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.
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It has been about a month since the last earnings report for Viavi Solutions (VIAV - Free Report) . Shares have lost about 17.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Viavi Solutions due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Viavi Solutions Inc. before we dive into how investors and analysts have reacted as of late.
VIAV Q4 Earnings Top Estimates on Data Center, A&D Strength
Viavi reported strong fourth-quarter fiscal 2026 results, with earnings and revenues exceeding the Zacks Consensus Estimate. Non-GAAP earnings of 34 cents per share beat the consensus estimate of 30 cents by 13.33%, while revenues of $443.1 million topped the consensus mark of $433 million by 2.34% and increased 52.5% year over year.
The robust performance was driven by sustained demand from the data center ecosystem and aerospace, and defense markets, along with contributions from acquired Spirent product lines. The Network and Service Enablement (NSE) segment remained the primary growth engine, delivering nearly 70% year-over-year revenue growth.
VIAV Delivers Broad-Based Segment Growth
Network and Service Enablement generated revenues of $353.9 million, up 69.2% year over year and above management's guidance range. Growth reflected continued strength in lab, production and field products serving the data center ecosystem, contributions from Spirent product lines and healthy aerospace and defense demand.
Optical Security and Performance Products (OSP) revenues increased 9.6% year over year to $89.2 million, reaching the high end of guidance. Growth was fueled by stronger demand for 3D sensing products as well as anti-counterfeiting and other optical products, demonstrating continued momentum across the company's second operating segment.
Viavi Expands Margins on Favorable Mix
Profitability improved meaningfully during the quarter as higher revenues and a favorable product mix boosted margins. Non-GAAP gross margin expanded to 62.3% from 60.1% a year earlier, while non-GAAP operating margin climbed 960 basis points year over year to 24.0%, exceeding the high end of management's guidance.
Non-GAAP operating income more than doubled year over year to $106.4 million. Earnings benefited from approximately 2 cents per share from lower interest expense following debt reduction and tariff refunds received during the quarter.
VIAV Strengthens Balance Sheet & Cash Flow
Viavi ended the quarter with $656.7 million in total cash, short-term investments and restricted cash. Cash flow from operating activities reached $66.7 million during the quarter, while capital expenditures totaled $11.1 million.
The company strengthened its balance sheet through capital allocation initiatives. During the quarter, it completed a follow-on equity offering that generated approximately $575 million in gross proceeds. The proceeds were primarily used to retire the remaining $450 million balance of its Term Loan B, while the remaining funds enhanced liquidity. The company did not repurchase shares during the quarter as debt reduction remained the priority, although nearly $170 million remains available under its existing authorization.
Viavi Sees Healthy Demand Across End Markets
Management highlighted that demand from the data center ecosystem remains exceptionally strong, supported by investments in AI infrastructure, high-performance computing, optical networking and hyperscale data center deployments. The recently acquired Spirent high-speed Ethernet product lines continued to perform well and contributed meaningfully to quarterly growth.
The aerospace and defense business delivered another quarter of solid growth, particularly for positioning, navigation and timing products, which management expects to remain a multiyear growth driver. Meanwhile, service provider demand improved seasonally, supported by fiber monitoring deployments and cable network upgrades, although wireless demand remained stable at relatively subdued levels.
VIAV Guides for Another Sequentially Strong Quarter
For the first quarter of fiscal 2027, management projects revenues to be between $450 million and $460 million with non-GAAP earnings of 40-42 cents per share. The outlook implies sequential growth, driven by continued strength in both operating segments.
The company expects NSE revenues to be between $360 million and $368 million, supported by continued momentum across data center and aerospace and defense markets, while OSP revenues are projected to be in the range of $90-$92 million on seasonally stronger demand for 3D sensing products. Management forecasts a non-GAAP operating margin of approximately 27.1%, benefiting from tariff refunds despite additional operating costs associated with the extra week in the fiscal quarter.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 47.67% due to these changes.
VGM ScoresCurrently, Viavi Solutions has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Viavi Solutions has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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.
Key Takeaways VIAVI Solutions is benefiting from a diverse portfolio that reduces reliance on any single end market.Data center infrastructure and aerospace & defense are expected to be key near-term growth drivers.New testing capabilities and acquisitions are broadening VIAVI Solutions' reach across key applications. VIAVI Solutions (VIAV - Free Report) is benefiting from its comprehensive and diverse product offerings. Its diversified portfolio is ensuring sustained growth by reducing its reliance on any single end market.
