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Eighteenth annual study reveals strategic initiatives to drive network resilience and security, including NetSecOps adoption, pre-deployment testing and balancing security and performance

, /PRNewswire/ -- There has been a 37% increase in organizations that have fully converged their network and security operations over the past year, according to VIAVI Solutions Inc.'s (NASDAQ: VIAV) 2027 State of the Network study.

This annual study, now in its 18th edition, focuses on current drivers and best practices for network performance and security, seeking insights into priorities and outcomes. The research was conducted by Omdia using surveys of 750 networking and security personnel spanning seven countries, including Brazil, Canada, France, Germany, Mexico, the United Kingdom and the United States. Participants represented different levels within IT, from leadership to management, across a wide range of organization sizes and industry verticals.

The survey reported a 10-point rise in completed deployments (from 27% in 2025 to 37% in 2026). An additional 45% of respondents stated they were in the process of converging network and security operations, meaning just over four-fifths of enterprises (82%) have undergone or are undergoing the move to NetSecOps.

Forty-four percent of those that had completed the switch cited enhanced security as a key benefit of converging, with 30% noticing a reduced time to detect issues since deploying a NetSecOps approach. Twenty-two percent cited a reduction in the reported number of incidents and 22% stated the time to investigate had reduced. Additionally, those that had implemented a NetSecOps strategy were 2.7 times more likely to have reported a significant improvement in mean-time-to-detect (MTTD) rates (35 vs. 13%).

"The increase in completed conversion and the benefits being cited in the State of the Network Study are consistent with the experience of our customers," said Chris Labac, Vice President and General Manager, Network Performance and Threat Solutions, VIAVI. "Aligning a converged NetSecOps organizational model with integrated network monitoring and security platforms is a critical success factor for enterprises today."

"As an organization's attack surface expands, driven by increasingly sophisticated and AI-enabled threats, NetOps and SecOps teams need shared visibility to strengthen their security posture," said Jim Frey, Principal Analyst, Networking, Enterprise Strategy Group from Informa Tech Target. "With around a fifth of enterprises still without a defined strategy, the challenge is to reach these organizations and demonstrate the benefits of a converged NetSecOps approach."

Another strategic approach organizations are using to improve network performance and security is structured testing. The most common approach, cited by more than half of respondents, is pre-deployment validation of new technologies, such as post-quantum cryptography (PQC), AI security, SASE and cloud networking. Among respondents conducting testing, 52% reported seeing fewer outages and service disruptions, 44% reported a reduced number and/or severity of security incidents and 42% reported improvements in either application performance or latency.

The survey also highlighted that most organizations were using multiple strategies to mitigate the impact of security measures on network performance. Sixty-five percent of respondents reported the use of AI and ML tools to optimize both security and performance, 65% conduct capacity planning to prevent security measures from straining the network, 58% have adopted pre-deployment testing of network and security controls, and 58% again use ongoing, continuous testing and tuning of security controls to minimize performance impact.

About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test and measurement, and resilient Position, Navigation and Timing (PNT) 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.

Media Inquiries:
Grand Bridges
Emma Jenkins
[email protected]
+1 415 800 4529

SOURCE VIAVI Solutions

On October 16, 2026, Viavi Solutions Inc VIAV shares fell 9.3% to $33.38, significantly impacted by recent market volatility. The stock has experienced a 52-week high of $60.43 and a low of $12.77, reflecting considerable fluctuations in investor sentiment.

GF Value™ verdict: Current price of $33.38 vs GF Value of $14.97, indicating 123.0% overvaluation.GF Score™: 66/100, suggesting an above-average performance relative to peers.Notable signal: Insiders sold $59.8M worth of shares over the past 12 months, with no buying activity.Is VIAV Overvalued or Undervalued?The current GF Value™ estimate for Viavi Solutions Inc stands at $14.97, which suggests that the stock is significantly overvalued at its current price of $33.38. GF Value™ is GuruFocus' proprietary intrinsic-value estimate that incorporates historical trading multiples, past business growth, and future performance forecasts. Given this valuation, there is a substantial margin of safety for investors looking for potential buy signals. However, it is important to note that this reading should be interpreted cautiously, as the GF Value™ is likely less reliable for a company like Viavi that is currently unprofitable and cash-flow negative.

The GF Valuation label indicates that VIAV is significantly overvalued, highlighting risks for potential investors. The considerable distance between the current share price and the GF Value™ suggests that the market may have overly optimistic expectations for the company’s future performance. Investors should remain vigilant regarding potential downward adjustments in the stock price as market conditions evolve.

How Does VIAV's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)Not applicable229.8x (5-Year Median)Forward P/E20.3x-As the analysis shows, Viavi Solutions Inc does not currently have a viable P/E ratio due to its unprofitable status, while its 5-year median P/E stands at an extremely high 229.8x. The forward P/E of 20.3x illustrates a markedly different valuation perspective compared to the historical average, suggesting that current earnings expectations are significantly lower than in the past. This P/E analysis agrees with the GF Value™ verdict, reinforcing the notion that VIAV is overvalued at its present market price.

What Does VIAV's GF Score™ Tell Us?The GF Score™ measures a stock's overall quality based on various performance metrics, including financial strength, profitability, growth, valuation, and momentum. VIAV's GF Score™ of 66/100 indicates that it is performing above average compared to its industry peers. The strongest sub-rank is its growth rank at 8/10, suggesting potential for future revenue increase, whereas the weakest is the valuation rank at 1/10, which aligns with the earlier findings of overvaluation.

MetricRatingGF Score™66Financial Strength4/10Profitability5/10Growth8/10Valuation1/10Momentum6/10Overall, the scores present a mixed picture of Viavi Solutions Inc. While the company's growth prospects appear robust, there are notable weaknesses in financial strength and valuation, which warrant caution for potential investors. The low valuation rank at 1/10 signals that the current market price does not reflect a favorable investment opportunity based on intrinsic value.

What Are Gurus and Insiders Doing with VIAV?Currently, 8 gurus hold shares of Viavi Solutions Inc, with 6 adding to their positions and 3 trimming their stakes in recent quarters. This activity indicates a cautious optimism among institutional investors, as they seem to recognize potential in the company despite its current challenges. The guru ownership signal is a key differentiator for GuruFocus, offering valuable insights into institutional sentiment.

In contrast, insider activity presents a starkly different picture. Over the past 12 months, insiders have sold shares amounting to $59.8M, with no buying activity reported. This selling trend raises concerns about confidence in the company's future performance, suggesting that insiders may not view the current valuation as favorable. Such patterns in insider trading can often serve as a warning signal for potential investors.

What This Means for InvestorsIn conclusion, Viavi Solutions Inc is currently overvalued based on its GF Value™ estimate of $14.97, which highlights a significant discrepancy from its market price of $33.38. The findings from the P/S analysis reinforce the notion that earnings-based valuations are not applicable at this time due to the company's unprofitable status. The mixed signals from guru activity and concerning insider selling further complicate the outlook for potential investors. For a deeper dive into Viavi Solutions Inc's financials, visit the Viavi Solutions Inc VIAV stock page.

Frequently Asked QuestionsWhat is VIAV's GF Score™?

VIAV has a GF Score™ of 66/100, indicating above-average performance compared to its industry peers.

Is VIAV overvalued or undervalued?

VIAV is considered overvalued, with a GF Value™ estimate of $14.97 compared to its current price of $33.38.

What is VIAV's P/E ratio?

VIAV does not have a relevant P/E ratio due to its unprofitability, while its 5-year median P/E stands at an extremely high 229.8x.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Viavi will supply its T/Rx system to modernize U.S. Army test ranges for drone defense.Its rugged platform replicates contested battlefield conditions using complex waveforms and signals.VIAV's technology recreated electronic warfare conditions in Ukraine to help defense firms test systems.
Viavi Solutions Inc. (VIAV - Free Report) has been selected by the U.S. Army’s Threat Systems Management Office, under Portfolio Acquisition Executive C2/CC2, to supply its T/Rx software-defined transceiver system for modernizing military test ranges. The system will create realistic electromagnetic environments to support the development and testing of drones, counter-drone systems and low-cost interceptors.

Viavi’s T/Rx platform combines electromagnetic spectrum monitoring, recording, analysis and transmission capabilities in a compact, rugged, field-deployable unit. It enables test operators to generate complex waveforms, frequency-agile signals and multi-signal scenarios that replicate the contested electromagnetic conditions found on modern battlefields.

The company’s technology was used at Camp Grayling to recreate electronic warfare conditions observed in Ukraine. Its advanced signal-generation capabilities help defense companies evaluate their systems under challenging conditions and identify areas for improvement.

As demand for advanced electronic warfare testing solutions grows, the agreement could strengthen Viavi’s position in the aerospace and defense market and create new growth opportunities for its testing and measurement business.

How Are Competitors Advancing in the Defense Sector?Viavi faces competition from ADTRAN Holdings, Inc. (ADTN - Free Report) and Keysight Technologies, Inc. (KEYS - Free Report) . ADTRAN is expanding its defense presence through its Oscilloquartz timing and synchronization solutions. These technologies support reliable communications and precise network coordination for mission-critical defense applications. ADTRAN is strengthening its U.S. aerospace, defense and government business through agreements with six sales representative firms to promote its solutions.

Keysight is expanding its defense business through advanced testing and simulation technologies. The company provides solutions that help defense organizations test electronic warfare systems, radar and military communications equipment. Keysight has secured a five-year contract with Leonardo UK to provide test equipment management, maintenance and calibration services for its aerospace and defense operations.

VIAV’s Price Performance, Valuation & EstimatesViavi’s shares have skyrocketed 223% over the past year compared with the industry’s growth of 137.1%.

Image Source: Zacks Investment Research

Going by the price/earnings ratio, the company's shares currently trade at 24.48 forward earnings, lower than 35.17 for the industry.

Image Source: Zacks Investment Research

Earnings estimates for both 2026 and 2027 remained static at $1.62 and $1.86, respectively, over the past 60 days.
Image Source: Zacks Investment Research

Viavi stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The combined portfolio will enable customers to recreate real-world network conditions, validate user experience and accelerate deployment for the AI, Data Center, Defense, Satcom and Enterprise markets

, /PRNewswire/ -- Calnex Solutions Plc (Calnex) (LSE:CLX) today announced an expansion to its strategic partnership with VIAVI Solutions. Combining Calnex's unique network emulation portfolio (SNE, SNE-X and SNE-Ignite) and VIAVI's industry-leading L0-7 ONE LabPro™, TestCenter and CyberFlood solutions, the partnership offers realistic traffic generation, user emulation and network impairment technologies in a combined test architecture. 

The collective offering from Calnex and VIAVI will enable those working across the network infrastructure ecosystem to generate realistic application and user traffic, recreate real-world network conditions, and measure the resulting impact on network and application performance before deployment.

"Networks continue to evolve, and as technologies advance, so too does the complexity and diversity of the topologies supported by the infrastructure. This growing complexity places greater demands on pre-deployment testing, yet many validation environments still fail to mirror real-world network conditions, increasing the risk of performance issues after launch.  We are excited to expand our relationship with VIAVI to address this need for our customers across the AI, Data Center, Defense, Satcom and Enterprise sectors." said Graeme Urquhart, VP Sales, Calnex Solutions. "Combining our resources enables us to build on our strong industry relationships, drive sustainable growth, and deliver exceptional value to our customers by offering access to these leading technologies globally."

"The combination of realistic traffic generation and accurate network emulation delivers a powerful foundation for performance assurance," said Mark Bateman, Vice President, Sales and Channel, Lab and Production, VIAVI. "Together with Calnex, we are helping customers move beyond lab simulations to confidently validate how applications, services and networks will perform in production environments."

The expanded partnership builds on the companies' existing collaboration for the comprehensive testing of Open RAN products across the protocol, signal and timing domains, leveraging VIAVI's TM500, TeraVM and XEdge platforms and Calnex's Paragon-neo, SNE-Ignite and SNE-X.

About Calnex
CALNEX SOLUTIONS (LSE:CLX) Calnex Solutions gives companies the clarity, confidence and certainty to deliver high-performance networks and applications. 

We provide high-precision tools for testing synchronization, validating network performance and emulating real-world conditions, giving customers the clarity they need to launch their products with confidence.

For nearly 20 years we have been trusted by engineering teams across industries who build innovative infrastructure that can't afford to fail. Our global customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel, Qualcomm, IBM and Meta. Founded in 2006, Calnex is headquartered in Linlithgow, Scotland, with additional locations in Belfast, Northern Ireland, Stevenage, England and California in the US, supported by sales teams in China and India. Calnex has a global network of partners, providing a worldwide distribution capability.

Learn more about Calnex at www.calnexsol.com.  Follow us on LinkedIn.

About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test and measurement, 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. 

