Viavi at Rosenblatt AI summit: data center and defense drive growth

On Monday, August 17, 2026, Viavi Solutions (VIAV) highlighted its expanding business at Rosenblatt's 6th Annual Technology Summit: The Age of AI (Part II). The company reported growth in data center testing and aerospace and defense sectors, even as new markets were still early in development. Viavi attributed its success to faster optical networks, resilient defense timing systems, and a shift in customer spending patterns amidst long adoption cycles.

The company's fourth quarter of 2026 saw continued strength in its Network and Software Enablement segment (NSE), with the mix shifting towards faster-growing end markets. With a $500 million quarterly revenue run rate, Viavi is targeting operating margins in the high-40% range, a significant improvement from prior guidance of about 30%. The company's revenue grew 40% year-over-year to $1.52 billion, with a robust gross profit margin of 61%.

Viavi's Optical Testing business is rapidly evolving, with a transition from 400G to 800G and then to 1.6T driving new complexity and increased content sales. CEO Oleg Khaykin emphasized that 1.6T equipment provides a 50% average selling price uplift compared to 800G equipment, largely due to more expensive components and broader test requirements.

The company has been selling 1.6T systems for over a year, primarily to developers and system vendors, with early production beginning in early 2026. Viavi's 1.6T platform is backward compatible, enabling customers to test 400G, 800G, and 1.6T modules on the same equipment, improving economics on a cost-per-bit basis.

Beyond transceivers, Viavi is expanding into co-packaged optics (CPO) and network package optics (NPO), competing more directly with semiconductor test companies. In the optical circuit switch market, Viavi is the dominant merchant equipment supplier and anticipates a significant content opportunity, with potential for a larger merchant market as AI data center architectures evolve.

Looking further ahead, the company is optimistic about wireless and radio access network (RAN) spending, expected to be a major growth driver in several years.