Viavi Solutions (VIAV) AI Stock Analysis

• Market Cap: $3.83B
• Dividend Yield: N/A
• Average Volume (3M): 3.78M
• Price to Earnings (P/E): 264.8
• Beta (1Y): 1.18
• Revenue Growth: 15.60%
• EPS Growth: N/A
• Country: US
• Employees: 3,600
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.15
• Shares Outstanding: 223,198,850
• 10 Day Avg. Volume: 4,446,854
• 30 Day Avg. Volume: 3,779,718
• 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: 0.79
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 4.65
• Enterprise Value/Ebitda: 24.02
• 1Y Price Target: $19.33
• Price Target Upside: 11.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.67
• Revenue Forecast (FY): $1.19B

• Rating: 71 Outperform
• Price Target: $20.50 ▲(17.82% Upside)

Viavi Solutions' overall stock score is driven by strong technical momentum and positive corporate events, particularly the strategic acquisition of Spirent Communications. While financial performance shows growth potential, high valuation and profitability challenges temper the score.

Positive Factors

Strategic Acquisition

The acquisition of Spirent's business lines is expected to enhance Viavi's Network Service Enablement revenue and strengthen its market position, providing a durable competitive advantage and expanding product offerings in network testing and security.

Revenue Growth

Strong year-over-year revenue growth demonstrates Viavi's ability to expand its market reach and product adoption, indicating a positive trend in business performance and potential for sustained growth.

Quantum Security Partnership

The partnership with QNu Labs to develop quantum security technologies positions Viavi at the forefront of innovation in secure communications, potentially opening new markets and enhancing long-term competitive positioning.

Negative Factors

High Leverage

High leverage could pose financial risks and limit flexibility in operations, potentially impacting Viavi's ability to invest in growth opportunities and manage economic downturns effectively.

OSP Segment Challenges

Challenges in the Optical Security and Performance Products segment, including declining margins, suggest potential difficulties in maintaining profitability and competitiveness in this business area.

Soft Wireless Demand

Persistent weak demand for wireless products could hinder revenue growth and affect Viavi's ability to capitalize on opportunities in the wireless market, impacting long-term business prospects.

Viavi Solutions Business Overview & Revenue Model

Company Description

Viavi Solutions Inc. (VIAV) is a global provider of network test, monitoring, and assurance solutions that enable network operators, service providers, and enterprises to optimize performance and enhance user experiences in their communications networks. The company operates in two primary sectors: Network and Service Enablement, which encompasses tools for managing and optimizing network performance, and Optical Security and Performance Products, which focuses on products for the optical communications market. Core offerings include test and measurement solutions for both wired and wireless networks, as well as cybersecurity and performance-enhancing tools.

How the Company Makes Money

Viavi Solutions generates revenue primarily through the sale of its test and measurement equipment and related services. The key revenue streams include hardware sales from network performance monitoring devices, software licenses for network management applications, and recurring revenue from support and maintenance agreements. Additionally, Viavi leverages partnerships with major telecommunications operators and service providers to integrate its solutions into their networks, enhancing customer loyalty and driving long-term contracts. The company also benefits from the growing demand for high-speed networks and cloud services, as businesses increasingly invest in advanced technologies to support digital transformation.

Viavi Solutions Financial Statement Overview

Summary

Viavi Solutions presents a mixed financial picture. While revenue and cash flow growth are positive, profitability margins and leverage ratios indicate areas for improvement. The company should focus on enhancing operational efficiency and managing debt levels to strengthen its financial position.

Income Statement

Viavi Solutions shows a moderate revenue growth rate of 5.62% TTM, indicating a recovery from previous declines. The gross profit margin remains strong at 57.11%, but the net profit margin is low at 1.33%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins are also modest, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio of 1.09 TTM indicates a relatively high leverage, which could pose risks if not managed carefully. The return on equity is low at 2.09%, suggesting limited profitability from shareholders' investments. However, the equity ratio of 34.76% shows a reasonable level of equity financing.

