Company Overview - Viavi Solutions is a global provider of network testing, monitoring, and assurance solutions, operating with a market capitalization of $3.91 billion and generating $1.15 billion in revenue over the trailing twelve months (TTM) [4][8] - The company reported a one-year price change of 68.4% as of December 4, 2025, with shares closing at $17.50 [4][6] - Viavi Solutions serves a diverse customer base, including communications service providers, enterprises, network equipment manufacturers, OEMs, government agencies, and the avionics industry [8] Recent Insider Transactions - Oleg Khaykin, President and CEO, sold 73,442 shares in multiple transactions for approximately $1.3 million, representing about 3.68% of his direct holdings before the sale [2][6] - Post-transaction, Khaykin retains direct ownership of 1,921,191 shares valued at approximately $33.6 million, which is about 0.86% of the company's outstanding shares [2][6] Financial Performance - Viavi Solutions achieved $1.08 billion in revenue for the fiscal year ending June 28, 2025, marking an 8% year-over-year increase [11] - The company reported a strong fiscal Q1 sales growth of 26% year-over-year, reaching $299.1 million, driven by demand in the data center, aerospace, and defense sectors [11] Market Context - The recent insider selling occurred just before the stock reached a 52-week high of $18.55 on December 5, 2025, indicating that the CEO may have capitalized on the stock's price increase [10] - The company is well-positioned for future growth, particularly with the expected expansion in data centers for the artificial intelligence sector [12]

Core Insights - Viavi Solutions Inc. (VIAV) reported strong first-quarter fiscal 2026 results, with revenues and net income exceeding Zacks Consensus Estimates, driven by growth in the Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments [1][4][10] Financial Performance - The company recorded a GAAP net loss of $21.4 million, or a loss of 10 cents per share, compared to a net loss of $1.8 million, or a loss of 1 cent per share in the same quarter last year [2] - Non-GAAP net income rose to $33.1 million, or 15 cents per share, from $12.4 million, or 6 cents per share in the prior-year quarter, surpassing the Zacks Consensus Estimate by 2 cents [3] Revenue Breakdown - Quarterly revenues reached $299.1 million, reflecting a 25.6% year-over-year increase, driven by strong demand in the NSE and OSP segments, and beating the consensus estimate of $294 million [4][10] - NSE segment sales were $216 million, up from $159.4 million, marking a 35.5% growth due to demand for fiber lab and production products, as well as aerospace and defense products [5] - OSP revenues increased to $83.1 million from $78.8 million, primarily due to strength in anti-counterfeiting products [5] - Revenue contributions from different regions included $128.8 million from America, $92.1 million from Asia-Pacific, and $78.2 million from EMEA, with respective year-over-year increases [6] Margins and Operating Performance - Non-GAAP gross margin for the quarter was 60%, up 90 basis points from the prior year, with NSE segment gross margin at 63%, up 210 basis points, while OSP segment gross margin decreased to 52.3%, down 300 basis points [7] - Total non-GAAP operating margin increased by 570 basis points year-over-year to 15.7%, with NSE operating margin rising 1,210 basis points to 7.5%, while OSP operating margin decreased by 250 basis points to 37.1% due to higher manufacturing costs [8] Cash Flow and Liquidity - Viavi generated $31 million in cash from operating activities, with free cash flow of $22.5 million, and had $543.8 million in cash and cash equivalents against $640.5 million in long-term debt as of September 27, 2025 [9] Future Outlook - For the second quarter of fiscal 2026, management anticipates revenues between $360 million and $370 million, with non-GAAP earnings per share expected to be between 18 cents and 20 cents [11] - NSE segment revenues are projected to be between $283 million and $293 million, with a non-GAAP operating margin of 13.6%, while OSP segment revenues are expected to be approximately $77 million, with a non-GAAP operating margin of 34% [11]