Education
About Us
Working with TipRanks
Follow Us
Viavi Solutions (VIAV)
NASDAQ:VIAV
Top Page
Viavi Solutions
(NASDAQ:VIAV)
Rating:58Neutral
Price Target:
$10.00
▼(-14.24% Downside)
Positive Factors
Acquisition
The potential acquisition gives Viavi significant presence in the critical channel emulation market, providing growth opportunities in key technology testing markets and potential accretion.
Financial Performance
Viavi Solutions Inc surpassed consensus revenue and earnings estimates and provided guidance significantly above expectations.
Revenue Growth
The company's revenue saw significant year-over-year growth in both its NSE and OSP segments.
Negative Factors
Market Volatility
The business remains volatile with high exposure to service providers, keeping the analyst's recommendation underweight on a relative basis.
Order Delays
There is a new concern that re-pricing with tariff premiums could lead to order delays, impacting future quarter guidance.
Tariffs Impact
Key downside risks are tariffs materially delaying a recovery in carrier spend or currency business facing headwinds from fiscal changes.
Viavi Solutions (VIAV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.62B
Dividend YieldN/A
Average Volume (3M)3.39M
Price to Earnings (P/E)75.9
Beta (1Y)1.17
Revenue Growth8.39%
EPS GrowthN/A
CountryUS
Employees3,600
SectorTechnology
Sector Strength83
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.13
Shares Outstanding223,245,910
10 Day Avg. Volume3,533,977
30 Day Avg. Volume3,389,078
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue2.42
Enterprise Value/Gross Profit4.21
Enterprise Value/Ebitda28.24
Forecast
1Y Price Target
$13.50Price Target Upside15.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Viavi Solutions Business Overview & Revenue Model
Company DescriptionViavi Solutions Inc. is a global provider of network test, monitoring, and assurance solutions to communications service providers, enterprises, and network equipment manufacturers. The company operates primarily in two segments: Network Enablement (NE) and Optical Security and Performance Products (OSP). Viavi's core offerings include solutions for fiber optic testing, wireless network testing, and optical security features for banknotes.
How the Company Makes MoneyViavi Solutions generates revenue through the sale of its network test and measurement solutions and optical security products. In the Network Enablement segment, the company earns money by providing testing equipment and software solutions for network performance and service assurance. This includes fiber optic test instruments, wireless network test systems, and related software and services. In the Optical Security and Performance Products segment, Viavi earns revenue by supplying optical security technologies used in currency authentication and brand protection. Key factors contributing to its earnings include its extensive product portfolio, strong relationships with major telecom operators, and ongoing innovation in network testing and security technologies.
Viavi Solutions Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong revenue and EPS performance, with significant growth in the data center ecosystem and aerospace and defense segments. However, challenges such as decreased operating margin sequentially, continued weakness in wireless, and newly imposed tariffs were noted. Despite these issues, the positive aspects notably outweighed the negatives.Q4-2025 Updates
Positive Updates
Strong Revenue Growth
Net revenue for the fourth quarter was $290.5 million, at the high end of guidance, up 2% sequentially, and up 15.3% year-over-year. Full fiscal year revenue was $1.84 billion, up 8.4% year-over-year.
Operating and EPS Performance
Operating margin for the fourth fiscal quarter was 14.4%, at the high end of the guidance range, up 350 basis points year-over-year. EPS was $0.13, at the high end of guidance, up $0.05 year-over-year.
NSE Segment Growth
NSE revenue for Q4 was $209.1 million, above guidance, up 14.8% year-over-year, driven by demand from the data center ecosystem and aerospace and defense.
OSP Segment Performance
OSP revenue for Q4 was $81.4 million, above guidance, up 16.6% year-over-year, driven by strength in anticounterfeiting and other products.
Data Center Ecosystem Expansion
Strong demand from the data center ecosystem, with expectations for continued growth into fiscal '26.
Negative Updates
Decreased Operating Margin Sequentially
Operating margin decreased 230 basis points from the prior quarter.
Wireless Business Weakness
Continued weakness in wireless, with sluggish demand for infrastructure test equipment.
Tariff Impact
Some revenue was subject to newly imposed tariffs, impacting North American and Chinese sales, though mitigated.
Higher R&D Expenses
NSE operating margin was slightly lower due to fiscal year-end employee variable costs and higher R&D expenses.
