Viavi Solutions (VIAV) AI Stock Analysis

• Market Cap: $8.18B
• Dividend Yield: N/A
• Average Volume (3M): 5.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 15.60%
• EPS Growth: N/A
• Country: US
• Employees: 3,600
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.22
• Shares Outstanding: 231,389,340
• 10 Day Avg. Volume: 4,662,264
• 30 Day Avg. Volume: 5,131,302
• 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: 1.01
• Enterprise Value/Revenue: 6.63
• Enterprise Value/Gross Profit: 11.89
• Enterprise Value/Ebitda: 90.67
• 1Y Price Target: $26.50
• Price Target Upside: -25.04% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.67
• Revenue Forecast (FY): $1.38B

• Rating: 63 Neutral
• Price Target: $38.00 ▲(7.50% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 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

Re-accelerating revenue growth

Sustained top-line acceleration, driven by strong demand in data center and aerospace & defense and contribution from recent acquisitions, indicates durable market traction. Management's sequential guidance and repeated outperformance suggest the company can extend revenue momentum into multiple quarters, supporting investments and strategic initiatives.

Resilient gross margins across segments

High and steady gross margins reflect structural product mix and pricing power in test and optical businesses. Margin resilience across NSE and OSP, including OSP gross margin and strong OSP operating margin, supports sustainable cash generation and reinvestment capacity, making profitability less sensitive to revenue volatility.

Strong cash position and active debt management

A large cash balance plus consistent free cash flow gives the company flexibility to reduce leverage and fund strategic priorities. The use of cash to prepay term debt and exchanges to address convertibles shows disciplined capital allocation, enhancing balance-sheet resilience and capacity for M&A or R&D without relying solely on external financing.

Negative Factors

Rising leverage and balance-sheet sensitivity

Material increase in leverage reduces financial flexibility and raises interest-cost sensitivity. With debt-to-equity elevated versus prior periods, the company is more exposed to cyclical revenue or margin shocks, which can limit its ability to fund growth initiatives and increase refinancing risk if cash generation weakens.

Choppy profitability and earnings quality

Inconsistent profitability — including a recent swing to a net loss — weakens predictability of earnings and returns. Lower operating margins versus earlier peak periods suggest reduced operating leverage, making the company more vulnerable to margin pressure and constraining sustainable funding for capex, R&D, or shareholder returns.

Share dilution from convertible exchanges

Significant dilution from convertible-note exchanges increases share count, lowering per-share earnings and cash-per-share metrics over the long term. While exchanges reduced near-term cash outflows, persistent dilution can hamper EPS growth, reduce shareholder returns potential, and limit flexibility for future buybacks.

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 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

Revenue is re-accelerating and gross margins are resilient, with generally positive free cash flow. Offsetting this, profitability has recently swung to a net loss, operating margins are weaker versus prior peak years, and leverage has increased meaningfully (debt-to-equity ~1.17), raising execution and balance-sheet risk.

Income Statement

Revenue has re-accelerated to 8.6% in TTM (Trailing-Twelve-Months) after a prior down year, and gross margin remains solid and steady (~56–60%). However, profitability is choppy: net income swung to a loss in TTM (Trailing-Twelve-Months) after being profitable in FY2025, and operating margins are well below the stronger levels seen in FY2021–FY2023, indicating weaker cost leverage and earnings quality in the most recent period.

Balance Sheet

Leverage has risen meaningfully, with debt-to-equity moving to ~1.17 in TTM (Trailing-Twelve-Months) (up from ~0.89 in FY2025) as total debt increased sharply. Equity remains positive, but returns on equity are low and inconsistent (negative in FY2024 and modestly positive recently), which reduces balance-sheet flexibility and increases sensitivity to any profit pressure.

Cash Flow

Cash generation is a relative strength: the company stayed free-cash-flow positive across periods and posted strong free-cash-flow growth in TTM (Trailing-Twelve-Months). That said, operating cash flow is not consistently strong versus reported earnings in the provided data, and free cash flow has been volatile year-to-year, which suggests working-capital and conversion dynamics can swing materially.

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

• Technical Analysis Sentiment: Positive
• Last Price: 35.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 35.35 is above the 20-day moving average (MA) of 27.56, above the 50-day MA of 22.34, and above the 200-day MA of 14.88, indicating a bullish trend. The MACD of 2.62 indicates Negative momentum. The RSI at 83.03 is Negative, neither overbought nor oversold. The STOCH value of 80.55 is Negative, 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
VIAV	63 Neutral	$8.18B	-186.35	-5.54%	―	15.60%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LITE	61 Neutral	$55.92B	239.50	29.27%	―	33.62%	―
EXTR	54 Neutral	$1.91B	213.32	12.43%	―	14.31%	―
VSAT	53 Neutral	$6.42B	-18.18	-7.27%	―	1.23%	-31.80%
PI	50 Neutral	$3.65B	-317.61	-6.04%	―	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.

The most recent analyst rating on (VIAV) stock is a Buy with a $20.50 price target. To see the full list of analyst forecasts on Viavi Solutions stock, see the VIAV Stock Forecast page.