Viavi Solutions Inc (VIAV)
NASDAQ:VIAV
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Viavi Solutions
(NASDAQ:VIAV)
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Rating:54Neutral
Price Target:
$49.00
▲(11.01% Upside)
Action:Reiterated
Date:05/22/26
VIAV scores mid-range: financials are transitional with strong revenue and solid gross margins but weakened TTM profitability, higher leverage, and softer free-cash-flow trends. Offsetting this, the earnings call showed clear operating momentum and improving guidance, while technicals are mixed-to-constructive. Valuation is the largest constraint due to the extremely high P/E and no dividend support, with the recent equity raise helping deleveraging but adding dilution.
Positive Factors
Diversified hardware, software & services mix
Viavi's blended model of instruments, software/subscriptions and services creates multiple revenue streams and recurring revenue from installed bases. This reduces reliance on single capex cycles, improves revenue visibility and supports durable margin and cash generation over the medium term.
Negative Factors
Elevated leverage and rising debt
materially higher debt and a debt-to-equity ~1.28 reduce financial flexibility and increase interest and refinancing exposure. Elevated leverage constrains capital allocation choices, limits ability to invest opportunistically, and raises vulnerability to slower revenue or margin pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified hardware, software & services mix
Viavi's blended model of instruments, software/subscriptions and services creates multiple revenue streams and recurring revenue from installed bases. This reduces reliance on single capex cycles, improves revenue visibility and supports durable margin and cash generation over the medium term.
Read all positive factors
Viavi Solutions Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures profitability after operating costs for each segment, indicating which parts of the business are actually earning money versus those that require investment or are loss-making. Highlights where cost control, scale, or pricing power are strong and which segments are likely to fund future growth or drag on overall results.
Measures profitability after operating costs for each segment, indicating which parts of the business are actually earning money versus those that require investment or are loss-making. Highlights where cost control, scale, or pricing power are strong and which segments are likely to fund future growth or drag on overall results.
Data provided by:
The Fly
The FlyViavi Solutions (VIAV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.00B
Dividend YieldN/A
Average Volume (3M)6.71M
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth30.59%
EPS Growth-1171.00%
CountryUS
Employees3,600
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.24
Shares Outstanding245,018,980
10 Day Avg. Volume6,278,938
30 Day Avg. Volume6,713,900
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 Cap0.96
Enterprise Value/Revenue9.17
Enterprise Value/Gross Profit16.46
Enterprise Value/Ebitda60.48
Forecast
1Y Price Target
$64.63Price Target Upside46.41% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.94
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 Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a strong operational beat and clear momentum: revenue and EPS exceeded guidance, margins expanded materially, NSE delivered very high year-over-year growth (driven by Spirent and data center demand), and management provided upbeat sequential guidance. Offsetting items include a substantial cash balance decline driven by strategic earn-outs and debt prepayments, negative operating cash flow for the quarter, near-term dilution from convertible conversions, and some product-mix pressure on OSP gross margins plus a weak wireless/service-provider market. On balance, the company demonstrated robust demand, margin leverage and a constructive outlook while taking deliberate debt-reduction and investment actions; these positives outweigh the near-term cash and dilution headwinds.Positive Updates
Revenue Beat and Strong Growth
Q3 net revenue $406.8M, above the high end of guidance ($386M-$400M). Revenue +10.2% sequentially and +42.8% year-over-year.
Negative Updates
Material Cash Decline
Total cash and short-term investments decreased from $772.1M to $508M quarter-over-quarter, a decline of approximately 34.2%, driven by earn-out payments, convertible note payoff, and Term Loan B prepayment.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Beat and Strong Growth
Q3 net revenue $406.8M, above the high end of guidance ($386M-$400M). Revenue +10.2% sequentially and +42.8% year-over-year.
