Key Points
- It not only topped analyst estimates for its first quarter, it crushed them with its second-quarter guidance, too. 
- Customers in the busy data center and defense sectors are driving the telecom equipment speicalist's double-digit growth. 
Viavi Solutions (NASDAQ: VIAV) stock was having a Thursday to remember. Following the release of its latest set of quarterly earnings, the telecom equipment specialist's shares were taken for a 23% ride skyward, as of late-session trading. Many other stocks were in the red, as the bellwether S&P 500 index was dipping by 0.6% then.
Strong demand was the driver
Viavi, formerly known as JDS Uniphase, unveiled its figures for the fiscal first quarter of 2026, ended Sept. 27, just after market close on Wednesday. Prominent among the numbers was revenue, which at $290.5 million was a sturdy 26% higher year over year. 
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Further down the profit and loss statement, the company's net income not according to generally accepted accounting principles (GAAP) nearly doubled over that one-year span, ringing in at just over $47 million ($0.15 per share) from the first-quarter 2025 profit of almost $24 million. 
With that performance, Viavi notched a double beat on the consensus analyst estimates. These predicted the company would earn less than $276 million in revenue, and book a non-GAAP (adjusted) net profit of $0.13.
In its earnings release, Viavi said those robust growth numbers were mainly the result of heavy demand from data center and aerospace/defense clients. 
Good guidance given
Viavi also proffered estimates-topping guidance for its current second quarter. The company expects to earn net revenue of $360 million to $370 million, with adjusted earnings per share coming in at $0.18 to $0.20. Collectively, analysts are modeling only $302 million and $0.15 per share, respectively.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.