VIAVI's Network and Service Enablement (NSE) business is witnessing strong demand for lab, production and field instruments tied to data center buildouts. New PCIe 7.0 analysis and CyberFlood CF1000 capabilities expand Viavi’s ability to validate AI inference workloads, encrypted traffic and next-generation infrastructure. The integration of Spirent’s high-speed Ethernet and network security testing assets continues to broaden Viavi’s addressable market across enterprise and data center applications. The acquisition of Inertial Labs has also boosted its portfolio strength.
Beyond the AI infrastructure space, the company also boasts a strong presence in the aerospace and defense space. Strong demand for positioning, navigation and timing (PNT) products is supporting growth in this domain. The company is also working on expanding into 6G, Wi-Fi, AI-RAN and specialized RF testing to expand its portfolio’s addressable market.
It is to be noted that, in the near term, data center infrastructure and aerospace & defense will be the major growth drivers for the company. However, the company continues to face risks related to product-mix fluctuations and competitive pressures across each of its served markets.
Other Tech Firm with Diverse Portfolio OfferingJabil, Inc.’s (JBL - Free Report) focus on end-market and product diversification remains a key long-term catalyst. Management continues to target a balanced portfolio so that no individual product or product family becomes an outsized contributor to operating income or cash flow. This strategy improves the stability of earnings through industry cycles while allowing Jabil to capture opportunities across AI infrastructure, healthcare, industrial and automation markets. Moreover, Jabil’s organizational structure remains aligned with major end markets, allowing the company to build deeper domain expertise and respond more quickly to customer demand.
Keysight Technologies, Inc. (KEYS - Free Report) is also placing strong emphasis on product diversification. Keysight’s Communication Solutions Group segment is benefiting from healthy growth in both wireline and wireless, AI data center expansion, and rising investments in next-generation wireless (5G/6G and Non Terrestrial Network). Strong AI-related investments, higher demand for wafer and lithography solutions for advanced chip development and growth in software-defined vehicles, cybersecurity and EV charging solutions are driving growth in the Electronic Industrial Solutions Group.
VIAV’s Price Performance, Valuation and EstimatesVIAVI has gained 240.9% in the past year compared with the Electronics - Measuring Instruments industry’s growth of 196.8%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 24.55 forward earnings, lower than 38.52 for the industry and its mean of 39.43.
Image Source: Zacks Investment Research
The company’s earnings estimates for 2026 and 2027 have improved over the past 60 days.
Image Source: Zacks Investment Research
VIAV sports a Zacks Rank #1 (Strong Buy) at present. 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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Viavi Solutions NASDAQ: VIAV expects rising complexity in optical networking, co-packaged optics and aerospace applications to expand the company's testing and measurement opportunities, executives said during the Rosenblatt Age of AI Technology conference.
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.
Today's Change
(
-10.57
%) $
-4.89
Current Price
$
41.37
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.
Viavi Solutions Inc. (VIAV) Rosenblatt's 6th Annual Technology Summit: The Age of AI (Part II) August 17, 2026 5:00 PM EDT
Company Participants
Oleg Khaykin - President, CEO & Director
Ilan Daskal - Executive VP & CFO
Conference Call Participants
Michael Genovese - Rosenblatt Securities Inc., Research Division
Presentation
Michael Genovese
Rosenblatt Securities Inc., Research Division
Hi, everyone. Good afternoon. Welcome to the Rosenblatt Age of AI Technology Conference. This is a fireside chat with Viavi Solutions. I'm Mike Genovese, the cloud and communications equipment analyst. Super pleased today to be joined by the management team of Viavi Solutions, Oleg Khaykin and Ilan Daskal. And we also have Vibhuti Nayar from IR on the panel as well, just off camera right now. So we've got the whole team and hi, guys. Great to see you.
Oleg Khaykin
President, CEO & Director
Mike, good to see you again. Been a long of time. A whole week.
Question-and-Answer Session
Michael Genovese
Rosenblatt Securities Inc., Research Division
Well, bear with me here because my first questions tend to be a little bit wordy and have a little bit of wind up to them. But I just want to level set the audience here because you just reported fourth quarter, as you said, fourth quarter '26, the June quarter. And you said that data center within your NSE segment, your big segment, was about 50% of the revenues, aerospace and defense, about 17% and telco is the rest. So given that, I mean, it looks like to investors that 800G test transceiver-type testing is probably the highest volume lab and production driver. And there's a surge in transceiver production across North America and Asia. So what do you view your market share is in 800G and Ethernet testing today? How does that differ between the Western and the Asian transceiver makers? And how much tailwind remains in upgrading from 400 to 800 before 800 peaks?