Cash Flow

Viavi Solutions demonstrates strong free cash flow growth of 26.29% TTM, highlighting improved cash generation capabilities. The operating cash flow to net income ratio of 1.80 indicates efficient cash conversion from earnings. However, the free cash flow to net income ratio of 0.69 suggests some constraints in translating profits into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.15B	1.08B	1.00B	1.11B	1.29B	1.20B
Gross Profit	648.80M	616.30M	569.60M	630.10M	763.80M	681.10M
EBITDA	125.70M	131.30M	101.20M	157.30M	163.80M	247.80M
Net Income	15.20M	34.80M	-25.80M	25.50M	15.50M	67.50M
Balance Sheet
Total Assets	2.08B	1.99B	1.74B	1.85B	1.83B	1.96B
Cash, Cash Equivalents and Short-Term Investments	545.60M	425.30M	491.20M	521.10M	561.30M	699.40M
Total Debt	791.60M	692.30M	687.20M	781.00M	744.50M	739.20M
Total Liabilities	1.36B	1.21B	1.05B	1.16B	1.16B	1.20B
Stockholders Equity	723.90M	780.20M	681.60M	690.80M	671.70M	763.90M
Cash Flow
Free Cash Flow	78.30M	62.00M	96.90M	63.00M	105.60M	191.20M
Operating Cash Flow	107.30M	89.80M	116.40M	114.10M	178.10M	243.30M
Investing Cash Flow	-125.20M	-128.40M	-21.60M	-127.10M	-71.00M	-48.70M
Financing Cash Flow	95.10M	-23.60M	-125.70M	-50.00M	-210.40M	-58.80M

Viavi Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIAV, the sentiment is Neutral. The current price of 17.4 is below the 20-day moving average (MA) of 17.72, above the 50-day MA of 16.24, and above the 200-day MA of 11.96, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 50.19 is Neutral, neither overbought nor oversold. The STOCH value of 12.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VIAV.

Viavi Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIAV	71 Outperform	$3.83B	264.84	2.13%	―	15.60%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LITE	61 Neutral	$22.71B	225.37	13.42%	―	33.62%	―
COMM	60 Neutral	$3.94B	-142.23	―	―	9.86%	99.11%
EXTR	59 Neutral	$2.23B	264.57	17.08%	―	14.31%	―
VSAT	56 Neutral	$4.35B	-8.09	-11.04%	―	1.23%	-31.80%
PI	56 Neutral	$5.01B	-391.99	-7.49%	―	4.24%	-141.83%

Viavi Solutions Corporate Events

Viavi Solutions Announces Convertible Notes Exchange Agreement

On December 15, 2025, Viavi Solutions Inc. announced that it entered into agreements with certain institutional investors to exchange $103.463 million of its 1.625% Convertible Senior Notes due 2026 for 7,871,043 shares of common stock at $17.88 per share. This exchange, expected to close by December 22, 2025, will not generate cash proceeds but will aid in prepaying $100 million of a $600 million Term Loan Credit Facility initiated in October 2025, leaving $49.037 million of the 2026 Notes outstanding.

Viavi Solutions Approves Key Proposals at Annual Meeting

On November 12, 2025, Viavi Solutions Inc. held its Annual Meeting of Stockholders, where significant proposals were approved, including amendments to the company’s Certificate of Incorporation and the election of nine directors. The meeting saw a high participation rate, with 92% of the total outstanding shares represented, and included decisions on executive compensation and the appointment of PricewaterhouseCoopers LLP as the independent auditor for fiscal year 2026.

Viavi Solutions Completes Acquisition of Spirent Communications

On October 16, 2025, Viavi Solutions Inc. completed its acquisition of Spirent Communications plc’s high-speed ethernet, network security, and channel emulation testing business from Keysight Technologies, Inc. The acquisition, valued at $425 million, is expected to enhance Viavi’s Network Service Enablement revenue by approximately $180 million in the first year and be accretive to non-GAAP EPS. To finance the acquisition, Viavi entered into a $600 million term loan credit agreement with Wells Fargo, with the loan maturing in 2032. This strategic move is anticipated to expand Viavi’s product offerings and strengthen its position in the network testing and security industry.