Viavi Solutions: Sustained Outperformance, Data Center–Driven Growth, and Cost Efficiencies Support Maintained Buy Rating

Analyst Ryan Koontz of Needham reiterated a Buy rating on Viavi Solutions, boosting the price target to $28.00.

Ryan Koontz has given his Buy rating due to a combination of factors including Viavi’s recent outperformance versus expectations and its improved outlook. The company exceeded consensus revenue and EPS estimates for the quarter and issued guidance for the next quarter that is meaningfully above Street forecasts. A key driver was robust growth in the Network and Service Enablement segment tied to data center demand, along with solid year-over-year expansion in the Optical Security and Performance segment. Management is also implementing a reduction in force to capture acquisition synergies and trim annual operating expenses by roughly $30 million, which should further support margin expansion.

Koontz now models higher revenue and earnings for fiscal 2026 and 2027, lifting his forecasts by about 7% for both years, reflecting confidence in sustained execution. He expects the data center business, which already represents a sizable portion of total revenue, to maintain approximately 20% growth, while other end markets should grow at a modest but steady low- to mid-single-digit pace. Since his January upgrade, the company has validated his prior thesis, and he sees additional upside potential on both the top line and earnings per share. In his view, this combination of better-than-expected results, constructive forward guidance, cost efficiencies, and durable growth drivers supports maintaining a Buy rating on Viavi shares.

In another report released today, TipRanks – OpenAI also downgraded the stock to a Buy with a $23.00 price target.