Company Guidance
During the Viavi Solutions Fiscal Fourth Quarter and Full Year 2025 Earnings Call, several key metrics were highlighted in their guidance. Viavi reported Q4 net revenue of $290.5 million, which was at the high end of their guidance range of $278 million to $290 million, marking a 2% sequential increase and a 15.3% year-over-year rise. The operating margin for the quarter was 14.4%, also at the high end of the guidance range of 12.5% to 14.5%, although it decreased 230 basis points from the previous quarter but increased 350 basis points year-over-year. Earnings per share (EPS) for Q4 was $0.13, at the high end of the projected range of $0.10 to $0.13, despite a sequential decline of $0.02. For fiscal year 2025, Viavi's revenue reached $1.84 billion, up 8.4% year-over-year, driven by strong demand in the data center ecosystem and aerospace and defense sectors. Full-year operating margin was 14.2%, with an EPS of $0.47, up $0.14 from the prior year. Looking ahead to Q1 of fiscal 2026, Viavi expects revenue between $290 million and $298 million, an operating margin of 15% (plus or minus 40 basis points), and EPS between $0.13 and $0.14. The guidance does not incorporate financial performance from the acquisition of certain Spirent business lines, which is anticipated to close by the end of September.Viavi Solutions Financial Statement Overview
Summary
Viavi Solutions shows strong gross margins but faces challenges in net profitability and cash flow consistency. The balance sheet is stable, with a balanced capital structure, but improvements in revenue growth and cost management are necessary.Income Statement
Viavi Solutions has shown a mixed performance in its income statement. The gross profit margin for TTM (Trailing-Twelve-Months) is strong at 57.57%, indicating efficient production processes. However, the net profit margin is only 0.49%, which suggests high operating costs or other expenses. Revenue has decreased over the last few years, with a notable decline from 2022 to 2023. The EBIT margin for TTM is 4.87%, and the EBITDA margin is 8.58%, both lower than previous years, reflecting pressure on operational efficiency.65
Positive
Balance Sheet
The balance sheet shows moderate strength with a debt-to-equity ratio of 0.88, indicating a balanced capital structure. The return on equity (ROE) for TTM is 0.70%, which is low, suggesting limited profitability from shareholders' equity. However, the equity ratio is solid at 37.70%, highlighting a stable financial base with a fair proportion of assets funded by equity.70
Positive
Cash Flow
Cash flow analysis reveals some concerns. The operating cash flow to net income ratio is healthy, suggesting good cash conversion from operations. However, free cash flow growth has been inconsistent, and the free cash flow to net income ratio shows variability, indicating potential challenges in free cash generation relative to net income. These factors suggest a need for stronger cash management strategies.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.05B | 1.00B | 1.11B | 1.29B | 1.20B | 1.14B |
| Gross Profit | 601.90M | 575.90M | 638.80M | 773.50M | 714.40M | 665.30M |
| EBITDA | 89.70M | 101.20M | 154.10M | 163.80M | 247.80M | 199.80M |
| Net Income | 5.10M | -25.80M | 25.50M | 15.50M | 67.50M | 28.70M |
Balance Sheet | ||||||
| Total Assets | 1.93B | 1.74B | 1.85B | 1.83B | 1.96B | 1.78B |
| Cash, Cash Equivalents and Short-Term Investments | 396.80M | 491.20M | 521.10M | 561.30M | 699.40M | 540.50M |
| Total Debt | 691.30M | 687.20M | 781.00M | 744.50M | 739.20M | 603.70M |
| Total Liabilities | 1.20B | 1.05B | 1.16B | 1.16B | 1.19B | 1.06B |
| Stockholders Equity | 728.80M | 681.60M | 690.80M | 671.70M | 763.90M | 711.40M |
Cash Flow | ||||||
| Free Cash Flow | 66.10M | 96.90M | 63.00M | 105.60M | 191.20M | 103.70M |
| Operating Cash Flow | 92.20M | 116.40M | 114.10M | 178.10M | 243.30M | 135.60M |
| Investing Cash Flow | -135.10M | -21.60M | -127.10M | -71.00M | -48.70M | -29.80M |
| Financing Cash Flow | -33.90M | -125.70M | -50.00M | -210.40M | -58.80M | -71.70M |
Viavi Solutions Technical Analysis
Positive
11.66
Price Trends
10.53
Positive
10.04
Positive
10.41
Positive
Market Momentum
0.34
Negative
72.21
Negative
84.83
Negative
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 11.66 is above the 20-day moving average (MA) of 11.07, above the 50-day MA of 10.53, and above the 200-day MA of 10.41, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 72.21 is Negative, neither overbought nor oversold. The STOCH value of 84.83 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $5.47B | 26,129.17 | 0.42% | ― | 13.96% | -96.21% | |
67 Neutral | $2.97B | ― | -16.44% | ― | 2.05% | 91.37% | |
65 Neutral | $9.92B | 601.82 | 2.48% | ― | 21.03% | ― | |
61 Neutral | $35.52B | 8.84 | -11.06% | 1.87% | 8.55% | -8.14% | |
60 Neutral | $4.04B | ― | -12.48% | ― | -1.43% | 43.14% | |
58 Neutral | $2.62B | 75.91 | 4.76% | ― | 8.39% | ― | |
58 Neutral | $3.60B | ― | 17.08% | ― | -11.03% | 91.98% |
* Technology Sector Average
Performance Comparison
VIAV
Viavi Solutions
11.66
3.69
46.30%
EXTR
Extreme Networks
21.70
8.08
59.32%
VSAT
ViaSat
29.65
13.68
85.66%
COMM
CommScope Holding
16.02
11.53
256.79%
LITE
Lumentum Holdings
149.46
98.26
191.91%
PI
IMPINJ
191.02
18.74
10.88%
Viavi Solutions Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Viavi Solutions Expands Board with New Appointments
Positive
Jul 30, 2025
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.
The most recent analyst rating on (VIAV) stock is a Sell with a $9.50 price target. To see the full list of analyst forecasts on Viavi Solutions stock, see the VIAV Stock Forecast page.
Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Viavi Solutions Plans Term Loan for Acquisition
Positive
May 19, 2025
On May 20, 2025, Viavi Solutions Inc. plans to present to prospective lenders regarding a proposed term loan financing to support its acquisition of Spirent Communications plc’s high-speed ethernet and network security business lines. This move is part of Viavi’s strategy to expand its capabilities and market presence, with the financing also expected to support general corporate purposes.
The most recent analyst rating on (VIAV) stock is a Sell with a $9.50 price target. To see the full list of analyst forecasts on Viavi Solutions stock, see the VIAV Stock Forecast page.
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.