For press enquiries contact
Lee Noble
Calnex Solutions
[email protected]

SOURCE Calnex Solutions Plc

Key Takeaways VIAV surged 268.5% in a year as AI data-center demand, margins and testing capabilities improved.NSE revenues jumped 69.2% to $353.9M, driven by testing demand and contributions from Spirent.VIAV expects fiscal Q1 revenues of $450M-$460M and non-GAAP EPS of 40-42 cents. Viavi Solutions Inc. (VIAV - Free Report) has surged 268.5% over the past year compared with the industry’s growth of 148.5%. It has outperformed peers like Corning Incorporated (GLW - Free Report) and Ooma, Inc. (OOMA - Free Report) . While Corning has gained 92.4%, OOMA jumped 79.9% during this period. The more than threefold growth was largely buoyed by growing investor optimism over Viavi’s rising exposure to artificial intelligence (AI)-driven data-center spending, improving profitability and expanding testing capabilities. 

One-Year VIAV Stock Price Performance

Image Source: Zacks Investment Research

AI Data-Center Boom: Key Growth CatalystViavi is increasingly benefiting from the rapid buildout of AI and hyperscale data center infrastructure. Demand for high-speed optical, Ethernet and network-testing solutions remains healthy as cloud service providers, semiconductor companies and networking vendors invest heavily in increasingly complex AI infrastructure.

The data-center ecosystem now accounts for roughly half of Network and Service Enablement (NSE) revenues, underscoring the growing importance of this market to Viavi’s growth profile.
In the fiscal fourth quarter, NSE revenues surged 69.2% year over year to $353.9 million.

Growth was supported by robust demand for lab, production and field-testing solutions, strength in aerospace and defense and contributions from the acquired Spirent businesses. The Spirent assets have also strengthened Viavi’s capabilities in high-speed Ethernet testing, network security and channel emulation. The broader portfolio should support cross-selling opportunities while helping the company address increasingly sophisticated testing requirements across AI clusters and next-generation networks.

Margin Expansion Strengthens the Earnings StoryViavi exited fiscal 2026 on a strong note, with both revenues and profitability exhibiting healthy improvement. Revenues increased 40% year over year to $1.52 billion, while non-GAAP earnings surged 112.8% to $1 per share.

Non-GAAP operating margin expanded 630 basis points to 20.6%. The sharp improvement highlights stronger operating leverage and suggests that rising revenues are translating effectively into earnings growth.

This margin expansion is particularly encouraging as Viavi integrates Spirent and increases its exposure to higher-growth markets such as AI data centers, aerospace and defense and advanced wireless testing.

Image Source: Zacks Investment Research

Upbeat Outlook Points to Continued MomentumManagement expects the positive momentum to extend into fiscal 2027. For the fiscal first quarter, Viavi projects revenues in the range of $450 million to $460 million and non-GAAP earnings of 40-42 cents per share. Both metrics indicate sequential improvement from the June quarter.

The outlook suggests that healthy demand trends are continuing across several important end markets. In addition to AI-related data-center opportunities, aerospace and defense remain a key growth avenue, particularly for positioning, navigation and timing solutions. Strength in these markets also helps diversify Viavi’s business and reduces its historical dependence on telecom carrier spending.

6G and Wireless Testing: Other Growth PillarsViavi is also positioning itself for emerging opportunities in next-generation wireless technologies. The company’s Vertex 6.0 advanced channel emulator is designed for 6G and Wi-Fi 7/8 testing. The platform supports up to 400 MHz of instantaneous bandwidth and carrier frequencies of up to 23.6 GHz, while extending across cellular, Wi-Fi, military and aerospace applications.

Viavi is also participating in the SHIELD-6G project, using its TeraVM AI RAN Scenario Generator to develop digital twins for AI-driven security testing. These developments broaden Viavi’s wireless-testing opportunity and provide exposure to emerging markets such as 6G, Wi-Fi, AI-RAN and specialized RF testing. Although these markets are still developing, early positioning could give VIAVI additional long-term growth opportunities.

Estimate TrendThe earnings estimate trend also remains favorable. The Zacks Consensus Estimate for Viavi’s fiscal 2027 earnings has increased 165.6% over the past year to $1.62 per share. Upward earnings estimate revisions generally reflect improving confidence in a company’s operating outlook. In Viavi’s case, the positive trend appears consistent with improving margins, healthy demand and growing contributions from acquired businesses.

Image Source: Zacks Investment Research

Should Investors Chase Viavi After the Rally?Viavi’s 268.5% share price rally has been supported by a substantial improvement in business fundamentals. AI data-center demand is strengthening, the Spirent acquisition has expanded the company’s addressable market, profitability is improving and aerospace and defense continue to provide diversification. The company also appears well-positioned to benefit from long-term growth opportunities in 6G, Wi-Fi, AI-RAN and advanced network testing.

VIAV sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Riding on a robust earnings surprise history and favorable Zacks Rank, Viavi appears primed for further stock price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.

CyberFlood CF50 also features the industry's lowest power consumption and highest TLS performance with native PQC support

, /PRNewswire/ -- VIAVI Solutions Inc. (VIAVI) (NASDAQ: VIAV) today introduced the CyberFlood CF50, the industry's smallest and lightest all-in-one platform for enterprise-scale application performance, security, AI inference and large-language model (LLM) testing up to 100G.

CyberFlood CF50 also features the industry’s lowest power consumption and highest TLS performance with native PQC support Increasingly encrypted applications, Zero Trust architectures and AI-driven services require validation to go beyond infrastructure capacity and examine the impact of security controls and network performance on application responsiveness and user experience. The CF50 generates highly realistic encrypted and mixed application traffic to help organizations assess performance, scalability, resilience and quality of experience before deployment.

The highly portable and power-efficient 1U appliance combines realistic Layer 4-7 traffic generation, security assessment and AI inference testing capabilities in a cost-effective platform, bringing enterprise-scale testing to a wide range of network equipment manufacturers, systems integrators and service providers. It offers the industry's lowest power consumption, as well as native PQC support and a TLS performance that is 1.75X that of the nearest competitor.

The CF50 includes an easy-to-use web interface for the validation of modern network and security infrastructure. It has no requirement for an MS Windows client and includes the ability to implement automated goal-seeking, MITRE ATT&CK frameworks and repeatable traffic-mix testing.

"As organizations deploy increasingly complex combinations of AI workloads, encrypted applications and distributed security architectures, the ability to validate performance under realistic conditions is becoming a critical requirement rather than an optional capability," said Mauricio Sanchez, Senior Director, Enterprise Security and Networking, Dell'Oro Group. "Organizations need testing solutions that can accurately emulate real-world users, applications and AI interactions to help identify bottlenecks, optimize infrastructure investments and reduce deployment risk."

"The CyberFlood CF50 combines realistic application traffic, security validation and AI inference testing in a highly portable platform, enabling customers to validate infrastructure at scale, accelerate deployment decisions and improve confidence in production readiness," said Sashi Jeyaretnam, Senior Director, Security Product Management, VIAVI. "It provides a practical way for organizations to validate performance before complex AI-enabled and security-driven services go live."

The CF50 joins the CyberFlood CF1000, which is targeted at large enterprises demanding the highest level of performance.

About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test and measurement, and resilient Position, Navigation and Timing (PNT) 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.

Media Inquiries:
Grand Bridges
Emma Jenkins
[email protected]
+1 415 800 4529

SOURCE VIAVI Solutions

Viavi Solutions Inc. (NASDAQ:VIAV – Get Free Report) SVP Luke Scrivanich sold 35,866 shares of the business’s stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $36.24, for a total transaction of $1,299,783.84. Following the completion of the sale, the senior vice president directly owned 39,598 shares in the company, valued at approximately $1,435,031.52. This trade represents a 47.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Viavi Solutions Stock Performance Shares of VIAV stock opened at $36.43 on Thursday. The firm’s 50 day moving average is $37.94 and its 200 day moving average is $41.79. The stock has a market capitalization of $8.99 billion, a P/E ratio of -242.85 and a beta of 1.22. Viavi Solutions Inc. has a 12 month low of $12.05 and a 12 month high of $60.43. The company has a current ratio of 1.85, a quick ratio of 1.62 and a debt-to-equity ratio of 0.27.

Viavi Solutions (NASDAQ:VIAV – Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The communications equipment provider reported $0.34 earnings per share for the quarter, beating analysts’ consensus estimates of $0.30 by $0.04. The business had revenue of $443.10 million during the quarter, compared to analyst estimates of $432.62 million. Viavi Solutions had a negative net margin of 2.00% and a positive return on equity of 19.60%. Viavi Solutions’s revenue was up 52.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.13 EPS. Viavi Solutions has set its Q1 2027 guidance at 0.400-0.420 EPS. On average, sell-side analysts anticipate that Viavi Solutions Inc. will post 1.42 earnings per share for the current year.

Institutional Trading of Viavi Solutions Large investors have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in Viavi Solutions in the second quarter valued at approximately $1,228,529,000. Capital World Investors increased its holdings in shares of Viavi Solutions by 4.4% in the 4th quarter. Capital World Investors now owns 15,620,410 shares of the communications equipment provider’s stock worth $278,356,000 after buying an additional 664,956 shares during the last quarter. Bank of America Corp DE bought a new position in shares of Viavi Solutions in the 2nd quarter worth $134,922,000. Arrowstreet Capital Limited Partnership raised its position in shares of Viavi Solutions by 0.5% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 6,673,145 shares of the communications equipment provider’s stock valued at $118,915,000 after buying an additional 33,463 shares in the last quarter. Finally, Geode Capital Management LLC lifted its holdings in shares of Viavi Solutions by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 5,351,211 shares of the communications equipment provider’s stock worth $95,373,000 after acquiring an additional 20,776 shares during the last quarter. Institutional investors own 95.54% of the company’s stock. Analyst Ratings Changes Several research analysts have commented on the company. Weiss Ratings downgraded Viavi Solutions from a “sell (d+)” rating to a “sell (d)” rating in a research note on Tuesday, September 8th. Stifel Nicolaus set a $65.00 price target on Viavi Solutions in a research report on Wednesday. UBS Group cut their price objective on shares of Viavi Solutions from $60.00 to $44.00 and set a “neutral” rating for the company in a research report on Thursday, August 6th. Wall Street Zen cut shares of Viavi Solutions from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 29th. Finally, B. Riley Financial decreased their target price on shares of Viavi Solutions from $63.00 to $60.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Viavi Solutions has a consensus rating of “Moderate Buy” and an average price target of $55.43.

Read Our Latest Analysis on VIAV

Viavi Solutions Company Profile (Get Free Report)

Viavi Solutions Inc (NASDAQ: VIAV) develops test, measurement, and assurance technologies for communications networks and optical systems. Its products and software help telecommunications providers, network equipment manufacturers, data centers, government organizations, and other enterprises build, validate, monitor, and maintain wired and wireless networks.

The company’s offerings include instruments and software for fiber-optic testing, network installation and certification, service activation, network performance monitoring, troubleshooting, and telecommunications equipment testing.

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Certification to CMMC advanced cybersecurity standard strengthens company's position as a trusted partner to government, defense and national security partners

, /PRNewswire/ -- VIAVI Solutions LLC, the Aerospace and Defense division of VIAVI Solutions Inc. (VIAVI) (NASDAQ: VIAV) today announced the successful completion of its Level 2 CMMC certification for its radio test, avionics, synthetic and modular, and Position, Navigation and Timing (PNT) product lines.

The CMMC assessment process was conducted by leading C3PAO A-LIGN, an experienced federal assessor and compliance partner trusted by more than 6,400 global organizations to help mitigate cybersecurity risks.

Certification to CMMC advanced cybersecurity standard strengthens company’s position as a trusted partner to government, defense and national security partners "Achieving CMMC Level 2 certification reflects our dedication to safeguarding the sensitive information that underpins national security and reinforces our role as a trusted partner to the U.S. Defense Industrial Base (DIB)," said Doug Russell, Senior Vice President and General Manager, Aerospace and Defense, VIAVI. "We look forward to extending the certification to the Inertial Labs product lines, which were acquired by VIAVI in 2025."

CMMC was developed by the U.S. Department of Defense (DoD) to ensure that cybersecurity controls and processes adequately protect Controlled Unclassified Information (CUI) that resides on DIB systems and networks to protect national security. This certification is mandatory for all entities doing business with the DoD.

"Congratulations to the VIAVI Aerospace and Defense team for achieving CMMC Level 2 certification. This accomplishment demonstrates a strong commitment to safeguarding valuable information to protect our nation, developing a competitive advantage, and creating a culture of security," said Petar Besalev, Executive Vice President of Compliance and Cybersecurity Services, A-LIGN. "We're proud to support this integral step in VIAVI's compliance journey with a high-quality assessment process and deep expertise in federal compliance."

