Viavi Solutions (VIAV) AI Stock Analysis

• Market Cap: $2.73B
• Dividend Yield: N/A
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 79.5
• Beta (1Y): 1.13
• Revenue Growth: 8.39%
• EPS Growth: N/A
• Country: US
• Employees: 3,600
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.13
• Shares Outstanding: 223,245,910
• 10 Day Avg. Volume: 2,334,757
• 30 Day Avg. Volume: 3,048,184
• PEG Ratio: -0.27
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 35.89
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 4.08
• Enterprise Value/Ebitda: 22.52
• 1Y Price Target: $13.75
• Price Target Upside: 12.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 65 Neutral
• Price Target: $12.50 ▲(2.38% Upside)

Viavi Solutions' overall stock score is driven by strong earnings performance and positive technical momentum. However, high valuation and cash flow challenges weigh on the score. The strategic board expansion is a positive development, but profitability and liquidity improvements are needed for a higher score.

Positive Factors

Revenue Growth

Viavi's strong revenue growth, particularly in key segments, highlights its ability to capitalize on market demand, supporting long-term business expansion.

Board Expansion

The strategic board expansion with experienced directors enhances governance and operational capabilities, potentially improving strategic decision-making.

Data Center Ecosystem Expansion

Growing demand in the data center ecosystem positions Viavi to benefit from structural industry trends, supporting sustained revenue growth.

Negative Factors

Cash Flow Challenges

Decreased operating cash flow and liquidity issues may limit Viavi's ability to invest in growth opportunities and meet financial obligations.

Profitability Concerns

Low profitability metrics suggest challenges in cost management and operational efficiency, potentially impacting long-term financial health.

Debt Levels

While improved, the debt-to-equity ratio still poses risks if debt levels increase, potentially affecting financial stability and flexibility.

Viavi Solutions Business Overview & Revenue Model

Company Description

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, original equipment manufacturers, government, and avionics customers worldwide. The company operates through three segments: Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP) segments. The NE segment offers testing solutions that access the network to perform build-out and maintenance tasks. This segment provides solutions that include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks; and instrumentation for communication and safety. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services. The SE segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data. Its solutions include instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. The OSP segment offers optical products for anti-counterfeiting, consumer and industrial, government, automotive, and industrial markets. The company was formerly known as JDS Uniphase Corporation and changed its name to Viavi Solutions Inc. in August 2015. Viavi Solutions Inc. was founded in 1923 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

Viavi Solutions generates revenue primarily through the sale of its test and measurement equipment, software, and services. The company operates on a multi-faceted revenue model that includes direct sales to telecommunications companies, enterprises, and government clients, as well as recurring revenue through software subscriptions and support services. Key revenue streams include products for network performance monitoring, optical testing, and cybersecurity solutions. Viavi also benefits from strategic partnerships with major telecommunications providers and technology companies, enhancing its market reach and enabling the integration of its products into broader solutions. Additionally, the growing demand for 5G technology and increased network complexity are significant factors contributing to Viavi's earnings, as they require advanced testing and monitoring solutions.

Viavi Solutions Financial Statement Overview

Summary

Viavi Solutions demonstrates moderate financial health with stable revenue growth and efficient production processes. However, profitability remains a concern with low net profit margins and return on equity. The balance sheet shows improved leverage, but cash flow challenges could impact future financial flexibility.

Income Statement

Viavi Solutions shows a modest revenue growth rate of 3.68% in the latest year, recovering from a decline in the previous period. The gross profit margin remains strong at 56.84%, indicating efficient production processes. However, the net profit margin is relatively low at 3.21%, suggesting challenges in controlling non-operational costs. The EBIT and EBITDA margins are moderate, reflecting stable operational efficiency but room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.82, indicating a more balanced capital structure compared to previous years. Return on equity is low at 4.46%, suggesting limited returns for shareholders. The equity ratio stands at 39.12%, showing a reasonable level of financial stability but highlighting potential risks if debt levels increase.

