. (4.6%) YoY
OSP Revenue (Q1 FY2026)	$83.1M	CFO – in line with guidance ($82M–$84M); +5.5% YoY
OSP Gross Margin (Q1 FY2026)	52.3%	CFO – –300 bps YoY
OSP Operating Margin (Q1 FY2026)	37.1%	CFO – below guidance (38.1%–38.5%); –250 bps YoY

Q&A Batch (1-5 of 7)

Q1 — Ruben Roy

Topic: 核心业务增长驱动力拆分（数据中心、航空航天与国防 vs 无线）
Key points:
- 剔除Spirent后，核心NSE业务环比增长约10%，同比增长近20%。
- 数据中心业务需求强劲，驱动因素包括：数据中心间光纤互联的专用光纤公司投资增加、1.6T/800G光生产测试设备增长。
- 航空航天与国防业务持续渐进增长；无线业务仍是唯一弱势环节（主要运营商无线支出疲软）。
Mgmt stance: 中性偏乐观——管理层认为数据中心和光纤互联正成为增长引擎，无线业务是“最后一个启动的汽缸”，但预计下个日历年可能随AI-RAN投资（如NVIDIA投资Nokia）而复苏。

Q2 — Ruben Roy（后续）

Topic: NSE业务运营利润率展望
Key points:
- 当前包含Spirent的季度营收约1.6亿美元。
- 预计2026日历年初，整合推进后营收可能提升约500万美元，达到约1.65亿美元/季度。
Mgmt stance: 中性——利润率改善依赖整合进度，短期温和提升。

Q3 — Mehdi Hosseini

Topic: 悲观情景下EPS展望及无线业务潜在催化剂
Key points:
- 假设无线不回暖，Spirent每股盈利贡献0.08美元，叠加光纤和智能手机增长，预计2026年底年化EPS接近1美元。
- 无线业务若恢复，将成为额外盈利增量催化剂（已落后于其他业务复苏）。
- 智能手机OSP业务：ASP压力已基本稳定，增量来自单位增长及亚洲Android厂商（尤其是中国）的3D人脸识别、车载LiDAR等新应用。
Mgmt stance: 乐观——管理层确认运营杠杆显著，每增量收入将大部分转化为利润，并认可EPS达1美元的可能性。

Q4 — Ryan Koontz

Topic: 数据中心市场机会、竞争格局及产品策略
Key points:
- 数据中心技术迭代周期从6-8年缩短至2-3年，产品周转更快、毛利率更高（先发优势）。
- 客户涵盖处理器公司、物理层/模块集成商、系统公司（Ciena等）及超大规模数据中心自研团队。
- 竞争格局：在Layer 0/Layer 1领域VIAV传统优势显著；收购Spirent后，在Layer 2-Layer 7领域主要对手为Keysight（通过收购Ixia）。
- 数据中心增长受双重驱动：网络速度（400G→800G→1.6T→3.2T）与芯片间互联（PCIe 5.0→6.0→7.0）同步迭代。
Mgmt stance: 乐观——管理层将数据中心生态比作“龙卷风”，强调VIAV处于技术前沿，且市场份额具有显著优势。

Q5 — Michael Genovese

Topic: Spirent收购营收上调、盈亏平衡时间及大型运营商趋势
Key points:
- Spirent年度营收（含信道仿真）从此前估计的1.88亿美元上调至约2亿美元。
- 营收更高可能使盈亏平衡时间提前（此前预期12个月）。
- 大型运营商（AT&T、Verizon等）有线侧：光纤业务逐步复苏，但实际支出需看到“真金白银”；预计明年采购加速。
- 专业级光纤运营商（如Lumen）专注数据中心间互联增长更快；未来还需连接基站至光纤（10G/100G需求）。
Mgmt stance: 中性偏乐观——管理层对传统运营商支出审慎但认为趋势向好，专业级光纤运营商是更快增长的“快艇”。

Q&A Batch (6-7 of 7)

Q6 — Andrew Spinola

Topic: Spirent acquisition margin profile and data center growth drivers
Key points:
- Spirent business has higher gross margin (mid- to high 60s) and higher operating profit than average NSE; net-net accretive.
- Management believes integration and greater scale (parts procurement, engineering/sales leverage) can further expand margins.
- Spirent’s data center growth is absolute but not same percentage as rest of data center business due to larger base; AI HSE (AI workload testing) segment growing even faster.
- Data center sales split: lab sales (R&D) driven by number of companies, projects, and chip generation cycles; production sales driven purely by units (more lines = more equipment). No official split provided.
Mgmt stance: Bullish — Spirent is accretive with margin expansion potential; data center growth is broad-based across units and projects.

Q7 — Timothy Savageaux

Topic: Spirent data center exposure, organic guidance, and Tier 1 telecom outlook
Key points:
- Spirent’s business split: ~80% data center ecosystem (chips, modules, systems, hyperscalers), ~20% enterprise (financial, insurance, firewalls).
- Organic guide of $310M–$320M for December quarter; incremental growth from Tier 2/Tier 3 players (professional grade) driven by hyperscaler contracts, not a traditional budget flush from Tier 1s.
- Field instruments: historically 90%+ service provider revenue, now 1/4 to 1/3 from data center-driven service provider ecosystem.
- Tier 1 carriers (Verizon, AT&T) signaling expansion next year; every 0.25% interest rate drop could free up cash for pent-up demand (assets sweated for 3–4 years).
- March quarter not expected to be materially different (Ilan Daskal).
Mgmt stance: Neutral-to-bullish — Tier 1 recovery is a potential accelerator but not yet material; current growth is from non-Tier 1 data center ecosystem.