This certification demonstrates VIAVI's commitment to safeguarding the United States' national security by complying with CMMC's rigorous standards and protecting federal contract information and CUI.

About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test and measurement, and resilient Position, Navigation and Timing (PNT) 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.

Media Inquiries:
Grand Bridges
Emma Jenkins
[email protected]
+1 415 800 4529

SOURCE VIAVI Solutions

3.23K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of VIAV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Paul McNab, EVP, Chief Mktg & Stgy Officer of Viavi Solutions Inc. (VIAV +3.61%), sold 11,032 shares of common stock on Sept. 11, 2026, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold11,032Transaction value~$429,917Post-transaction shares (directly held)25,639Post-transaction value$993,511.25Transaction value based on SEC Form 4 weighted average sale price ($38.97); post-transaction value based on Sept. 11, 2026, market close ($38.75).

Key questionsWhat is the current scale of the executive's direct equity position?
Following the sale of 11,032 shares, the insider retains 25,639 shares held directly. This position is valued at $993,511.25 based on the Sept. 11, 2026, market close of $38.75.How does this transaction relate to the insider's previous stake?
The 11,032 shares sold represented 30% of the 36,671 shares the executive held before this transaction. This reduces the total ownership interest to 0.0104% of the company.What are the financial fundamentals of the issuer?
Viavi Solutions reported trailing twelve-month revenue of $1.5 billion and a net loss of $30.4 million. The company, which provides network testing and monitoring solutions, has a market capitalization of $9.6 billion.At what price levels was the transaction executed?
The shares were sold at a weighted average price of $38.97 per share. This execution occurred on a day when the stock closed at $38.75.Company OverviewMetricValueShare Price (as of market close 2026-09-11)$38.75Market Capitalization$9.6 billionRevenue (TTM)$1.5 billionNet Income (TTM)-$30.4 millionCompany SnapshotViavi Solutions provides a comprehensive suite of network testing, monitoring, and assurance solutions that generate revenue across multiple customer verticals, including telecommunications service providers, equipment manufacturers, and governmental organizations.The company operates through three core business segments--Network Enablement, Network Intelligence, and Optical Security--delivering software and hardware solutions that enable customers to construct, maintain, and optimize their network infrastructure.Viavi's primary customer base encompasses telecommunications service providers, network equipment manufacturers, original equipment manufacturers, governmental entities, and the aviation industry, positioning the company as a critical infrastructure provider across multiple end markets.Viavi Solutions is a $9.6 billion market capitalization provider of network testing and assurance solutions serving the global telecommunications and infrastructure sectors. With $1.5 billion in TTM revenue and 4,100 employees based in Chandler, Arizona, the company maintains a diversified customer base spanning service providers, equipment manufacturers, and government agencies. The company's multi-segment operating model and focus on network infrastructure assurance position it as a critical enabler of digital connectivity across telecommunications and enterprise networks.

What this transaction means for investorsPaul McNab's sale of Viavi stock is likely to leave investors confused. This recent sale was the third share sale this year, though the 11,032 shares sold on Sept. 11 were the largest. He unloaded 2,727 shares in May and another 1,595 on Aug. 10.

McNab could be locking in some profits amid the 216% run in Viavi stock over the last year. The company has benefited from the AI-driven demand for its network testing, monitoring, and assurance solutions.

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Still, even though the volume of shares McNab has sold may leave investors confused, they have good reason to keep the faith in the stock. Viavi's revenue rose by 40% over the last year to over $1.5 billion. Interestingly, it turned back to losses as the company ramped up investment in its growing business.

Moreover, at a price-to-sales (P/S) ratio of 6, it is relatively cheap. Although investors might want to approach Viavi stock with caution amid McNab's selling, the tech stock's long-term growth could continue.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Viavi Solutions. The Motley Fool has a disclosure policy.

Demonstrations to include L0-3 and AI fabric validation, CPO and Silicon Photonics testing, quantum and hybrid network evaluation, and fiber inspection, cleaning and monitoring solutions

, /PRNewswire/ -- VIAVI Solutions Inc. (VIAVI) (NASDAQ: VIAV) will showcase its end-to-end data center portfolio for foundational silicon technologies, modules and systems testing at booth 1001 at ECOC 2026 from September 21-23 at the FYCMA exhibition center in Malaga, Spain.

Hyperscalers and cloud providers continue to push the boundaries of network speed and capacity as they scale AI infrastructure. 1.6T technologies are being deployed within the rack (scale-up), across clusters (scale-out) and between data centers (scale-across), with planning for 3.2T underway. These technologies rely on 16x224G and 8x448G lane architectures enabled through advanced Silicon Photonics (SiPh), Co-packaged Optics (CPO) and robust optical connectivity. AI infrastructure is driving unprecedented growth in fiber density, accelerating the expansion of fiber interconnects and multifiber connectivity. In addition, quantum technologies are impacting security assumptions, driving significant increases in system-level test complexity.

VIAVI addresses these test challenges at every stage, from design and production to deployment and monitoring.

Design Validation: At ECOC 2026, VIAVI will showcase its latest advanced fabric validation technologies for L0 to L3 High-Speed Ethernet (HSE) testing, including:

ONE LabPro® ONE-1600: the industry's first fully integrated test solution for pluggable 1.6T transceivers now supports a flexible new configuration, with both IHS and RHS interfaces in the same module. Also on display is the new ONE-1600 ERP 1.6T module for network equipment manufacturers and production use cases, sized for these environments with a core feature set at a reduced price point. TestCenter D2: enabling comprehensive AI workload testing of 1.6T Layers 2 and 3, the platform identifies interconnect bottlenecks, latency hotspots and fault-tolerance gaps that limit GPU utilization and hinder AI cluster scalability. It is the industry's first Ultra Ethernet Transport (UET) validation solution for AI fabric validation across the Ultra Ethernet ecosystem.  Manufacturing Test: VIAVI's MAP-300 platform will feature several new products for CPO and SiPh testing. Engineered for the high-density demands driven by connectivity, silicon test insertions and sub-system manufacturing, the MAP-300 now includes a Remote Head Polarity Mapper, a High-Density Variable Optical Attenuator (HD VOA), a High-Density Optical Power Meter (HD OPM) and a High-Density In-Line Optical Power Meter (HD IL-OPM). The platform also supports quantum key distribution (QKD) and hybrid network evaluation.

For the first time, VIAVI will present its optical connector end-face geometry test solutions from the acquisition of the Direct Optical Research Company (DORC) product line. The fiber surface topology measurement products round out VIAVI's interferometry, inspection and cleaning portfolio for connectivity manufacturers.

Deployment and Monitoring: VIAVI will introduce the MAP-2800 test head for standalone operation and centralized testing with the Fusion test system. It is the industry's first rack-mounted tester for Ethernet applications for centralized and field testing from 10M to 800G. It integrates seamlessly with other VIAVI handheld testers, test heads, virtual agents or smart Small Form-factor Pluggables (SFPs) for lower bandwidth sites, automating processes and minimizing truck rolls.

VIAVI will demonstrate the DCX-700 test set for automated tier-1 certification and validation for high fiber-count networks, helping data center operators deploy large-scale MPO/MMC-based connectivity faster and with greater confidence. VIAVI will also showcase its expanding portfolio for testing Hollow Core Fiber (HCF) with T-BERD/MTS-4000 and OneAdvisor800, which support the industry's drive toward lower latency and higher performance optical infrastructure through advanced characterization, qualification and monitoring solutions.

About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test and measurement, and resilient Position, Navigation and Timing (PNT) 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.

Media Inquiries:
Grand Bridges
Emma Jenkins
[email protected]
+1 415 800 4529

SOURCE VIAVI Solutions

Key Takeaways VIAV's Q4 revenue rose 52.5% to $443.1M, while adjusted EPS jumped 161.5% to 34 cents.AI data centers now account for roughly half of NSE revenues, with robust growth expected to continue.VIAV guides Q1 revenue to $450M-$460M and non-GAAP EPS to 40-42 cents, both up sequentially. Viavi Solutions Inc. (VIAV - Free Report) wrapped up fiscal 2026 on a strong note, backed by robust demand across the artificial intelligence (AI) data-center ecosystem, aerospace and defense markets and contributions from the acquired Spirent businesses. The company also witnessed substantial margin expansion, highlighting improving operating leverage.

Fiscal fourth-quarter revenues surged 52.5% year over year to $443.1 million and surpassed the Zacks Consensus Estimate of $433 million. Adjusted earnings jumped 161.5% year over year to 34 cents per share, beating the consensus estimate of 30 cents by 13.3%. VIAV surpassed the consensus mark for earnings and revenues in each of the past four quarters.

Management expects the momentum to extend into fiscal 2027. Let us delve a little deeper into the factors that make VIAV an attractive investment proposition following its solid fiscal fourth-quarter performance.

AI Data Center Momentum Remains a Key CatalystViavi's expanding exposure to AI and hyperscale data centers is emerging as one of its most important growth drivers. Network and Service Enablement (NSE) revenues soared 69.2% year over year to $353.9 million in the fiscal fourth quarter, supported by demand for lab, production and field-testing products, aerospace and defense solutions and the acquired Spirent portfolio.

The data-center ecosystem now accounts for roughly half of NSE revenues, reflecting the rapid transformation of VIAV's revenue mix away from its historical dependence on telecom service-provider spending. Management expects robust data-center growth to continue over the next several quarters.

The company has also expanded its AI-networking portfolio through products such as the Ultra Ethernet Transport validation platform and the CyberFlood CF1000 400G security and application-performance testing platform. These solutions enable Viavi to benefit as hyperscalers, cloud operators and networking vendors deploy increasingly complex, high-bandwidth AI infrastructure.

Spirent Integration Strengthens VIAV's Growth ProfileThe acquisition of selected Spirent Communications businesses has significantly expanded Viavi's addressable market and technological capabilities. It has strengthened the company's position in high-speed Ethernet testing, network security, channel emulation and enterprise network validation while creating cross-selling opportunities across its existing customer base.

Spirent's contribution should increase in the near term. Management expects the acquired business to grow roughly 10% sequentially in the September quarter, while December is typically its strongest quarter because of favorable seasonality.

The combination of Viavi's optical and network-testing capabilities with Spirent's Ethernet, cybersecurity and network-validation assets provides a broader platform for addressing the increasingly sophisticated testing requirements associated with AI clusters, cloud networks and next-generation communications infrastructure.

Aerospace & Defense Provides Another Growth EngineViavi's diversification beyond traditional telecom customers is another positive. The aerospace and defense business delivered another quarter of strong year-over-year growth, driven particularly by healthy demand for positioning, navigation and timing (PNT) products.

Management expects PNT to remain a multi-year growth driver for its aerospace and defense operations. This market provides VIAV with exposure to government and defense modernization spending and reduces dependence on more cyclical carrier capital expenditures. The combination of AI data centers and aerospace and defense has materially changed the company's growth profile, providing greater diversification and improving revenue visibility.

Price PerformanceViavi has surged 244.1% in the past year compared with the industry’s growth of 189.1%. It has outperformed peers like Knowles Corporation (KN - Free Report) and Airgain, Inc. (AIRG - Free Report) . While Airgain has gained 25.3%, Knowles soared 59% over this period.

One-Year VIAV Stock Price Performance

Image Source: Zacks Investment Research

Upbeat Q1 Outlook Signals Sustained MomentumManagement's first-quarter fiscal 2027 outlook reinforces the bullish growth narrative. VIAV expects revenues between $450 million and $460 million, above the $443.1 million recorded in the fiscal fourth quarter. Non-GAAP earnings are projected between 40 cents and 42 cents per share, representing another healthy sequential increase from 34 cents in the June quarter.

Management has also become more optimistic about Viavi's longer-term revenue trajectory. Given the current pace of growth, the company believes it could reach quarterly revenues of more than $500 million sometime during calendar 2027, earlier than its previous expectation of achieving that level near the end of fiscal 2028.

Moving ForwardViavi entered fiscal 2027 with considerable momentum. Strong AI data-center spending and the expanding Spirent portfolio should support continued growth in the NSE segment. At the same time, healthy aerospace and defense demand provides another secular growth avenue.

The upbeat first-quarter outlook adds further visibility to the growth story. Investors seeking exposure to the rapidly expanding AI networking and high-speed optical testing ecosystem may consider betting on VIAV for further upside.

Viavi currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BlackRock Inc. bought a new stake in Viavi Solutions Inc. (NASDAQ:VIAV – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 25,728,357 shares of the communications equipment provider’s stock, valued at approximately $1,228,529,000. BlackRock Inc. owned approximately 11.00% of Viavi Solutions at the end of the most recent quarter.

