Viavi Solutions (VIAV) stock is surging 15.55% in pre-market trading on Friday, following the release of its impressive fourth-quarter fiscal 2025 earnings report. The network test equipment and optical security products provider significantly outperformed analyst expectations, demonstrating robust growth across its key business segments.
The company reported Q4 FY2025 revenue of $290.5 million, marking a 15.3% increase from the previous year and surpassing the analyst consensus of $285.19 million. Viavi's non-GAAP earnings per share climbed to $0.13, beating the estimated $0.12 and representing a substantial 62.5% year-over-year growth.
Viavi's strong performance was driven by growth in both of its main business segments. The Network and Service Enablement (NSE) segment saw a 14.8% revenue increase, while the Optical Security and Performance Products (OSP) segment posted a 16.6% revenue growth. The company also reported improved operating margins, with the non-GAAP operating margin rising to 14.4%, up 3.5 percentage points from the previous year. Additionally, Viavi provided an optimistic outlook for Q1 FY2026, projecting revenue between $290 million and $298 million, and non-GAAP earnings per share of $0.13 to $0.14, further boosting investor confidence.