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Viavi Solutions
(NASDAQ:VIAV)
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Rating:51Neutral
Price Target:
$32.00
▼(-19.03% Downside)
Action:Reiterated
Date:07/30/26
VIAV scores 51 primarily due to mixed fundamentals: strong revenue growth and solid gross margins are outweighed by a TTM net loss, higher leverage, and weaker free-cash-flow trends. The earnings call was a bright spot, with a clear beat and upbeat Q4 guidance and margin outlook, but technicals remain weak (price below key moving averages) and valuation is pressured by negative earnings and no dividend yield support.
Positive Factors
Revenue Momentum & Acquisition Lift
Sustained top-line growth and a material YoY lift reflect stronger product mix and successful integration of Spirent lines. Higher NSE revenue tied to data center and aerospace demand supports recurring order flows and cross-sell opportunities that can drive multi-quarter structural revenue expansion.
Negative Factors
Elevated Leverage
Higher absolute debt and a meaningful rise in debt-to-equity weaken financial flexibility and increase sensitivity to revenue/cash-flow variability. Even with deleveraging actions, elevated leverage limits optionality for capex or buybacks and raises refinancing and covenant risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Momentum & Acquisition Lift
Sustained top-line growth and a material YoY lift reflect stronger product mix and successful integration of Spirent lines. Higher NSE revenue tied to data center and aerospace demand supports recurring order flows and cross-sell opportunities that can drive multi-quarter structural revenue expansion.
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
$9.47B
Dividend YieldN/A
Average Volume (3M)7.35M
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth40.03%
EPS Growth-193.79%
CountryUS
Employees3,600
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.24
Shares Outstanding246,685,650
10 Day Avg. Volume4,099,136
30 Day Avg. Volume7,346,499
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$61.43Price Target Upside55.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.64
Revenue Forecast (FY)$1.80B
Viavi Solutions Business Overview & Revenue Model
Company Description
Viavi Solutions Inc. (VIAV) is a technology company that provides test, measurement, and monitoring solutions used to build, deploy, and maintain communications networks and related infrastructure. The company primarily serves telecommunications a...
How the Company Makes Money
Viavi makes money primarily by selling hardware instruments, software, and services that enable customers to test, certify, monitor, and optimize network performance across fiber, broadband, and wireless infrastructure.
Key revenue streams includ...
Viavi Solutions Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 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 | 120.00M | 131.90M | 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
Positive
39.52
Price Trends
43.85
Negative
44.38
Negative
32.96
Positive
Market Momentum
-0.97
Negative
55.35
Neutral
67.93
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 39.52 is above the 20-day moving average (MA) of 38.70, below the 50-day MA of 43.85, and above the 200-day MA of 32.96, indicating a neutral trend. The MACD of -0.97 indicates Negative momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 67.93 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $474.67B | 36.87 | 25.14% | 1.45% | 9.21% | 25.97% | |
68 Neutral | $54.86B | 139.82 | 15.65% | ― | 30.59% | 323.23% | |
66 Neutral | $33.52B | 13.20 | 23.57% | 3.35% | 2.72% | 56.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $63.84B | -10.03 | -300.07% | ― | 83.22% | -24212.72% | |
58 Neutral | $52.89B | 71.06 | 4.55% | 1.80% | 13.04% | -24.13% | |
51 Neutral | $9.47B | -311.49 | -3.16% | ― | 40.03% | -193.79% |
* Technology Sector Average
VIAV
Viavi Solutions
43.11
32.08
290.84%
CIEN
Ciena
432.05
337.39
356.42%
CSCO
Cisco Systems
123.88
54.91
79.61%
ERIC
Telefonaktiebolaget LM Ericsson
10.18
2.71
36.24%
NOK
Nokia
10.32
6.19
150.00%
LITE
Lumentum Holdings
932.47
812.24
675.57%
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.