Other institutional investors and hedge funds also recently made changes to their positions in the company. WPG Advisers LLC raised its position in Viavi Solutions by 96.2% during the first quarter. WPG Advisers LLC now owns 775 shares of the communications equipment provider’s stock valued at $26,000 after purchasing an additional 380 shares in the last quarter. Carolina Wealth Advisors LLC raised its holdings in shares of Viavi Solutions by 83.2% during the 2nd quarter. Carolina Wealth Advisors LLC now owns 852 shares of the communications equipment provider’s stock worth $41,000 after buying an additional 387 shares in the last quarter. Corient Private Wealth LLC raised its holdings in shares of Viavi Solutions by 3.6% during the 4th quarter. Corient Private Wealth LLC now owns 11,400 shares of the communications equipment provider’s stock worth $204,000 after buying an additional 394 shares in the last quarter. Lido Advisors LLC lifted its position in shares of Viavi Solutions by 2.0% during the 4th quarter. Lido Advisors LLC now owns 24,555 shares of the communications equipment provider’s stock worth $438,000 after buying an additional 473 shares during the last quarter. Finally, Maryland State Retirement & Pension System lifted its position in shares of Viavi Solutions by 1.5% during the 4th quarter. Maryland State Retirement & Pension System now owns 32,572 shares of the communications equipment provider’s stock worth $580,000 after buying an additional 478 shares during the last quarter. Institutional investors own 95.54% of the company’s stock.

Viavi Solutions Stock Performance
NASDAQ VIAV opened at $38.56 on Friday. The company has a market capitalization of $9.51 billion, a price-to-earnings ratio of -257.05 and a beta of 1.21. The company has a quick ratio of 1.62, a current ratio of 1.85 and a debt-to-equity ratio of 0.27. Viavi Solutions Inc. has a twelve month low of $10.49 and a twelve month high of $60.43. The stock has a fifty day simple moving average of $42.68 and a 200 day simple moving average of $40.40.

Viavi Solutions (NASDAQ:VIAV – Get Free Report) last announced its earnings results on Wednesday, August 5th. The communications equipment provider reported $0.34 EPS for the quarter, topping the consensus estimate of $0.30 by $0.04. Viavi Solutions had a positive return on equity of 19.60% and a negative net margin of 2.00%.The firm had revenue of $443.10 million for the quarter, compared to the consensus estimate of $432.62 million. During the same period in the previous year, the business earned $0.13 EPS. The business’s quarterly revenue was up 52.5% compared to the same quarter last year. Viavi Solutions has set its Q1 2027 guidance at 0.400-0.420 EPS. Sell-side analysts expect that Viavi Solutions Inc. will post 1.32 EPS for the current year.
Insider Buying and Selling
In other Viavi Solutions news, EVP Paul Mcnab sold 1,595 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $37.37, for a total transaction of $59,605.15. Following the completion of the transaction, the executive vice president owned 13,876 shares in the company, valued at approximately $518,546.12. This trade represents a 10.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Laura A. Black sold 71,000 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $46.12, for a total transaction of $3,274,520.00. Following the transaction, the director owned 71,497 shares of the company’s stock, valued at approximately $3,297,441.64. The trade was a 49.83% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 1.80% of the company’s stock.

Analyst Upgrades and Downgrades
A number of research firms have issued reports on VIAV. Wall Street Zen upgraded Viavi Solutions from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 15th. Rosenblatt Securities reissued a “buy” rating and issued a $70.00 target price on shares of Viavi Solutions in a report on Wednesday. Needham & Company LLC reduced their price target on shares of Viavi Solutions from $68.00 to $60.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. Stifel Nicolaus lifted their price target on shares of Viavi Solutions from $60.00 to $65.00 and gave the company a “buy” rating in a report on Thursday, August 6th. Finally, Susquehanna upped their price objective on shares of Viavi Solutions from $65.00 to $66.00 and gave the stock a “positive” rating in a research report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $49.88.

Read Our Latest Report on Viavi Solutions

Viavi Solutions Company Profile
(Free Report)

Viavi Solutions Inc is a provider of network test, monitoring and assurance solutions for communications service providers, cable operators, enterprises and government agencies. The company offers an extensive portfolio of fiber optic and copper cable test and measurement instruments, wireless network testing equipment and network performance monitoring software. Its products are designed to support the deployment, maintenance and optimization of high-speed broadband, 5G wireless, data center and enterprise networks.

Viavi’s product offerings are organized into two primary segments: Network & Service Enablement and Optical Security & Performance.

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Laura A. Black, Director at Viavi Solutions Inc. (VIAV -10.57%), sold 71,000 shares of common stock on August 17, 2026, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$3.3 millionShares sold71,000Post-transaction shares (directly held)71,497Post-transaction value$3.31 millionTransaction value based on SEC Form 4 weighted average sale price ($46.12); post-transaction value based on August 17, 2026 market close ($46.26).

Key questionsWhat is the impact of this transaction on the director's total equity position?
Laura A. Black liquidated 50% of her direct equity stake through this transaction, retaining 71,497 shares with a market value of ~$3.31 million as of the August 17, 2026 market close.How does the current market valuation compare to the company's recent financial results?
Viavi Solutions maintains a market capitalization of $11.4 billion despite reporting a trailing twelve-month net loss of -$30.4 million on revenue of $1.5 billion.Are there any indirect holdings or derivative structures associated with this insider?
The current filing indicates that the director's entire reported interest is held directly, as there were no disclosures of indirect holdings via trusts or LLCs, and no stock options or other derivative securities were reported.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$46.26Market Capitalization$11.4 billionRevenue (TTM)$1.5 billionNet Income (TTM)-$30.4 millionCompany SnapshotViavi Solutions provides a comprehensive suite of network testing, monitoring, and assurance solutions that generate revenue across multiple customer segments including telecommunications service providers, equipment manufacturers, and governmental organizations.The company operates through three core business segments--Network Enablement, Network Intelligence, and Optical Security--which collectively deliver software, hardware, and service-based solutions that enable customers to build, maintain, and optimize network infrastructure.The company serves a diversified customer base spanning telecommunications service providers, network equipment manufacturers, original equipment manufacturers, governmental agencies, and the aviation industry, positioning itself as a critical infrastructure provider across multiple verticals.Viavi Solutions is a $11.4 billion market capitalization provider of mission-critical network testing and assurance solutions serving the global telecommunications and infrastructure sectors. The company operates with approximately 4,100 employees and generated $1.5 billion in revenue on a TTM basis, leveraging its diversified three-segment business model to address the complex requirements of network operators and equipment manufacturers. With its comprehensive portfolio spanning network enablement, intelligence, and optical security, Viavi maintains a competitive position as a specialized provider of infrastructure solutions essential to modern telecommunications and data center operations.

What this transaction means for investorsForm 4 filings do not list the reasons for a sale. However, Black sold around 50% of her position in Viavi, and such a significant reduction should concern investors.

The tech stock is up by around 329% over the last year alone. That does not take Viavi anywhere near the levels where it traded when it was known as JDS Uniphase during the dot-com boom. Still, it is the stock's largest upward move since the dot-com bust, possibly motivating Black to take some profits.

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Interestingly, now looks like a better time to buy than to sell. Viavi has experienced a revival as a boom in data center construction has increased demand for its network testing and monitoring solutions. Revenue rose by 40% yearly during fiscal 2026 (ended June 27).

Additionally, the only reason Viavi did not turn a profit was that it dramatically increased spending on research and development and selling, general, and administrative expenses. That move could pay off for investors later as it capitalizes on this AI-driven opportunity.

Such improvements should foster a bullish outlook on Viavi. Nonetheless, if investors see more large sales from Black or other insiders, it might be time to reconsider positions in Viavi.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Viavi Solutions. The Motley Fool has a disclosure policy.

Empowered Funds LLC grew its position in Viavi Solutions Inc. (NASDAQ: VIAV) by 3,233.8% during the undefined quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 235,334 shares of the communications equipment provider's stock after purchasing an additional 228,275 shares during the period. Empowered Funds LLC owned

Viavi Solutions (VIAV - Free Report) closed the last trading session at $42.99, gaining 16.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $59.67 indicates a 38.8% upside potential.

The average comprises nine short-term price targets ranging from a low of $41.00 to a high of $70.00, with a standard deviation of $10.23. While the lowest estimate indicates a decline of 4.6% from the current price level, the most optimistic estimate points to a 62.8% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

However, an impressive consensus price target is not the only factor that indicates a potential upside in VIAV. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in VIAVAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 28.9%, as three estimates have moved higher compared to no negative revision.

Moreover, VIAV currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much VIAV could gain, the direction of price movement it implies does appear to be a good guide.

Key Takeaways Viavi Solutions expects fiscal 2027 revenue to rise 23.5% to $1.874 billion.NSE revenue jumped 52.3% in fiscal 2026, with margins expanding sharply on higher volume and mix.VIAV trades above its five-year median multiple, limiting the upside case if growth or margins slow. Viavi Solutions Inc. (VIAV - Free Report) enters fiscal 2027 with a sharp improvement in revenue, earnings and operating margins. Fiscal 2026 revenues rose 40% year over year to $1.5 billion, while earnings increased 112.8% to $1 per share. The Zacks Consensus Estimate calls for fiscal 2027 revenues of $1.874 billion, implying 23.5% growth, while earnings are projected to rise to $1.22 per share.

The growth outlook is supported by data center and AI infrastructure demand, broader testing capabilities and the integration of Spirent assets. However, VIAV's valuation remains above its five-year median, while its Zacks Rank and Style Scores point to a less favorable quantitative setup.

VIAV's Growth Profile Is AcceleratingViavi's fiscal 2026 results show a meaningful change in the company's growth profile. Revenues reached $1.518 billion, up 40% from fiscal 2025, with Network and Service Enablement (NSE) revenues rising 52.3% to $1.183 billion. NSE accounted for 77.9% of total fiscal 2026 revenues.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate projects fiscal 2027 revenues of $1.874 billion, up 23.5% from fiscal 2026. The consensus EPS estimate is $1.22, compared with $1.00 in fiscal 2026. Estimates for fiscal 2028 call for revenues of $2.082 billion and EPS of $1.50, indicating that analysts expect the growth trajectory to extend beyond the current fiscal year.

The near-term outlook is also supported by management's fiscal first-quarter 2027 guidance. Viavi expects revenues of $450-$460 million and non-GAAP EPS of 40-42 cents. Management expects NSE revenues of $360-$368 million, compared with $353.9 million in the fiscal fourth quarter.

Viavi Solutions Shows Strong Earnings MomentumThe fiscal fourth quarter provided further evidence of operating leverage. Viavi reported revenues of $443.1 million, up 52.5% year over year, while non-GAAP EPS of 34 cents exceeded the Zacks Consensus Estimate of 30 cents by 13.3%. Revenue also topped the consensus mark by 2.3%.

Non-GAAP operating margin expanded to 24.0% from 14.4% a year earlier, a 960-basis-point improvement. Non-GAAP operating income more than doubled to $106.4 million. Higher revenues, increased volume and favorable product mix helped improve profitability.

NSE provided much of the operating leverage. Fourth-quarter NSE revenue increased 69.2% year over year to $353.9 million, while its gross margin rose 190 basis points to 64.1%. NSE operating margin reached 20%, up 1,540 basis points year over year.

VIAV's Valuation Limits the Upside CaseThe earnings outlook is improving, but the stock already reflects part of that growth. VIAV trades at 34.4X forward 12-month earnings, above its five-year median of 27.5X. The shares have traded between 12.3X and 65.9X over the past five years, placing the current multiple above the historical midpoint.
 

Image Source: Zacks Investment Research

The valuation premium becomes more relevant when compared with broader benchmarks. VIAV's forward earnings multiple is below the 40.2X average for the Zacks sub-industry but above the 21.5X sector multiple and 20.7X multiple for the S&P 500.

Among its industry peers, VIAV's quantitative profile is mixed. Knowles Corporation (KN - Free Report) carries a Zacks Rank #2 (Buy) and an Outperform recommendation, while ADTRAN Holdings (ADTN - Free Report) carries a Zacks Rank #4 (Sell) and an Underperform recommendation. VIAV's Zacks Rank #3 (Hold) therefore places it between these two peers on the Zacks short-term ranking scale. The comparison highlights that the industry's growth opportunities do not translate into equally favorable quantitative setups across individual stocks.

The valuation data also show a price-to-book multiple of about 7.0X. That leaves less room for execution setbacks if revenue growth or margin expansion slows. The Zacks price target of $47 reflects 8.9X forward 12-month earnings, substantially below the stock's current forward multiple.

Viavi Solutions Gains From Spirent IntegrationThe integration of acquired Spirent product lines has broadened Viavi's testing portfolio. The company cited contributions from certain Spirent product lines as one of the drivers of fourth-quarter NSE growth, alongside demand from the data center ecosystem and aerospace and defense markets.

