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Contribution to flagship 6G projects underscores VIAVI's pivotal role in the next generation of connectivity

, /PRNewswire/ -- VIAVI Solutions Inc. (VIAVI) (NASDAQ: VIAV) today announced that it has been awarded $1.1 million in funding from the European Smart Networks and Services Joint Undertaking (SNS JU) and Horizon Europe to advance the SHIELD-6G project.

As telecom breaches increase in volume and the threat of quantum-enabled cyberattacks moves from theoretical to imminent, network security has become a strategic priority for operators, enterprises and governments worldwide. The SHIELD-6G project aims to develop a comprehensive AI-driven Cyber Threat Intelligence (CTI) platform for 6G networks with interoperable security, orchestration and regulatory compliance. VIAVI will develop digital twins using its TeraVM AI RAN Scenario Generator (RSG), enabling AI-driven security models to be developed, tested and validated ahead of the first commercial 6G signal going live.

As part of SHIELD-6G, VIAVI will use its AI RSG technology to support advanced security testing of 6G network environments, using AI to simulate, detect and analyze potential threats across the network. This includes generating realistic network datasets that enable intelligent anomaly detection and the continuous refinement of AI-based security mechanisms to ensure that vulnerabilities are identified and addressed before they can be exploited in live networks.

"Security for 6G networks has to be built in from day one, and that requires the ability to simulate, test and detect threats before a single commercial 6G signal goes live," said Ian Langley, Senior Vice President, Wireless, Security and Applications Business Unit, VIAVI. "Our AI RSG technology is already being used to provide the essential digital twin foundation required to better understand 6G propagation, improve energy consumption and reduce FR3 signal interference. SHIELD-6G takes that capability directly into the security domain, where the stakes are even higher. We're delighted to be involved in this latest collaboration at the forefront of global technological innovation."

SHIELD-6G is part of the highly competitive Horizon Europe SNS JU call to accelerate European 6G research and innovation, which selected 20 new 6G projects. VIAVI joins a European consortium coordinated by University College Dublin, working alongside global industry leaders including Ericsson, Nokia, THALES & THALES SIX, as well as network operators Telefónica and LMT of Latvia, bringing together the full chain of expertise needed to secure 6G networks end to end.

About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications. In addition, we develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.

Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.

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SOURCE VIAVI Solutions

Key Takeaways VIAV is gaining from AI infrastructure demand, product innovation and the Spirent business acquisition.VIAV expanded margins as revenues rose 42.8% and non-GAAP operating margin reached 21% in fiscal Q3 2026.Viavi expects AI networking, data centers, 5G, fiber, aerospace and defense demand to support growth. Viavi, Solutions, Inc. (VIAV - Free Report) shares have skyrocketed 167.9% year to date compared with the industry’s growth of 150.2%. The stock has outperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame.

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The company has outperformed its peers like Keysight Technologies, Inc. (KEYS - Free Report) , and Ciena Corporation (CIEN - Free Report) . Shares of Keysight have jumped 72.3% and shares of Ciena have risen 109.7%.

VIAV Rides on Strength in AI Infrastructure VerticalViavi is witnessing solid traction in its Network and Service Enablement, backed by ongoing AI infrastructure buildout. Growing demand from the data center ecosystem, including hyperscalers and semiconductor-driven infrastructure, is driving revenues in the NSE segment.

The company recently launched the industry's first Ultra Ethernet Transport validation solution for AI fabrics. The platform enables hyperscalers, cloud providers and network equipment vendors to verify AI networks with costly GPU infrastructure. The innovation boost Viavi’s prospects across multiple use cases, such as validation of large language model traffic, congestion control and AI workload emulation and several others.

Viavi recently introduced AI Experts, an AI-driven software layer integrated into its testing platforms. Its capabilities include automated configuration, diagnostics assistance, workflow automation, real-time troubleshooting and faster wireless validation. This shows that VIAV is moving towards intelligent software-enabled testing instead of simply selling hardware. This can improve customers’ brand loyalty and boost software revenues over time. The company also recently secured PCIe 6.0 Certification. The certification enhances VIAVI's credibility as a trusted provider of compliance and validation solutions for advanced computing technologies.

One of the largest contributors to growth is the acquisition of Spirent's high-speed Ethernet, network security and channel emulation businesses. Following the buyout, the company benefited from a broader customer base, an Ethernet testing portfolio expansion, stronger AI networking capabilities and increased cross-selling opportunities. A diverse portfolio, innovation initiatives are boosting its competitive edge against its peers such as Keysight, Ciena and Teradyne.

Strong Operating Margin Growth is a PositiveStrong margin expansion shows improving operating leverage. Revenue grew 42.8% year over year, while non-GAAP operating income grew 79.2% during the same time period. Non-GAAP operating margin improved to 21% in the third quarter of fiscal 2026, up from 16.7% in the year-ago quarter. This reflects higher volumes and a favorable product mix within Network and Service Enablement. Segment profitability benefited from acquisition synergies and stronger demand across data center and aerospace markets. Fourth quarter fiscal 2026 outlook indicates additional operating margin expansion, signaling continued operating leverage as revenues scale and a greater portion of sales comes from differentiated testing and software-oriented offerings.

Estimate Revision TrendThe company’s earnings estimates for 2026 has remained unchanged and for 2027 it has improved over the past 60 days.

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Key Valuation Metric of VIAVFrom a valuation standpoint, VIAV is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 51.16 forward 12-month earnings, lower than 58.46 for the industry.

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End NoteViavi is positioning itself as a critical supplier to AI networking infrastructure. Strong demand from data centers, continued 5G and fiber network upgrades, and steady aerospace and defense demand are expected to be major growth drivers for the upcoming quarters. Portfolio expansion through strategic acquisition and a strong focus on innovation is a positive factor. Hence, with a Zacks rank #2 (Buy), Viavi appears to be a good investment option at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.