Viavi Solutions Inc (VIAV)

Operating profit margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Operating income	US$ in thousands	58,200	20,800	82,400	185,000	142,200
Revenue	US$ in thousands	1,084,300	1,000,400	1,106,100	1,292,400	1,198,900
Operating profit margin		5.37%	2.08%	7.45%	14.31%	11.86%

June 30, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $58,200K ÷ $1,084,300K
= 5.37%

The operating profit margin of Viavi Solutions Inc. demonstrates significant fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the margin stood at 11.86%, reflecting a relatively healthy operating profitability. This margin increased notably to 14.31% by June 30, 2022, indicating an improvement in operational efficiency or higher margin contributions from the company's core activities during that year.

However, a substantial decline occurred in the subsequent year, with the operating profit margin decreasing sharply to 7.45% as of June 30, 2023. This decline may suggest increased operating expenses, margin pressures, or other operational challenges impacting profitability.

The downward trend intensified in the following year, with the margin contracting further to just 2.08% as of June 30, 2024, signaling a significant deterioration in operating performance and profitability. This erosion of margin could be attributable to a range of factors, including heightened competition, cost increases, or unfavorable market conditions.

Despite the severe dip in 2024, there is a modest recovery projected in the subsequent year, with the operating profit margin rising to 5.37% as of June 30, 2025. This increase indicates some operational improvements or cost management efforts, although the margin remains below earlier peak levels.

Overall, the trend in Viavi Solutions Inc.'s operating profit margin reveals periods of growth followed by substantial declines, illustrating volatile operating profitability over the evaluated time span. The recent resurgence in margin may reflect attempts at operational restructuring or market adjustments, but the overall pattern suggests recent challenges in maintaining consistent margin levels.