The acquired high-speed Ethernet and network security testing assets also expand Viavi's addressable market across enterprise and data center applications. New offerings, including Observer Threat Forensics and the CyberFlood product family, extend the portfolio into network validation, security testing and performance assurance.

The opportunity is tied closely to rising network complexity. Viavi has added capabilities such as PCIe 7.0 analysis, the CyberFlood CF1000 and its Ultra Ethernet Transport validation platform to address AI infrastructure, encrypted traffic and next-generation networking requirements. These products expand the company's potential market, although the financial contribution from newer offerings and acquired assets will depend on customer adoption and execution.

VIAV's Rank and Style Scores Favor a Cautious ViewVIAV currently carries a Zacks Rank #3 (Hold). Its Zacks Style Scores include a Value Score of D, Growth Score of D, Momentum Score of D and VGM Score of F. The stock also has a Neutral Zacks Recommendation for the six- to 12-month horizon.

The Zacks Rank focuses on earnings estimate revision trends over the one- to three-month horizon, while the Zacks Style Scores provide complementary measures of value, growth and momentum. The VGM Score combines the weighted individual Style Scores.

The peer comparison further reinforces the cautious view. KN's Zacks Rank #2 (Buy) and Outperform recommendation contrast with ADTN's Zacks Rank #4 and Underperform recommendation, while VIAV sits in the middle with a Hold ranking. This suggests investors should evaluate VIAV not only on its strong operating growth but also on how its valuation and quantitative characteristics compare with other communication-components stocks.

The weak Style Scores are notable because the framework favors higher grades, with A and B scores providing the more favorable profiles. For a Zacks Rank #3 stock, the D scores and F VGM Score suggest that the company's improving fundamentals have not translated into an across-the-board favorable quantitative setup.

VIAV therefore presents a growth-versus-valuation decision rather than a straightforward buy case. Revenue and EPS are expected to grow at a healthy pace, margins are expanding and Spirent-related capabilities broaden the company's exposure to data center and cybersecurity testing. At the same time, the forward valuation sits above its five-year median, while the Zacks Rank #3 and weak Style Scores argue for waiting for a more favorable valuation or clearer improvement in the stock's quantitative profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

New Vertex 6.0 recreates real-world wireless conditions in the lab for complex cellular, Wi-Fi, military and aerospace RF technologies

, /PRNewswire/ -- VIAVI Solutions Inc. (VIAVI) (NASDAQ: VIAV) has announced the latest, enhanced version of the Vertex channel emulation platform. With 400 MHz instantaneous bandwidth and support for carrier frequencies up to 23.6 GHz, Vertex 6.0 is the industry's first channel emulator designed for next generation 6G and Wi‑Fi 7/8 testing, natively supporting newly defined 6G waveform requirements and surpassing Wi‑Fi 7/8 bandwidth requirements.

Vertex 6.0 Vertex 6.0 extends VIAVI's wireless portfolio by bringing real-world RF propagation into the lab, complementing the industry-leading TM500 network emulation platform and TeraVM application and security validation solutions. It is the first Vertex upgrade following VIAVI's acquisition of Spirent Communications plc's high-speed Ethernet, network security and channel emulation testing business.

Available in field-replaceable RF modules that integrate seamlessly into an existing 6U Vertex chassis, Vertex 6.0 builds on the 5G FR1/FR2 capabilities of the previous generation and now includes emulation for complex cellular, Wi-Fi, military and aerospace RF technologies. Combined with the VIAVI FR3 MIMO converter and raytracing with Integrated Sensing and Communication (ISAC), the platform acts as a digital twin for RF propagation for use cases including FR3, Wi-Fi 7, AI-RAN and ISAC.

"As wireless technologies become more complex, late-stage issues can present significant risks. Engineers need test environments that can accurately replicate real-world conditions and validate performance from the earliest stages of development," said Ian Langley, Senior Vice President, Wireless, Security and Applications Business Unit, VIAVI. "Vertex has been the platform of choice for the world's leading chipset, device and network equipment manufacturers for over a decade, and Vertex 6.0 brings the next leap in capabilities that address the requirements of complex cellular, Wi-Fi and other specialized topologies."

Each 6U Vertex chassis supports 36 RF ports, 256 digital links and up to 1.6 GHz of bandwidth. For cellular technologies, the platform supports FR3 bands with up to 1 GHz of bandwidth to meet the increased requirements of 6G networks. This includes multiuser (MU) MIMO with phase alignment and support for both TDD and FDD modes.

For Wi-Fi 7/8, it includes native support for 320 MHz and 4096 QAM, supporting 2x2 up to 8x8 configurations. The channel emulator also includes a wide range of modes for land-to-land, land-to-air and air-to-air transmissions, including for anechoic and reverberation OTA chambers, as well as for NTN (LEO, MEO and GEO), mesh, drone and ISAC networks.

About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test and measurement 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.

Media Inquiries:
Grand Bridges
Emma Jenkins 
[email protected]
+1 415 800 4529

SOURCE VIAVI Solutions

Key Takeaways VIAVI's Q4 revenues rose 52.5% year over year to $443.1 million, topping the $433M Zacks Consensus Estimate.Data centers account for about 50% of Network and Service Enablement revenues as 1.6T production ramps.Spirent integration is complete, with the business expected to grow at least 10% sequentially in the quarter. Viavi Solutions Inc. (VIAV - Free Report) ended fiscal 2026 with management pointing to data-center and aerospace-and-defense demand as the main forces carrying momentum into the new year. The company also signaled that its optical-test exposure is broadening as 1.6T, co-packaged optics and optical switching move further into production.

VIAVI reported fourth-quarter non-GAAP earnings of 34 cents per share, which beat the Zacks Consensus Estimate of 30 cents. Revenues of $443.1 million increased 52.5% year over year and surpassed the Zacks Consensus Estimate of $433 million.

VIAV Sees Data-Center Demand Staying StrongPresident and CEO Oleg Khaykin said the data-center ecosystem now represents about 50% of Network and Service Enablement revenue, with aerospace and defense accounting for about 17%.

President and CEO Khaykin said demand remains strong across lab, production and field instruments used by semiconductor, optical-module, equipment and hyperscale customers.

President and CEO Khaykin added that the core data-center business, excluding Spirent, more than doubled year over year, with production testing growing especially quickly.

VIAVI Guides to Higher Near-Term MarginsExecutive vice president and CFO Ilan Daskal guided fiscal first-quarter revenue to $450 million-$460 million and non-GAAP EPS to $0.40-$0.42.

Daskal also projected a 27.1% operating margin, plus or minus 40 basis points. An $11 million tariff refund received in July is expected to help reduce the cost of goods sold, while the extra week raises variable costs.

A Stifel analyst asked whether the 14-week quarter meaningfully boosts revenue. President and CEO Khaykin said the effect is de minimis because shipments are tied more closely to customers' quarter-end timing than to VIAVI's operating weeks.

VIAV Details the 1.6T Upgrade CycleA Needham analyst asked where VIAVI stands in the 1.6T adoption cycle. President and CEO Khaykin said 800G remains the largest-volume driver, but 1.6T is ramping rapidly as production activity increases.

President and CEO Khaykin said 1.6T may reach parity with 800G in fiscal 2027, while 800G and 400G should remain relevant because multiple technology generations operate in parallel.

President and CEO Khaykin also said the transition expands VIAVI's test opportunities as production capacity is added or replaced and new optical architectures enter deployment.

VIAVI Expands CPO and Optical-Switching ExposureA Rosenblatt Securities analyst pressed management on co-packaged optics, or CPO, and optical-circuit switching, or OCS. President and CEO Khaykin said CPO development is progressing and VIAVI has purchase orders tied to the technology.

President and CEO Khaykin said some OCS revenue is already reflected in the results, with most of the next step-up expected over the next several quarters as adoption broadens beyond early customers.

President and CEO Khaykin said VIAVI is generating some CPO revenue in the current quarter and that acceleration could begin in December. He said higher test intensity is required as customers manage yield and performance.

VIAV Says Spirent Integration Is CompleteA Northland Capital Markets analyst asked about Spirent's quarterly pattern and integration progress. President and CEO Khaykin said the acquired business performed in line with expectations and should grow at least 10% sequentially in the September quarter.

Executive Vice President and CFO Daskal said Spirent's seasonality remains intact, with the second half of the calendar year stronger than the first, and added that the business is producing good margins.

President and CEO Khaykin said the integration was completed by the end of the June quarter, including go-to-market and R&D actions. He added that roadmap integration is ahead of schedule.

VIAVI Keeps Focus on Diversified End MarketsPresident and CEO Khaykin's closing message centered on continued diversification into data-center and aerospace-and-defense markets, which he expects to support growth over the next several quarters.

President and CEO Khaykin remained cautious on wireless, describing demand as weak but stable, while service-provider products benefited from seasonal strength in fiber monitoring and cable-architecture migration.

Management emphasized optical-test expansion, PNT demand, operating leverage and execution on the Spirent roadmap as near-term priorities.

VIAV Zacks Signals Stay Neutral to WeakVIAV carries a Zacks Rank #3 (Hold), which represents a more neutral near-term earnings-estimate signal than the top-ranked #1 (Strong Buy) and 2 (Buy) categories. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

Its Value, Growth, Momentum and VGM Score are all D. Under the Zacks Style Scores framework, lower letter grades indicate less favorable characteristics, while the strongest combinations generally pair a Zacks Rank #1 or #2 with A or B Style Scores. The Zacks Rank can change as analysts revise earnings estimates following the newly reported results.

Viavi Solutions (NASDAQ:VIAV) reported fiscal fourth-quarter revenue and earnings above its guidance, supported by demand from data-center customers, aerospace and defense markets, and contributions from acquired Spirent product lines.

Fiscal fourth-quarter revenue totaled $443.1 million, exceeding the company’s guidance range of $427 million to $437 million. Revenue increased 8.9% sequentially and 52.5% from a year earlier. Non-GAAP operating margin was 24%, also above guidance, while non-GAAP earnings per share reached $0.34, compared with the company’s outlook of $0.29 to $0.31.

CFO Ilan Daskal said a $1.5 million tariff refund modestly benefited fourth-quarter operating margin. Lower interest expense and the tariff refund together contributed approximately $0.02 to quarterly EPS, he said.

Full-Year Growth and Balance-Sheet Actions For fiscal 2026, Viavi reported revenue of $1.518 billion, up 40% year over year. The Spirent product lines acquired during the second fiscal quarter contributed $145 million of full-year revenue. Full-year non-GAAP operating margin rose 630 basis points to 20.6%, while EPS increased to $1.00 from $0.47 in fiscal 2025.

During the fourth quarter, Viavi completed a follow-on offering of about 12.78 million shares at $45 per share, generating $575 million in gross proceeds. Daskal said the company used the proceeds to repay the remaining balance of its Term Loan B, with excess proceeds included in quarter-end cash.

Cash and short-term investments were $656.7 million at quarter-end, compared with $508 million at the end of the prior quarter. Operating cash flow was $66.7 million, up from $23.8 million in the year-earlier period. Viavi did not repurchase stock during the quarter as it prioritized debt management, though it repurchased about 2.7 million shares for approximately $30 million during fiscal 2026 in connection with an earlier convertible-note exchange. The company said it has nearly $170 million remaining under its authorized repurchase program.

NSE Leads Quarterly Performance Network Service Enablement, or NSE, revenue was $353.9 million in the fourth quarter, above the company’s $340 million to $348 million outlook. The segment’s revenue increased 69.2% year over year, including $47.7 million from Spirent product lines. NSE gross margin was 64.1%, and operating margin was 20%, compared with 4.6% a year earlier.

President and CEO Oleg Khaykin attributed the segment’s growth primarily to demand from the data-center ecosystem and aerospace and defense customers. He said the data-center opportunity encompasses optical products used in research and development labs, production testing, fiber monitoring and data-center build-outs.

“Our data center is now running at about 50% of the NSE revenue,” Khaykin said during the question-and-answer session. He estimated aerospace and defense at about 17% of NSE revenue, with the remaining business coming from service providers.

Khaykin said the company’s data-center business more than doubled year over year excluding Spirent. He identified production-related applications as a particularly fast-growing part of the opportunity, including testing for fiber-optic modules, fiber-optic cables and co-packaged optics, or CPO.

The company also launched what Khaykin described as the industry’s first validation solution for Ultra Ethernet transport, designed to support large-scale artificial intelligence and high-performance computing workloads.

While 800 gigabits-per-second technology remains the largest driver by volume, Khaykin said 1.6-terabit-per-second technology is ramping quickly. He expects 1.6 Tbps to potentially reach parity with 800 Gbps in 2027, while noting that multiple technology generations, including 400 Gbps, are likely to remain in use.

OSP Growth and Outlook Optical Security and Performance, or OSP, generated fourth-quarter revenue of $89.2 million, at the high end of guidance and up 9.6% year over year. Growth was driven by 3D sensing, anti-counterfeiting and other products. OSP gross margin increased 50 basis points to 55.2%, and operating margin was 40%.

