Shares of Viavi Solutions Inc. (NASDAQ: VIAV) soared over 8% in premarket trading on Thursday, following the company's fiscal first-quarter 2025 earnings report that highlighted several positive developments and growth drivers despite persistent macroeconomic challenges.

While Viavi's Q1 revenue of $238.2 million fell 3.9% year-over-year and operating margin declined to 10%, the company reported stronger-than-expected demand in its Optical Security and Performance (OSP) segment, driven by anti-counterfeiting and 3D sensing products. Moreover, Viavi expressed optimism about signs of stabilization and recovery in its Network and Service Enablement (NSE) segment, with expectations for stronger performance in the second half of fiscal 2025.

Notably, Viavi launched the Valor Lab in Chandler, Arizona, enhancing its capabilities in testing for the OpenRAN ecosystem, a key growth area. The company also introduced the industry's first 1.6 terabits per second high-speed Ethernet testing solution for AI workloads, positioning itself as a leader in the data center and high-performance computing markets.