Viavi Solutions (VIAV)
NASDAQ:VIAV
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Viavi Solutions
(NASDAQ:VIAV)
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Rating:63Neutral
Price Target:
$43.00
▲(9.53% Upside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by strong technical momentum and a constructive earnings call (beats and upbeat sequential guidance). This is tempered by mixed financial fundamentals (recent net loss and higher leverage) and weak valuation signals due to a negative P/E and no dividend yield data.
Positive Factors
Revenue re-acceleration and end-market momentum
Sustained double-digit revenue re-acceleration, driven by data center demand and recent product-line acquisitions, signals durable market traction. This improves scale and recurring software/service opportunities, supporting steady top-line expansion and stronger negotiating leverage with large telco and OEM customers.
Negative Factors
Rising leverage and higher debt load
Material increase in leverage reduces balance-sheet flexibility and raises interest and refinancing exposure. Higher debt levels constrain strategic options, increase sensitivity to margin swings, and heighten execution risk if revenue or cash conversion deteriorates during cyclical telecom capex slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue re-acceleration and end-market momentum
Sustained double-digit revenue re-acceleration, driven by data center demand and recent product-line acquisitions, signals durable market traction. This improves scale and recurring software/service opportunities, supporting steady top-line expansion and stronger negotiating leverage with large telco and OEM customers.
Read all positive factors
Viavi Solutions (VIAV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.08B
Dividend YieldN/A
Average Volume (3M)5.81M
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth15.60%
EPS GrowthN/A
CountryUS
Employees3,600
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.22
Shares Outstanding231,389,340
10 Day Avg. Volume5,375,234
30 Day Avg. Volume5,806,407
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)2.85
Price to Sales (P/S)2.05
P/FCF Ratio35.89
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue7.76
Enterprise Value/Gross Profit13.92
Enterprise Value/Ebitda106.15
Forecast
1Y Price Target
$30.56Price Target Upside-22.16% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.84
Revenue Forecast (FY)$1.46B
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 ...
How the Company Makes Money
Viavi makes money primarily by selling hardware, software, and services that help customers test, validate, install, and maintain communications networks and optical systems.
1) Network Enablement (test, measurement, assurance, and monitoring)
- ...
Viavi Solutions Key Performance Indicators (KPIs)
Viavi Solutions Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented strong financial outperformance for the quarter with robust revenue growth (+36.4% YoY), margin expansion, EPS beats, and clear momentum in high-growth end markets (data center and aerospace & defense). Management provided constructive Q3 guidance and highlighted cash strength and active debt management. Near-term negatives include a modest shortfall in Spirent timing, one-time restructuring charges (~$32M) with ~5% workforce reduction, share dilution from convertible exchanges (and a higher expected share count), slight margin pressure in parts of the business, and a small decline in operating cash flow. On balance, the positives around top-line strength, margin improvement, segment momentum, and disciplined capital allocation outweigh the lowlights.Positive Updates
Revenue Beat and Strong Growth
Net revenue of $369.3M in Q2, at the high end of guidance ($360M–$370M); up 23.5% sequentially and up 36.4% year-over-year.
Negative Updates
Spirent Product Line Revenue Slightly Below Expectations
Spirent-related revenue of $43M came in below the company's expectation of $45M–$55M due to timing of certain opportunities; timing delays may push some government and other orders into Q3.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and Strong Growth
Net revenue of $369.3M in Q2, at the high end of guidance ($360M–$370M); up 23.5% sequentially and up 36.4% year-over-year.
Read all positive updates
Company Guidance
Viavi guided that fiscal Q3 revenue should be up sequentially, with total revenue of $386–$400 million, NSE revenue of $304–$316 million and OSP revenue of $82–$84 million; the Q3 guide includes a full 13 weeks of Spirent product lines versus 10 weeks in the prior quarter. They expect Viavi operating margin of 19.7% ±50 bps (≈19.2%–20.2%) and NSE operating margin of 15.5% ±50 bps (≈15.0%–16.0%) (OSB margin was not specified), other income/expense to be a net expense of ~$12.5 million, fully diluted share count around 245 million, and an expected Inertia Labs earn‑out payment of about $75 million during the quarter.Viavi Solutions Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
47
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.24B | 1.08B | 1.00B | 1.11B | 1.29B | 1.20B |
| Gross Profit | 693.30M | 616.30M | 569.60M | 630.10M | 763.80M | 681.10M |
| EBITDA | 90.90M | 131.30M | 101.20M | 157.30M | 163.80M | 247.80M |
| Net Income | -41.70M | 34.80M | -25.80M | 25.50M | 15.50M | 67.50M |
Balance Sheet | ||||||
| Total Assets | 2.78B | 1.99B | 1.74B | 1.85B | 1.83B | 1.96B |
| Cash, Cash Equivalents and Short-Term Investments | 767.40M | 425.30M | 491.20M | 521.10M | 561.30M | 699.40M |
| Total Debt | 1.33B | 692.30M | 687.20M | 781.00M | 744.50M | 739.20M |
| Total Liabilities | 1.94B | 1.21B | 1.05B | 1.16B | 1.16B | 1.20B |
| Stockholders Equity | 834.30M | 780.20M | 681.60M | 690.80M | 671.70M | 763.90M |
Cash Flow | ||||||
| Free Cash Flow | 78.70M | 62.00M | 96.90M | 63.00M | 105.60M | 191.20M |
| Operating Cash Flow | 105.10M | 89.80M | 116.40M | 114.10M | 178.10M | 243.30M |
| Investing Cash Flow | -525.20M | -128.40M | -21.60M | -127.10M | -71.00M | -48.70M |
| Financing Cash Flow | 678.90M | -23.60M | -125.70M | -50.00M | -210.40M | -58.80M |
Viavi Solutions Technical Analysis
Positive
39.26
Price Trends
31.89
Positive
25.22
Positive
18.77
Positive
Market Momentum
2.83
Negative
59.18
Neutral
71.18
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 39.26 is above the 20-day moving average (MA) of 36.66, above the 50-day MA of 31.89, and above the 200-day MA of 18.77, indicating a bullish trend. The MACD of 2.83 indicates Negative momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 71.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIAV.
Viavi Solutions Risk Analysis
Viavi Solutions disclosed 32 risk factors in its most recent earnings report. Viavi Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Viavi Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $58.83B | 88.82 | 27.64% | ― | 33.62% | ― | |
63 Neutral | $9.08B | -21.27 | -5.44% | ― | 15.60% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $8.14B | 44.93 | -7.45% | ― | 1.23% | -31.80% | |
54 Neutral | $2.33B | 70.53 | 12.12% | ― | 14.31% | ― | |
52 Neutral | $3.28B | -469.76 | -5.77% | ― | 4.24% | -141.83% |
* Technology Sector Average
VIAV
Viavi Solutions
39.26
29.40
298.17%
EXTR
Extreme Networks
17.35
5.97
52.46%
VSAT
ViaSat
59.92
51.43
605.77%
LITE
Lumentum Holdings
824.01
772.01
1484.63%
PI
IMPINJ
108.46
39.79
57.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.