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
Handelsbanken Fonder AB lessened its stake in shares of Viavi Solutions Inc. (NASDAQ: VIAV) by 12.9% in the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 77,310 shares of the communications equipment provider's stock after selling 11,500 shares
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 delivered 40% fiscal 2026 revenue growth and a 112.8% rise in non-GAAP EPS.NSE revenue surged 52.3%, driven by data center demand, aerospace and defense, and Spirent products.Weak wireless demand, variable cash flow and share dilution temper the bullish case despite strong growth.
Shares of Viavi Solutions Inc. (VIAV - Free Report) have declined 18.2% in the past three months despite a sharp improvement in the company's operating performance. Fiscal 2026 revenues rose 40% year over year to $1.5 billion, while non-GAAP earnings per share increased 112.8% to $1.00. Fourth-quarter revenue climbed 52.5% to $443.1 million, and earnings rose 161.5% to 34 cents per share.
The disconnect raises a key question for investors: Can accelerating demand and expanding margins support VIAV after its pullback, or will concerns about wireless testing, cash generation and share dilution continue to weigh on the shares?
Image Source: Zacks Investment Research
VIAV's 3-Month Decline Tests the Growth StoryViavi's fiscal 2026 results provide a strong fundamental backdrop despite the recent decline. Fourth-quarter revenues, non-GAAP operating margin and earnings exceeded the high end of management's guidance. Non-GAAP operating margin reached 24%, up 960 basis points year over year, while earnings of 34 cents per share were 13.3% above the Zacks Consensus Estimate.
The improvement extended through the full year. Fiscal 2026 non-GAAP operating income increased 101.6% to $312.9 million, while the non-GAAP operating margin expanded to 20.6% from 14.3% a year earlier. Higher revenue and favorable product mix drove the improvement.
VIAV's recent price performance also needs context. The stock is down 18.2% over the past three months but has gained 290.8% over the past year. Over the same three-month period, the Zacks sub-industry has declined 13.9%, while the Zacks Computer and Technology sector gained 2.6%.
Viavi Solutions Still Benefits From AI InfrastructureData center and AI infrastructure demand remain important growth drivers for Viavi. The company said fiscal 2026 growth was driven mainly by demand for lab, production and field products tied to the data center ecosystem, along with aerospace and defense products. Acquisitions of certain Spirent product lines and Inertial Labs also contributed to growth.
The Network and Service Enablement (NSE) segment has become the company's main growth engine. NSE revenues increased 52.3% in fiscal 2026 to $1.18 billion and accounted for 77.9% of total revenue. Fourth-quarter NSE revenue jumped 69.2% year over year to $353.9 million, driven by demand for lab, production and field products, aerospace and defense products and acquired Spirent product lines.
Viavi is also expanding its testing portfolio for AI infrastructure. Recent product launches include an Ultra Ethernet Transport validation platform and the CyberFlood CF1000, a 400G security and application performance testing platform designed for AI data center infrastructures. These offerings broaden the company's exposure to high-speed networking and AI-related testing requirements.
VIAV's Earnings Momentum Supports the Bull CaseThe pace of NSE growth is central to the bullish case. Fourth-quarter NSE revenues of $353.9 million exceeded the company's $340-$348 million guidance range. NSE gross margin increased 190 basis points year over year to 64.1%, while operating margin reached 20%.
Management expects the momentum to continue into fiscal 2027. Viavi expects first-quarter revenues of $450-$460 million and non-GAAP EPS of 40-42 cents. The company also expects OSP revenue of $90-$92 million and operating margin of 43.2% for the quarter.
The Zacks Consensus Estimate projects fiscal 2027 revenues of $1.874 billion and EPS of $1.22 compared with $1.518 billion and $1, respectively, in fiscal 2026.
Among industry peers, Knowles Corporation (KN - Free Report) carries an Outperform recommendation, while ADTRAN Holdings, Inc. (ADTN - Free Report) has an Underperform recommendation, providing additional context for investors evaluating VIAV's position within the Communication - Components industry.
Viavi Solutions Faces Wireless and Cash Flow RisksThe growth story has several offsets. Management has indicated that wireless test demand remains weak, with no near-term recovery expected. Fiscal fourth-quarter growth was driven primarily by data center, aerospace and defense demand, leaving the traditional wireless market with limited visibility.
Cash generation also warrants attention. Viavi generated $113.9 million in operating cash flow and $82.8 million in free cash flow in fiscal 2026. Fourth-quarter operating cash flow improved to $66.7 million from negative $26.3 million in the prior quarter, but the sharp sequential swing highlights the sensitivity of cash conversion to working capital and other cash requirements.