Read all positive updates
Company Guidance
For Q4 FY2026 Viavi guided revenue of $427–$437 million (sequentially higher), with NSE revenue of $340–$348 million and OSP revenue of $87–$89 million; consolidated operating margin of 22.7% ±50 bps (22.2%–23.2%), NSE operating margin 18.7% ±50 bps (18.2%–19.2%), and OSP operating margin 38.4% ±40 bps (38.0%–38.8%); EPS of $0.29–$0.31; tax expense of roughly $10.0 million ±$0.5 million ($9.5–$10.5M); other income/expense net expense ≈ $12M; and an expected fully diluted share count of ~256 million — revenue is expected to rise quarter-over-quarter driven by continued strength across NSE (data center, aerospace & defense and seasonally stronger service provider spend) and across OSP product lines.Viavi Solutions Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
48
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.37B | 1.08B | 1.00B | 1.11B | 1.29B | 1.20B |
| Gross Profit | 760.50M | 616.30M | 569.60M | 630.10M | 763.80M | 681.10M |
| EBITDA | 207.00M | 133.60M | 101.20M | 157.30M | 163.80M | 247.80M |
| Net Income | -55.10M | 34.80M | -25.80M | 25.50M | 15.50M | 67.50M |
Balance Sheet | ||||||
| Total Assets | 2.53B | 1.99B | 1.74B | 1.85B | 1.83B | 1.96B |
| Cash, Cash Equivalents and Short-Term Investments | 500.80M | 425.30M | 491.20M | 521.10M | 561.30M | 699.40M |
| Total Debt | 1.14B | 692.30M | 687.20M | 781.00M | 744.50M | 739.20M |
| Total Liabilities | 1.68B | 1.21B | 1.05B | 1.16B | 1.16B | 1.20B |
| Stockholders Equity | 846.50M | 780.20M | 681.60M | 690.80M | 671.70M | 763.90M |
Cash Flow | ||||||
| Free Cash Flow | 45.50M | 62.00M | 96.90M | 63.00M | 105.60M | 191.20M |
| Operating Cash Flow | 71.00M | 89.80M | 116.40M | 114.10M | 178.10M | 243.30M |
| Investing Cash Flow | -405.00M | -128.40M | -21.60M | -127.10M | -71.00M | -48.70M |
| Financing Cash Flow | 449.10M | -23.60M | -125.70M | -50.00M | -210.40M | -58.80M |
Viavi Solutions Technical Analysis
Neutral
44.14
Price Trends
44.32
Positive
34.71
Positive
24.65
Positive
Market Momentum
1.64
Positive
49.13
Neutral
65.12
Neutral
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 44.14 is below the 20-day moving average (MA) of 51.85, below the 50-day MA of 44.32, and above the 200-day MA of 24.65, indicating a neutral trend. The MACD of 1.64 indicates Positive momentum. The RSI at 49.13 is Neutral, neither overbought nor oversold. The STOCH value of 65.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $70.20B | 139.88 | 30.68% | ― | 68.98% | ― | |
66 Neutral | $3.49B | 214.09 | 21.07% | ― | 14.90% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $11.62B | 229.78 | 1.07% | ― | 2.07% | 20.79% | |
57 Neutral | $4.81B | -171.83 | -13.90% | ― | -0.69% | -3584.62% | |
54 Neutral | $13.00B | -204.17 | -6.92% | ― | 30.59% | -1171.00% |
* Technology Sector Average
VIAV
Viavi Solutions
48.49
39.33
429.37%
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PI
IMPINJ
156.88
41.32
35.76%
Viavi Solutions Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Viavi Solutions Completes Equity Offering to Reduce Debt
Positive
May 21, 2026
On May 19, 2026, Viavi Solutions Inc. entered into an underwriting agreement with Stifel, Nicolaus Company and Needham Company for a public offering of 11,111,111 shares of common stock at $45.00 per share, with underwriters exercising in full a...
Business Operations and StrategyExecutive/Board Changes
Viavi Solutions updates board committees and audit leadership
Positive
May 18, 2026
On May 12, 2026, Viavi Solutions Inc. announced a planned rotation in the leadership of its Audit Committee as part of board refreshment and succession planning, with independent director Joanne Solomon appointed Audit Committee chair and former c...
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.