Cash Flow

Operating cash flow has decreased, with a low operating cash flow to net income ratio of 0.15, indicating potential liquidity issues. Free cash flow growth is negative, reflecting challenges in generating cash from operations. The free cash flow to net income ratio is 0.69, suggesting that while the company is generating cash, it may not be sufficient to cover all financial obligations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.08B	1.08B	1.00B	1.11B	1.29B	1.20B
Gross Profit	621.10M	616.30M	575.90M	638.80M	773.50M	714.40M
EBITDA	112.50M	131.30M	101.20M	154.10M	163.80M	247.80M
Net Income	34.80M	34.80M	-25.80M	25.50M	15.50M	67.50M
Balance Sheet
Total Assets	1.99B	1.99B	1.74B	1.85B	1.83B	1.96B
Cash, Cash Equivalents and Short-Term Investments	425.30M	429.00M	491.20M	521.10M	561.30M	699.40M
Total Debt	642.50M	642.50M	687.20M	781.00M	744.50M	739.20M
Total Liabilities	1.21B	1.21B	1.05B	1.16B	1.16B	1.19B
Stockholders Equity	780.20M	780.20M	681.60M	690.80M	671.70M	763.90M
Cash Flow
Free Cash Flow	62.00M	62.00M	96.90M	63.00M	105.60M	191.20M
Operating Cash Flow	89.80M	89.80M	116.40M	114.10M	178.10M	243.30M
Investing Cash Flow	-128.40M	-128.40M	-21.60M	-127.10M	-71.00M	-48.70M
Financing Cash Flow	-23.60M	-23.60M	-125.70M	-50.00M	-210.40M	-58.80M

Viavi Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIAV, the sentiment is Positive. The current price of 12.21 is above the 20-day moving average (MA) of 11.99, above the 50-day MA of 11.11, and above the 200-day MA of 10.56, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 64.93 is Neutral, neither overbought nor oversold. The STOCH value of 47.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIAV.

Viavi Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PI	68 Neutral	$5.10B	24,368.06	0.34%	―	13.96%	-96.21%
EXTR	67 Neutral	$2.69B	-350.26	-11.39%	―	2.05%	91.37%
VIAV	65 Neutral	$2.73B	79.49	4.76%	―	8.39%	―
LITE	65 Neutral	$11.24B	681.72	―	―	21.03%	―
VSAT	60 Neutral	$3.88B	-6.26	-12.63%	―	-1.43%	43.14%
COMM	58 Neutral	$3.41B	-23.42	-69.12%	―	-11.03%	91.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Viavi Solutions Corporate Events

Viavi Solutions Issues $250M Convertible Notes

On August 20, 2025, Viavi Solutions Inc. issued $250 million in 0.625% Senior Convertible Notes due 2031, as part of private transactions. The company exchanged $100.9 million of these new notes for $97.5 million of its 2026 notes and sold $149.1 million for cash to institutional investors. The proceeds are intended to repay part of the 2026 notes upon maturity, and the new notes will mature on March 1, 2031, with various conversion and redemption options available to holders.

Viavi Solutions Issues $250M Convertible Notes

On August 13, 2025, Viavi Solutions Inc. entered into agreements with certain holders of its 1.625% Senior Convertible Notes due 2026 and new investors to issue $250 million of 0.625% Senior Convertible Notes due 2031. This transaction includes exchanging approximately $100.9 million of new notes for $97.5 million of existing notes and issuing $149.1 million of new notes for cash, aimed at institutional accredited investors and qualified institutional buyers under exemptions from the Securities Act of 1933.

Viavi Solutions Announces $250M Convertible Notes Issuance

On August 13, 2025, Viavi Solutions announced its entry into privately negotiated exchange and subscription agreements to issue $250 million in principal amount of 0.625% Senior Convertible Notes due 2031. The transactions involve exchanging $100.9 million of new notes for $97.5 million of existing 2026 notes and issuing $149.1 million of new notes for cash. The company plans to use the proceeds to repurchase shares and repay a portion of the 2026 notes. These transactions, expected to close around August 20, 2025, could impact the market price of Viavi’s common stock and notes.

Viavi Solutions Expands Board with New Appointments

Viavi Solutions Inc. has appointed Richard Burns and Eugenia Corrales as independent directors, expanding its Board of Directors to ten members. This strategic move, effective immediately as of July 24, 2025, brings extensive experience in engineering, telecommunications, and technology to the company, potentially enhancing its industry positioning and operational capabilities.