Viavi Solutions (VIAV)

Network test + optical instruments (Viavi) — test/measurement for networks + optical

AI exposure 18% — derived from reported segment revenue, not asserted.

Where it sits

Connectivity → Test & Measurement Instruments · figures rebased to FQ4 FY2026, reported 2026-08-05

Network test & measurement instruments… is 78% of revenue, so Test & Measurement Instruments is effectively the whole company rather than one leg of it. The rest is tagged separately: Optical Components & Photonics at 12%.

Also tagged: emerging in Connectivity → Optical Components & Photonics.

Reported segments

• Network & Service Enablement (NSE) — 78% of revenue
• Optical Security & Performance (OSP) — 22% of revenue

Viavi Solutions ($1.518B FY2026, +40% — Spirent acquisition closed Oct 2025, folded into NSE) — network test + optical products. NSE ~78% (FY2026 $1.183B; 80% in FQ4 — test & measurement incl. Spirent: fiber/5G/800G-1.6T data-center + PCIe 6.0 validation = primary B3 Test & Measurement Instruments) + OSP ~22% (FY2026 $335.4M: 3D-sensing filters + optical coatings ~12% = B3 Optical Components [real optical components, consumer/industrial photonics]; anti-counterfeit banknote pigments ~10% = off-map). Primary B3 Test & Measurement Instruments. Candidate B3 Optical Components tag…

How the 18% is built

• Network & Service Enablement (NSE) — 78% of revenue × 20% AI-driven (estimate). revPct re-based to FY2026 disclosure (NSE $1.183B of $1.518B). aiShare held at 20: management attributes the organic strength to 'datacenter and aerospace/defense' jointly with no split, and much of the reported 69.2% NSE growth is acquired Spirent revenue rather than AI-driven high-speed-Ethernet test
• Optical Security & Performance (OSP) — 22% of revenue × 10% AI-driven (estimate). revPct re-based (OSP $335.4M, 22% of FY2026). Optical coatings, 3D-sensing filters and anti-counterfeiting pigments grew ~9% YoY independently of network capex

Investment read

Moat. Network test and measurement, transformed by the Spirent acquisition (closed October 2025): FY2026 revenue $1.518B, +40%, with NSE now ~80% of revenue and +69.2% in FQ4. Test spend is non-deferrable — every new switch ASIC, transceiver and PCIe interface must be validated before it ships — but Keysight, Anritsu and EXFO contest the same standards-driven niches.

Bottleneck / pricing power. Moderate pricing power in specialised test niches, now showing genuine operating leverage: FQ4 2026 non-GAAP operating margin reached 24.0%, up 960bps YoY, on a 62.3% gross margin. The honest caveat is that GAAP still printed an FY2026 net loss of $(30.4)M on acquired-intangible amortisation, with operating cash flow under half of non-GAAP earnings.

Role in the AI stack. The network/optical test-and-measurement layer.

Connected companies

• Cisco Systems (CSCO) — VIAV supplies: network test, monitoring & assurance for equipment makers
• Ciena (CIEN) — VIAV supplies: optical/network test & field instruments
• Keysight Technologies (KEYS) — VIAV competes with: Keysight (broad comms/network T&M) vs Viavi (network/fiber/5G lab + field test) — overlapping network test buyers
• Anritsu (ANIRY) — VIAV competes with: network test rivalry — Viavi vs Anritsu
• Teledyne Technologies (TDY) — VIAV competes with: adjacent electronic-test overlap only — Teledyne LeCroy oscilloscopes vs Viavi network/fiber test serve different buyers
• Arista Networks (ANET) — VIAV supplies: network test/validation instruments for Arista equipment
• Coherent (COHR) — VIAV competes with: optical filters/coatings/3D-sensing — Viavi vs Coherent (optical components)
• Alphabet (GOOGL) — VIAV supplies: network test instruments for Google data-center validation
• Meta Platforms (META) — VIAV supplies: network test for META AI data centers
• Amazon (AMZN) — VIAV supplies: optical/network test instruments for AMZN data-center fiber plant
• Oracle (ORCL) — VIAV supplies: network test for ORCL AI data centers
• CoreWeave (CRWV) — VIAV supplies: optical/network test sold mainly to CRWV's optics and carrier suppliers

Others in Test & Measurement Instruments

• Keysight Technologies (KEYS)
• Anritsu (ANIRY)
• Mirion Technologies (MIR)

All 174 companies · What moved this quarter · How the map is built