For the first quarter of fiscal 2027, Viavi forecast consolidated revenue of $450 million to $460 million. NSE revenue is expected to be between $360 million and $368 million, while OSP revenue is projected at $90 million to $92 million. The company expects operating margin of 27.1%, plus or minus 40 basis points, and EPS of $0.40 to $0.42.

The first fiscal quarter will include an additional week, which the company said will create elevated variable costs but have minimal revenue impact because customer shipments are concentrated near calendar quarter-end. Guidance also includes an approximately $11 million tariff refund received in July, primarily benefiting first-quarter cost of goods sold. Viavi said the net impact of the tariff refund and the additional week is expected to add about 100 basis points to operating margin and about $0.02 to EPS.

Spirent Integration and Longer-Term Expectations Management said Spirent integration activities, including go-to-market and research-and-development rationalization, were completed by the end of the June quarter. Daskal said restructuring savings are being realized and that Spirent revenue is expected to rise about 10% sequentially in the September quarter, with December typically its strongest quarter.

Khaykin said the company expects continued growth from data centers and aerospace and defense over the next several quarters. He also said demand for wireless products remains “anemic,” though stable, while service-provider demand improved seasonally through fiber-monitoring and cable-architecture migration projects.

On profitability, Khaykin said NSE gross margins generally range from the low 60% range for certain field instruments to the high 70% range for some lab products. As NSE grows faster than OSP, he said the company expects its overall gross margin to trend higher. Management expects operating leverage from research and development and other operating expenses to support mid- to high-20% operating margins in the not-too-distant future.

Khaykin also said Viavi could reach a quarterly revenue run rate above $500 million sooner than previously anticipated, potentially sometime during calendar 2027 rather than by the exit of fiscal 2028.

About Viavi Solutions (NASDAQ:VIAV) Viavi Solutions Inc is a provider of network test, monitoring and assurance solutions for communications service providers, cable operators, enterprises and government agencies. The company offers an extensive portfolio of fiber optic and copper cable test and measurement instruments, wireless network testing equipment and network performance monitoring software. Its products are designed to support the deployment, maintenance and optimization of high-speed broadband, 5G wireless, data center and enterprise networks.

Viavi’s product offerings are organized into two primary segments: Network & Service Enablement and Optical Security & Performance.

Viavi Solutions Inc. (VIAV) Q4 2026 Earnings Call August 5, 2026 4:30 PM EDT

Company Participants

Vibhuti Nayar - Director of Investor Relations
Ilan Daskal - Executive VP & CFO
Oleg Khaykin - President, CEO & Director

Conference Call Participants

Ryan Koontz - Needham & Company, LLC, Research Division
Ruben Roy - Stifel, Nicolaus & Company, Incorporated, Research Division
Andrew Spinola - UBS Investment Bank, Research Division
Michael Genovese - Rosenblatt Securities Inc., Research Division
Timothy Savageaux - Northland Capital Markets, Research Division

Presentation

Operator

Good afternoon. My name is Kendra, and I will be your conference operator today. At this time, I would like to welcome everyone to Viavi Solutions Fiscal Fourth Quarter and Fiscal 2026 Earnings Call. Today's conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Vibhuti Nayar, Head of Investor Relations. Please go ahead.

Vibhuti Nayar
Director of Investor Relations

Thank you, Kendra. Good afternoon, everyone, and welcome to Viavi Solutions Fourth Quarter and Fiscal 2026 Earnings Call. My name is Vibhuti Nayar, Head of Investor Relations for Viavi Solutions. With me on today's call is Oleg Khaykin, our President and CEO; and Ilan Daskal, our CFO.

Please note, this call will include forward-looking statements about the company's financial performance. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations and estimations. We encourage you to review our most recent annual report and SEC filings, particularly the risk factors described in those filings. The forward-looking statements, including the guidance that we provide during this call and our expectations regarding the end markets and acquired business, are valid only as of today. Viavi undertakes no obligation to update these statements.

Please also note that unless we state otherwise, all results discussed on this

, /PRNewswire/ -- VIAVI (NASDAQ: VIAV) today reported results for its fiscal fourth quarter and fiscal year ended June 27, 2026 with the following highlights.

Fourth Quarter

Net revenue of $443.1 million, up $152.6 million or 52.5% year-over-year GAAP operating margin of 13.8%, up 850 bps year-over-year Non-GAAP operating margin of 24.0%, up 960 bps year-over-year GAAP net income of $32.7 million, up $24.7 million or 308.8% year-over-year Non-GAAP net income of $89.1 million, up $59.4 million or 200.0% year-over-year GAAP diluted earnings per share (EPS) of $0.13, up $0.09 or 225.0% year-over-year Non-GAAP diluted EPS of $0.34, up $0.21 or 161.5% year-over-year   Fiscal Year 2026

Net revenue of $1.5 billion, up $434.0 million or 40.0% year-over-year GAAP operating margin of 6.9%, up 160 bps year-over-year Non-GAAP operating margin of 20.6%, up 630 bps year-over-year GAAP net loss of $30.4 million, down $65.2 million or 187.4% year-over-year Non-GAAP net income of $243.8 million, up 137.1 or 128.5% year-over-year GAAP diluted EPS of $(0.13), down $0.28 or 186.7% year-over-year Non-GAAP diluted EPS of $1.00, up $0.53 or 112.8% year-over-year "VIAVI's fourth quarter and fiscal year 2026 financial performance has exceeded our expectations, driven by strong growth in many of our end markets. Our diversification strategy into datacenter ecosystem and aerospace and defense end markets has been a key growth driver for us during FY26, and we expect this strategy to continue driving our growth for the next several quarters," said Oleg Khaykin, VIAVI's President and Chief Executive Officer.

Financial Overview:

The tables below (in millions, except percentage and per share data) provide comparisons of quarterly results to prior periods, including sequential quarterly and year-over-year changes. A full reconciliation between the GAAP and non-GAAP measures included in the tables is contained in this release under the section titled "Use of Non-GAAP (Adjusted) Financial Measures."

Fiscal Fourth Quarter Ended June 27, 2026

GAAP Results

Q4

Q3

Q4

Change

FY 2026

FY 2026

FY 2025

Q/Q

Y/Y

Net revenue

$     443.1

$     406.8

$     290.5

8.9 %

52.5 %

Gross margin

59.1 %

57.5 %

56.3 %

160 bps

280 bps

Operating margin

13.8 %

6.1 %

5.3 %

770 bps

850 bps

Income from operations

$       61.3

$       24.8

$       15.3

147.2 %

300.7 %

Net income per share

0.13

0.03

0.04

333.3 %

225.0 %

Non-GAAP Results

Q4

Q3

Q4

Change

FY 2026

FY 2026

FY 2025

Q/Q

Y/Y

Gross margin

62.3 %

62.2 %

60.1 %

10 bps

220 bps

Operating margin

24.0 %

21.2 %

14.4 %

280 bps

960 bps

Income from operations

$     106.4

$       86.4

$       41.9

23.1 %

153.9 %

Earnings per share

0.34

0.27

0.13

25.9 %

161.5 %

Net Revenue by Segment

Q4

Q3

Q4

Change

FY 2026

FY 2026

FY 2025

Q/Q

Y/Y

Network and Service Enablement

$        353.9

$        321.5

$        209.1

10.1 %

69.2 %

Optical Security and Performance Products

89.2

85.3

81.4

4.6 %

9.6 %

Total

$        443.1

$        406.8

$        290.5

8.9 %

52.5 %

Fiscal Year Ended June 27, 2026

GAAP Results

FY 2026

FY 2025

Change Y/Y

Net revenue

$               1,518.3

$               1,084.3

40.0 %

Gross margin

57.7 %

57.3 %

40 bps

Operating margin

6.9 %

5.3 %

160 bps

Income from operations

$                 105.1

$                   57.5

82.8 %

Net (loss) income per share

(0.13)

0.15

(186.7) %

Non-GAAP Results

FY 2026

FY 2025

Change Y/Y

Gross margin

61.7 %

60.1 %

160 bps

Operating margin

20.6 %

14.3 %

630 bps

Income from operations

$                 312.9

$                 155.2

101.6 %

Earnings per share

1.00

0.47

112.8 %

Net Revenue by Segment

FY 2026

FY 2025

Change Y/Y

Network and Service Enablement

$                  1,182.9

$                    776.6

52.3 %

Optical Security and Performance Products

335.4

307.7

9.0 %

Total

$                  1,518.3

$                  1,084.3

40.0 %

Americas, Asia-Pacific and EMEA customers represented 45.0%, 30.9% and 24.1%, respectively, of total net revenue for the fiscal year ended June 27, 2026. As of June 27, 2026, the Company held $656.7 million in total cash, short-term investments and short-term restricted cash. As of June 27, 2026, the Company had $250.0 million aggregate principal amount of 0.625% Senior Convertible Notes and $400.0 million aggregate principal amount of 3.75% Senior Notes with a total net carrying value of $641.9 million. During the fiscal quarter and fiscal year ended June 27, 2026, the Company generated $66.7 million and $113.9 million, respectively, of cash flows from operations. Business Outlook for the First Quarter of Fiscal 2027

For the first quarter of fiscal 2027 ending October 3, 2026, the Company expects net revenue to be between $450 million to $460 million and non-GAAP EPS to be between $0.40 to $0.42.

With respect to our expectations above, the Company has not reconciled GAAP net income (loss) per share to non-GAAP EPS in this press release because it is unable to provide a meaningful or accurate estimate of certain reconciling items described in the "Use of Non-GAAP (Adjusted) Financial Measures" section below and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of certain items, including certain charges related to restructuring, acquisition, integration and related charges. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results. In addition, the Company believes such reconciliations would imply a degree of precision that may be confusing or misleading to investors.

Conference Call

The Company will discuss these results and other related matters at 1:30 p.m. Pacific Time on August 5, 2026 in a live webcast, which will also be archived for replay on the Company's website at https://investor.viavisolutions.com. The Company will post supplementary slides outlining the Company's latest financial results on https://investor.viavisolutions.com under the "Quarterly Results" section concurrently with this earnings press release. This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at www.sec.gov. 

About VIAVI Solutions

VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test and measurement, 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.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include any expectation, anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, profitability targets, cash flow and other financial metrics, as well as the impact and duration of certain trends and market position and conditions, including market stabilization and recovery. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, the Company's ability to predict future financial performance continues to be difficult due to, among other things: (a) continuing general limited visibility across many of our product lines; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) consolidations in our industry and customer base; (d) competitive pressures; (e) unforeseen changes or deceleration in the demand for current and new products, technologies, services, delays or unforeseen events in the roll-out of new industry platforms or evolving technology such as 3D sensing and customer purchasing delays due to macroeconomic conditions, tightening of expenditures or as they assess or transition to such new technologies and/or architectures, all of which limit near-term demand visibility, and could negatively impact potential revenue; (f) continued decline of average selling prices across our businesses; (g) notable seasonality and a significant level of in-quarter book-and-ship business; (h) various product and manufacturing transfers, site consolidations, product discontinuances and restructuring and workforce reduction plans, including the number of employees impacted by a restructuring plan, the estimated expenses the Company will recognize, the timing of these payments and expenses, and anticipated cost savings associated with such plans; (i) challenges in execution of business strategy; (j) financial projections and expectations, including profitability of certain business units, synergies, benefits and other matters related to the acquisition of the high-speed ethernet, network security and channel emulation testing business of Spirent Communications plc; (k) challenges integrating the businesses the Company has acquired and realizing all of the expected benefits and savings; (l) supply chain and materials constraints and the ability of our suppliers and contract manufacturers to meet production and delivery requirements to our forecasted demand; (m) potential disruptions or delays to our manufacturing and operations due to climate conditions and natural disasters in the regions where we operate, such as wildfires, drought conditions and related water shortages in Arizona, as well as wildfires in Northern California and related blackouts and power outages in that region; (n) the uncertain and ongoing impact to our supply chain of geopolitical tensions, such as the ongoing conflict between Russia and Ukraine and the instability in the Middle East, evolving global trade and tariff negotiations and the uncertain tariff landscape, sanctions and other trade measures imposed by domestic and foreign governments, adverse actions and escalating tensions with foreign governments, including China, and the possibility of escalation of "trade wars," cyber-attacks, and retaliatory measures; (o) the impact of infectious disease outbreaks, epidemics, and pandemics on our financial results, revenues, customer demand, business operations and manufacturing and on the business operations of our customers, contract manufacturers and suppliers; and (p) inherent uncertainty related to global markets, including inflationary pressures, recessions, stock price and equity market volatility, tightening monetary policy and liquidity, and the effect of such markets on demand for our products. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For more information on the risks and uncertainties associated with the Company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements contained in this press release are made as of the date thereof and the Company assumes no obligation to update such statements. We have not filed our Form 10-K for the year ended June 27, 2026. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file the Form 10-K.

