Q1 25 EPS

$0.06

BEAT +0.00%

Est. $0.06

Q1 25 Revenue

$238.2M

MISS 0.79%

Est. $240.1M

vs S&P Since Q1 25

+413.4%

BEATING MARKET

VIAV +441.8% vs S&P +28.4%

Market Reaction

Did VIAV Beat Earnings? Q1 2025 Results

VIAVI Solutions posted a mixed first quarter for fiscal 2025, matching earnings expectations while falling just short on revenue, as persistent softness in its core networking business weighed on results. The company reported non-GAAP EPS of $0.06, i… Read more VIAVI Solutions posted a mixed first quarter for fiscal 2025, matching earnings expectations while falling just short on revenue, as persistent softness in its core networking business weighed on results. The company reported non-GAAP EPS of $0.06, in line with the consensus estimate, while revenue of $238.20 million trailed the $240.10 million analyst forecast by 0.79% and declined 3.9% from the year-ago period. The primary drag came from the Network and Service Enablement segment, where combined revenue slipped to $159.40 million from $170.40 million a year earlier and the segment swung to a GAAP operating loss of $7.30 million. Partially offsetting that weakness, the Optical Security and Performance Products segment delivered $78.80 million in revenue with a robust 39.6% operating margin. CEO Oleg Khaykin pointed to improving order momentum in advanced fiber products, including 800G and 1.6Tb offerings, as a signal of better days ahead, with the company guiding Q2 revenue of $255 million to $265 million and non-GAAP EPS of $0.09 to $0.11.

Key Takeaways

  • Weaker demand in NSE segment partially offset by stronger OSP performance
  • OSP segment grew 1.7% YoY with 39.6% operating margin
  • NSE combined revenue declined due to lower network and service enablement demand
  • Gross margin compression of 110 bps YoY to 57.1%
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VIAV YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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VIAV Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 24 Q3 26
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VIAV Revenue by Geography

With YoY comparisons, source: SEC Filings

Q4 24 Q3 26

“VIAVI's Q1FY25 revenue came in slightly below the midpoint of our guidance, with weaker demand in NSE partially offset by stronger OSP performance. On a positive side, we are starting to see a pickup in the NSE order momentum with our advanced fiber products such as 800G and recently announced 1.6Tb, being particularly strong. This aligns with our expectations for the beginning of NSE demand recovery in second half of FY25.”

— Oleg Khaykin, Q1 2025 Earnings Press Release