An optical transceiver configured to perform filtering of digital diagnostics prior to the filtered results being made accessible to a host computing system (hereinafter referred to simply as a “host”) that is communicatively coupled to the optical transceiver. The optical transceiver includes sensor(s) that measures analog operational parameter signals such as temperature and supply voltage. The analog signals are each converted to a plurality of digital samples by analog to digital converter(s). A processor executes microcode that causes the optical transceiver to perform filtering on the various samples. The optical transceiver may then make the filtered result accessible to the host.