Contact Information

Investors:
Vibhuti Nayar
408-404-6305
[email protected] 

Press:
Amit Malhotra
202-341-8624
[email protected] 

The following financial tables are presented in accordance with GAAP, unless otherwise specified.

-SELECTED PRELIMINARY FINANCIAL DATA -

VIAVI SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
PRELIMINARY

Three Months Ended

Years Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Net revenue

$          443.1

$          290.5

$        1,518.3

$        1,084.3

Cost of revenues

168.4

120.2

597.5

443.7

Amortization of acquired technologies

13.0

6.8

45.4

19.5

Gross profit

261.7

163.5

875.4

621.1

Operating expenses:

Research and development

69.8

57.2

262.7

208.7

Selling, general and administrative

124.3

89.7

469.2

349.4

Amortization of other intangibles

7.3

1.5

22.5

4.8

Restructuring and related (benefits) charges

(1.0)

(0.2)

15.9

0.7

Total operating expenses

200.4

148.2

770.3

563.6

Income from operations

61.3

15.3

105.1

57.5

Interest and other (expense) income, net

(7.4)

1.8

(41.4)

11.1

Interest expense

(10.4)

(7.5)

(47.4)

(30.0)

 Income before income taxes and equity investment earnings

43.5

9.6

16.3

38.6

Provision for income taxes

11.4

2.2

47.5

4.4

Equity investment earnings

0.6

0.6

0.8

0.6

Net income (loss)

$           32.7

$             8.0

$          (30.4)

$           34.8

Net income (loss) per share:

Basic

$           0.14

$           0.04

$          (0.13)

$           0.16

Diluted

$           0.13

$           0.04

$          (0.13)

$           0.15

Shares used in per share calculations:

Basic

239.3

223.2

229.5

222.5

Diluted

261.0

227.0

229.5

225.7

The preliminary financial statements are estimated based on our current information.

VIAVI SOLUTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)
PRELIMINARY

June 27, 2026

June 28, 2025

ASSETS

Current assets:

Cash and cash equivalents

$                647.8

$                423.6

Short-term investments

2.0

1.7

Restricted cash

6.9

3.7

Accounts receivable, net

351.3

261.0

Inventories, net

155.3

117.9

Prepayments and other current assets

93.2

77.3

Total current assets

1,256.5

885.2

Property, plant and equipment, net

224.5

231.9

Goodwill, net

700.7

595.7

Intangibles, net

377.6

131.6

Deferred income taxes

74.5

87.2

Other non-current assets

71.8

62.2

Total assets

$             2,705.6

$             1,993.8

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$                 92.2

$                 68.8

Accrued payroll and related expenses

98.4

63.6

Deferred revenue

101.9

74.1

Accrued expenses

27.3

28.7

Short-term debt

244.8

246.2

Other current liabilities

115.9

108.3

Total current liabilities

680.5

589.7

Long-term debt

397.1

396.3

Other non-current liabilities

179.5

227.6

Total liabilities

1,257.1

1,213.6

Total stockholders' equity

1,448.5

780.2

Total liabilities and stockholders' equity

$             2,705.6

$             1,993.8

The preliminary financial statements are estimated based on our current information.

VIAVI SOLUTIONS INC.
REPORTABLE SEGMENT INFORMATION
(in millions, unaudited)
PRELIMINARY

Three Months Ended June 27, 2026

Network and
Service
Enablement

Optical Security
and Performance
Products

Other Items (1)

Consolidated
GAAP Measures

Net revenue

$     353.9

$       89.2

$           —

$     443.1

Gross profit

$     227.0

$       49.2

$        (14.5)

$     261.7

Gross margin

64.1 %

55.2 %

59.1 %

Operating income

$       70.7

$       35.7

$        (45.1)

$       61.3

Operating margin

20.0 %

40.0 %

13.8 %

Three Months Ended June 28, 2025

Network and
Service
Enablement

Optical Security
and Performance
Products

Other Items (1)

Consolidated
GAAP Measures

Net revenue

$     209.1

$       81.4

$           —

$     290.5

Gross profit

$     130.0

$       44.5

$        (11.0)

$     163.5

Gross margin

62.2 %

54.7 %

56.3 %

Operating income

$        9.7

$       32.2

$        (26.6)

$       15.3

Operating margin

4.6 %

39.6 %

5.3 %

Year Ended June 27, 2026

Network and
Service
Enablement

Optical Security
and Performance
Products

Other Items (1)

Consolidated
GAAP Measures

Net revenue

$   1,182.9

$     335.4

$           —

$   1,518.3

Gross profit

$     762.0

$     175.2

$        (61.8)

$     875.4

Gross margin

64.4 %

52.2 %

57.7 %

Operating income

$     190.0

$     122.9

$      (207.8)

$     105.1

Operating margin

16.1 %

36.6 %

6.9 %

Year Ended June 28, 2025

Network and
Service
Enablement

Optical Security
and Performance
Products

Other Items (1)

Consolidated
GAAP Measures

Net revenue

$     776.6

$     307.7

$           —

$   1,084.3

Gross profit

$     488.0

$     163.6

$        (30.5)

$     621.1

Gross margin

62.8 %

53.2 %

57.3 %

Operating income

$      42.6

$     112.6

$        (97.7)

$      57.5

Operating margin

5.5 %

36.6 %

5.3 %

(1)

See Reconciliation of GAAP Measures from Continuing Operations to Non-GAAP Measures below for details of Other Items.

The preliminary financial schedules are estimated based on our current information.

Use of Non-GAAP (Adjusted) Financial Measures

The Company provides non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP EPS financial measures as supplemental information regarding the Company's operational performance and believes providing this additional information allows investors to see Company results through the eyes of management, to evaluate more clearly and consistently the Company's core operational performance and expenses and evaluate the efficacy of the methodology used by management to measure such performance. The Company uses the measures disclosed in this release to evaluate the Company's historical and prospective financial performance, as well as its performance relative to its competitors. Specifically, management uses these items to further its own understanding of the Company's core operating performance, which the Company believes represents its performance in the ordinary, ongoing and customary course of its operations. Accordingly, management excludes from core operating performance items such as those relating to certain purchase price accounting adjustments, amortization of acquisition related intangibles, amortization expense related to acquisition related inventory step-up, stock-based compensation, legal settlements, restructuring, changes in fair value of contingent consideration liabilities, certain investing and acquisition related expenses and other activities and income tax expenses or benefits that management believes are not reflective of such ordinary, ongoing and core operating activities. The non-GAAP adjustments are outlined below. 

Cost of revenues, costs of research and development and costs of selling, general and administrative: The Company's GAAP presentation of gross margin and operating expenses may include (i) additional depreciation and amortization from changes in estimated useful life and the write-down of certain property, plant and equipment and intangibles, (ii) charges such as severance, benefits and outplacement costs related to restructuring plans with a specific and defined term, (iii) costs for facilities not required for ongoing operations, and costs related to the relocation of certain equipment from these facilities and/or contract manufacturer facilities, (iv) stock-based compensation, including related employer payroll taxes, (v) amortization expense related to acquired intangibles, (vi) amortization expense related to acquisition related inventory step-up, (vii) changes in fair value of contingent consideration liabilities, (viii) acquisition related transaction and integration costs related to acquired entities, (ix) significant legal settlements and other contingencies and (x) other charges unrelated to our core operating performance comprised mainly of other costs and contingencies unrelated to current and future operations, including transformational initiatives such as the implementation of simplified automated processes, site consolidations, and reorganizations. The Company excludes these items in calculating non-GAAP operating margin, non-GAAP net income and non-GAAP EPS.

Non-cash interest expense and other expense: The Company excludes certain non-cash interest and other expenses, including loss on debt extinguishment, accretion of debt discount, and other non-cash activities that management believes are not reflective of such ordinary, ongoing and core operating activities, when calculating non-GAAP net income and non-GAAP EPS.

Income tax expense or benefit: The Company excludes certain non-cash tax expense or benefit items, such as (i) the utilization of net operating losses (NOLs) where valuation allowances were released, (ii) intra-period tax allocation benefit and (iii) the tax effect for amortization of non-tax deductible intangible assets, in calculating non-GAAP net income and non-GAAP EPS.

Non-GAAP financial measures are not in accordance with, preferable to, or an alternative for, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to non-GAAP operating income is operating income. The GAAP measure most directly comparable to non-GAAP operating margin is operating margin. The GAAP measure most directly comparable to non-GAAP net income is net income. The GAAP measure most directly comparable to non-GAAP EPS is earnings per share.

VIAVI SOLUTIONS INC.
RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS
TO NON-GAAP MEASURES
(in millions, except per share data)
(unaudited)
PRELIMINARY

The following tables reconcile GAAP measures to non-GAAP measures:

Three Months Ended

Years Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Gross
Profit

Gross
Margin

Gross
Profit

Gross
Margin

Gross
Profit

Gross
Margin

Gross
Profit

Gross
Margin

GAAP measures

$   261.7

59.1 %

$   163.5

56.3 %

$   875.4

57.7 %

$   621.1

57.3 %

Stock-based compensation

1.2

0.2 %

1.2

0.4 %

4.4

0.3 %

5.7

0.5 %

Employer payroll tax on employee share-based awards

—

— %

—

— %

0.4

— %

0.2

— %

Other charges unrelated to core operating performance (1)

0.3

0.1 %

0.4

0.1 %

5.5

0.3 %

0.8

0.1 %

Amortization of acquisition related inventory step-up

—

— %

2.6

0.9 %

6.1

0.4 %

4.3

0.4 %

Amortization of intangibles

13.0

2.9 %

6.8

2.4 %

45.4

3.0 %

19.5

1.8 %

Total related to Cost of Revenues

14.5

3.2 %

11.0

3.8 %

61.8

4.0 %

30.5

2.8 %

Non-GAAP measures

$   276.2

62.3 %

$   174.5

60.1 %

$   937.2

61.7 %

$   651.6

60.1 %

Three Months Ended

Years Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Operating Income

Operating Margin

Operating  Income

Operating Margin

Operating Income

Operating Margin

Operating Income

Operating Margin

GAAP measures

$    61.3

13.8 %

$    15.3

5.3 %

$   105.1

6.9 %

$    57.5

5.3 %

Stock-based compensation

14.2

3.2 %

12.6

4.3 %

55.4

3.6 %

53.1

4.9 %

Employer payroll tax on employee share-based awards

0.2

— %

—

— %

2.7

0.2 %

1.3

0.1 %

Change in fair value of contingent consideration

8.7

2.0 %

(3.4)

(1.2) %

33.0

2.2 %

(8.3)

(0.8) %

Acquisition and integration related charges

0.2

— %

5.6

1.9 %

12.6

0.8 %

22.3

2.1 %

Other charges unrelated to core operating performance (2)

2.5

0.6 %

1.1

0.4 %

14.2

1.0 %

1.3

0.1 %

Amortization of acquisition related inventory step-up

—

— %

2.6

0.9 %

6.1

0.4 %

4.3

0.4 %

Amortization of intangibles

20.3

4.6 %

8.3

2.9 %

67.9

4.5 %

24.3

2.2 %

Restructuring and related (benefits) charges

(1.0)

(0.2) %

(0.2)

(0.1) %

15.9

1.0 %

0.7

0.1 %

Litigation settlement

—

— %

—

— %

—

— %

(1.3)

(0.1) %

Total related to Cost of Revenues and Operating Expenses

45.1

10.2 %

26.6

9.1 %

207.8

13.7 %

97.7

9.0 %

Non-GAAP measures

$   106.4

24.0 %

$    41.9

14.4 %

$   312.9

20.6 %

$   155.2

14.3 %

Three Months Ended

Years Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Net
Income

Diluted
EPS

Net
Income

Diluted
EPS

Net (Loss) Income

Diluted
EPS

Net  Income

Diluted
EPS

GAAP measures

$    32.7

$    0.13

$     8.0

$    0.04

$   (30.4)

$   (0.13)

$    34.8

$    0.15

Items reconciling GAAP Net Income (Loss) and EPS to Non-GAAP Net Income and EPS:

Stock-based compensation

14.2

0.05

12.6

0.05

55.4

0.23

53.1

0.23

Employer payroll tax on employee share-based awards

0.2

—

—

2.7

0.01

1.3

0.01

Change in fair value of contingent consideration

8.7

0.03

(3.4)

(0.01)

33.0

0.14

(8.3)

(0.03)

Acquisition and integration related charges

0.2

—

5.6

0.02

12.6

0.05

22.3

0.10

Other charges unrelated to core operating performance (2)

2.5

0.01

1.1

—

14.2

0.06

1.3

0.01

Amortization of acquisition related inventory step-up

—

—

2.6

0.01

6.1

0.02

4.3

0.02

Amortization of intangibles

20.3

0.08

8.3

0.04

67.9

0.28

24.3

0.11

Restructuring and related (benefits) charges

(1.0)

—

(0.2)

—

15.9

0.07

0.7

—

   Litigation settlement

—

—

—

—

—

—

(1.3)

(0.01)

Non-cash interest expense and other expense (3)

10.4

0.04

1.2

0.01

57.0

0.23

4.7

0.02

Provision for (benefits from) income taxes 

0.9

—

(6.1)

(0.03)

9.4

0.04

(30.5)

(0.14)

   Total related to Net Income and EPS

56.4

0.21

21.7

0.09

274.2

1.13

71.9

0.32

Non-GAAP measures

$    89.1

$    0.34

$    29.7

$    0.13

$   243.8

$    1.00

$   106.7

$    0.47

Shares used in per share calculation for Non-GAAP EPS

261.0

227.0

242.9

225.7

Note: Certain totals may not add due to rounding.

(1)

Included in the three months ended and year ended June 27, 2026 are charges of $0.1 million and $3.7 million, respectively, related to the write off of property, plant and equipment and other charges unrelated to core operating performance.

(2)

Included in the three months ended June 27, 2026 are charges of $1.3 million related to the write off of property, plant and equipment, $0.1 million of accelerated depreciation and other charges unrelated to core operating performance. In addition, included in the year ended June 27, 2026 are $4.8 million of losses on disposal of long-lived assets, $2.1 million charge for restoration services for a VIAVI facility impacted by a fire, $0.4 million of accelerated depreciation and other charges unrelated to core operating performance. Included in the year ended June 27, 2025 is a gain of $0.9 million on the sale of assets previously classified as held for sale and other charges unrelated to core operating performance.

(3)

The Company incurred losses of $10.5 million and $56.7 million for the three months ended and year ended June 27, 2026, respectively, in connection with the extinguishment of certain 1.625% Senior Convertible Notes and extinguishment of the Term Loan B.

The preliminary financial schedules are estimated based on our current information.

VIAVI SOLUTIONS INC.
RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS
TO ADJUSTED EBITDA
(in millions, unaudited)
PRELIMINARY

Three Months Ended

Years Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

GAAP Net income (loss)

$            32.7

$             8.0

$           (30.4)

$            34.8

Interest and other expense (income), net (1)

7.4

(1.8)

41.4

(11.1)

Interest expense

10.4

7.5

47.4

30.0

Provision for income taxes

11.4

2.2

47.5

4.4

Equity investment earnings

(0.6)

(0.6)

(0.8)

(0.6)

Depreciation

10.3

9.6

40.4

38.4

Amortization

20.3

8.3

67.9

24.3

EBITDA

91.9

33.2

213.4

120.2

Restructuring and related (benefits) charges

(1.0)

(0.2)

15.9

0.7

Stock-based compensation

14.2

12.6

55.4

53.1

Employer payroll tax on employee share-based awards

0.2

—

2.7

1.3

Change in fair value of contingent consideration

8.7

(3.4)

33.0

(8.3)

Acquisition and integration related charges

0.2

5.6

12.6

22.3

Other charges (benefits) unrelated to core operating performance (2)

2.1

1.0

13.4

(0.4)

Amortization of acquisition related inventory step-up

—

2.6

6.1

4.3

Adjusted EBITDA

$           116.3

$            51.4

$           352.5

$           193.2

Note: Certain totals may not add due to rounding.

(1)

The Company incurred losses of $10.5 million and $56.7 million for the three months and year ended June 27, 2026, respectively, in connection with the extinguishment of certain 1.625% Senior Convertible Notes and extinguishment of the Term Loan B.

(2)

Included in the three months ended June 27, 2026 are charges of $1.3 million related to the write off of property, plant and equipment, and other charges unrelated to core operating performance. In addition, included in the year ended June 27, 2026 are $4.8 million of losses on disposal of long-lived assets, $2.1 million charge for restoration services for a VIAVI facility impacted by a fire and other charges unrelated to core operating performance. Included in the year ended June 27, 2025 is a gain of $0.9 million on the sale of assets previously classified as held for sale and other charges unrelated to core operating performance.

The preliminary financial schedules are estimated based on our current information.

SOURCE VIAVI Financials

On July 27, 2026, Viavi Solutions Inc (VIAV) shares fell 3.4% to $38.15, reflecting a larger trend as the stock has decreased by 19.9% over the past month. The

, /PRNewswire/ -- Viavi Solutions Inc. (VIAVI) (NASDAQ: VIAV) will announce its fiscal fourth quarter and fiscal year 2026 financial results for the period ended June 27, 2026, on Wednesday, August 5, 2026, after the close of market.

The Company will host an earnings call at 1:30 p.m. PT / 4:30 p.m. ET. A live webcast of the call and the replay will be available on the VIAVI website at https://investor.viavisolutions.com. The quarterly earnings press release, supplementary slides and historical financial tables will be posted under the "Quarterly Results" section.

To participate via telephone:

Toll-Free Dial-In Number:

1 (833) 461-5787

Toll Dial-In Number:

1 (585) 542-9983

Conference ID:

687 725 628

About VIAVI Solutions
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.

Investors Contact:
Vibhuti Nayar, 408-404-6305; [email protected]
Press Contact:
Amit Malhotra, 202-341-8624; [email protected]

SOURCE VIAVI Financials

For Immediate ReleaseChicago, IL – July 15, 2026 – Today, Zacks Equity Research Corning Inc. (GLW - Free Report) , Viavi Solutions Inc. (VIAV - Free Report) and Ooma, Inc. (OOMA - Free Report)

Industry: Communication Components

Link: https://www.zacks.com/commentary/2953241/3-communication-stocks-set-to-soar-on-inherent-sector-strength

The Zacks Communication - Components industry is likely to benefit from healthy demand trends driven by the fast-track 5G deployment and the transition to cloud and fiber networks. However, volatility in prices due to elevated customer inventory levels, high capital expenditure for infrastructure upgrades, margin erosion, volatility in oil prices and geopolitical conflicts has dented the industry’s profitability.

Of the industry players, Corning Inc., Viavi Solutions Inc. and Ooma, Inc. are likely to gain in the long run as demand for scalable infrastructure for seamless connectivity rises with the widespread proliferation of IoT, accelerated 5G rollout and fiber densification.

Industry DescriptionThe Zacks Communication - Components industry primarily comprises companies that provide diverse telecom products and services to develop scalable network architecture, demand-driven video solutions and broadband access equipment. These include various building blocks such as small cells, routers and antennas incorporated into equipment and facilities and subsequently utilized by service providers to build networks for end users.

Their product portfolio encompasses optical and copper connectivity products, hybrid fiber-coaxial equipment, edge routers, metro Wi-Fi, storage and distribution equipment for cable TV operators, modems, EMTAs (Embedded Multimedia Terminal Adapter), gateways, set-top boxes, analog and digital microphones, audio processors, glass substrates for LCD TVs and notebooks, and ceramic substrates for mobile and laboratory filtration products.

What's Shaping the Future of the Communication Components Industry?Software-Driven Data-Centric Connectivity: The firms are likely to benefit from a software-driven, data-centric approach that helps customers build their cloud architecture and enhance the cloud experience. The industry participants are well-poised for growth in the data-driven cloud networking business with proactive platforms and predictive operations. Fiber networks are essential for the growing deployment of small cells that bring the network closer to the user and supplement macro networks to provide extensive coverage.

Telecom service providers are increasingly leaning toward fiber optic cable to meet the burgeoning demand for cloud-based business data and video streaming services by individuals. Moreover, the fiber-optic cable network is vital for backhaul and last-mile local loops, which are required by wireless service providers to deploy the 5G network.

Network Convergence: With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, the industry is increasingly developing solutions with steady R&D investments to support wireline and wireless network convergence. These investments are likely to help minimize service delivery costs to adequately support broadband competition and expand rural coverage and wireless densification. The industry players have enabled enterprises to rapidly scale communications functionalities to a vast range of applications and devices with easy-to-use software application programming interfaces. The firms support high user volumes without affecting deliverability and cost-effectively eliminate performance degradation.

Waning Profits: Although higher infrastructure investments will eventually help minimize service delivery costs to support broadband competition and wireless densification, short-term profitability has largely been compromised. High technological obsolescence of most products has escalated operating costs with steady investments in R&D. High customer inventory levels and a conservative approach toward placing orders for high-value items remain other headwinds. Moreover, high raw material prices due to the United States-Iran war, volatility in oil prices due to restrictions across the Strait of Hormuz and the consequent economic fallout have affected the operation schedule of various firms.

Solid Demand Trends: As both consumers and enterprises are using networks more extensively, there is tremendous demand for quality networking components. Additionally, data consumption patterns are changing, with a growing propensity to consume more video content, creating the need for faster data transfer. Since optical networks are more efficient and most existing networks are copper-based, the demand for optical solutions is strong. The industry firms offer several products focused on the data center, with a typical portfolio comprising optical fiber, hardware, cables and connectors, enabling them to meet the evolving customer requirements and bridge the digital divide across the United States.

Zacks Industry Rank Indicates Bullish ProspectsThe Zacks Communication - Components industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #31, which places it among the top 13% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates rosy prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Before we present a few communication component stocks that are well-positioned to outperform the market based on a strong earnings outlook, let’s take a look at the industry’s recent stock market performance and valuation picture.

Industry Outperforms S&P 500, SectorThe Zacks Communication - Infrastructure industry has outperformed the S&P 500 composite and the broader Zacks Computer and Technology sector over the past year.

The industry has jumped a stellar 293.4% over this period compared with the S&P 500 and sector’s rise of 23.6% and 33.2%, respectively.

Industry's Current ValuationOn the basis of the trailing 12-month price-to-book (P/B), the industry is currently trading at 12.21 compared with the S&P 500’s 8.09X. It is also above the sector’s trailing 12-month P/B of 10.45X.

Over the past five years, the industry has traded as high as 15.4X, as low as 1.72X and at the median of 2.53X.

3 Communication Components Stocks to BuyCorning: New York-based Corning produces advanced glass substrates that are used in various applications across multiple markets, such as display technologies, optical communications, environmental technologies, specialty materials and life sciences businesses. The stock has surged 248.6% over the past year. The Zacks Consensus Estimate for the current and next fiscal-year earnings has been revised 14.3% and 40.2% upward, respectively, over the past year. It has a long-term earnings growth expectation of 23.9% and delivered an earnings surprise of 2.4%, on average, in the trailing four quarters.

Corning continues to focus on developing state-of-the-art cover materials, which have been deployed on more than 8 billion devices. It offers several products focused on the data center, with a portfolio consisting of optical fiber, hardware, cables and connectors, enabling it to create optical solutions to meet evolving customer needs. The rising adoption of innovative optical connectivity products for generative AI applications is expected to be a key growth driver for the company. Corning currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Viavi: Headquartered in Scottsdale, AZ, Viavi is a leading provider of network test, monitoring and service enablement solutions to diverse sectors across the globe. It offers products with end-to-end network visibility and analytics that help build, test, certify, maintain and optimize complex physical and virtual networks. It delivered an earnings surprise of 13%, on average, in the trailing four quarters. The Zacks Consensus Estimate for the current and next fiscal-year earnings has been revised 69.1% and 106.8% upward, respectively, over the past year.

The integration of Spirent’s high-speed Ethernet and network security testing assets continues to contribute to revenue growth and broadens Viavi’s addressable market across enterprise and data center applications. Investments in PCIe 7.0 analysis capabilities and the launch of the CyberFlood CF1000 platform expand Viavi’s ability to validate AI inference workloads, encrypted traffic and next-generation data center infrastructure. It strengthens exposure to long-term AI-related network testing demand and supports continued growth in lab, production and field-testing solutions. This Zacks Rank #2 company is up 300.4% in the past year.

Ooma: Headquartered in Sunnyvale, CA, Ooma offers cloud-based communications solutions, smart security and other connected services. Its smart software-as-a-service and unified-communications-as-a-service platforms serve as a hub for seamless communications and networking infrastructure applications. This Zacks Rank #2 firm delivered an earnings surprise of 14.2%, on average, in the trailing four quarters. The Zacks Consensus Estimate for the current and next fiscal-year earnings has been revised 40.2% and 17.2% upward, respectively, over the past year. It has a VGM Score of A. The stock was up 68.2% in the past year.

Ooma’s focus on small business customers with simple, easy-to-use interfaces that can be implemented quickly without IT support for an integrated business connectivity solution is likely to drive healthy growth momentum. Its low-cost fixed line that reportedly offers faster emergency access services is expected to gain traction, while increased penetration within enterprise markets with customized offerings is expected to bear fruit.

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