Capital allocation creates another trade-off. Viavi raised $575 million through a follow-on equity offering in fiscal fourth-quarter 2026 and issued approximately 12.78 million shares at $45 per share. The company used $450 million of the proceeds to repay Term Loan B. While the debt reduction strengthens the balance sheet, the larger share base spreads future earnings across more shares. Basic shares used in fourth-quarter EPS calculations rose 7.2% year over year, while diluted shares increased 15%.
OSP profitability is another variable to monitor. OSP revenue increased 9% in fiscal 2026, but its gross margin declined to 52.2% from 53.2% a year earlier, indicating that product mix can affect profitability even when revenue is growing.
VIAV's Rank Signals Caution Despite GrowthVIAV currently carries a Zacks Rank #3 (Hold) and a Neutral long-term Zacks Recommendation. Its Zacks Style Scores are a Value Score of D, Growth Score of D, Momentum Score of D and VGM Score of F.
The Zacks Rank is designed to reflect trends in earnings estimate revisions over a one- to three-month horizon, while Zacks Style Scores serve as complementary indicators covering value, growth and momentum characteristics. The VGM Score combines the three individual Style Scores.
For a Zacks Rank #3 stock, the Style Score hierarchy still matters. The Style Score framework favors higher grades, with A and B scores offering the most favorable profile. VIAV's D scores and F VGM Score therefore temper the bullish fundamental case. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
VIAV's three-month decline does not by itself establish a buying opportunity. Fiscal 2026 results show accelerating revenue, strong NSE growth and expanding margins, while fiscal 2027 guidance points to further earnings growth. However, weak wireless demand, variable cash generation, share dilution and the stock's Zacks Rank #3 argue for a measured view as investors weigh the improving fundamentals against the risks.
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.
Key Takeaways Viavi Solutions' Q4 revenues jumped 52.5% as AI, data centers, aerospace and defense drove demand.VIAV expects fiscal Q1 2027 revenues of $450-$460 million and non-GAAP EPS of 40-42 cents.Margins expanded sharply, while new AI testing platforms broaden Viavi's network validation capabilities. Viavi Solutions Inc. (VIAV - Free Report) is benefiting from rising AI infrastructure investment as demand for data center networking, testing and cybersecurity solutions drives growth. Fourth-quarter fiscal 2026 revenues rose 52.5% year over year to $443.1 million, while non-GAAP EPS reached 34 cents. Data center demand, aerospace and defense activity and contributions from acquired Spirent product lines supported the results.
VIAV's Q4 Results Confirm Strong AI ExposureNetwork and Service Enablement (NSE) revenues increased 69.2% year over year to $353.9 million. Growth was driven by demand for products serving the data center ecosystem, aerospace and defense demand and contributions from Spirent product lines. Management continues to cite AI infrastructure, high-performance computing, optical networking and hyperscale data centers as key demand drivers.
Viavi Solutions Guides for Another Strong QuarterViavi expects first-quarter fiscal 2027 revenues of $450-$460 million and non-GAAP EPS of 40-42 cents. NSE revenue is projected at $360-$368 million, while OSP revenue is expected at $90-$92 million.
The Zacks Consensus Estimate calls for fiscal 2027 revenues of $1.874 billion, up 23.5% from fiscal 2026, with EPS expected to rise to $1.22 from $1.
VIAV's Margins Expand on Scale and MixFourth-quarter non-GAAP operating margin increased to 24.0% from 14.4% a year earlier, a 960-basis-point expansion. NSE operating margin reached 20.0%, up 1,540 basis points year over year.
Management expects consolidated non-GAAP operating margin of 27.1% in first-quarter fiscal 2027, including a 100-basis-point benefit from tariff refunds.
Viavi Solutions Adds New AI Testing CapabilitiesViavi launched its Ultra Ethernet Transport validation platform in June 2026 to support next-generation AI networks. In May, it introduced the CyberFlood CF1000, a 400G security and application performance testing platform designed for AI data center infrastructure.
The launches expand Viavi's capabilities in AI network validation, encrypted traffic testing and cybersecurity while complementing the acquired Spirent portfolio. Their contribution will depend on customer adoption and execution.
VIAV's Rank Supports a Balanced Event ViewVIAV carries a Zacks Rank #3 (Hold), with a Value Score of D, Growth Score of D, Momentum Score of D and VGM Score of F. The Zacks Style Scores complement the Zacks Rank by evaluating value, growth and momentum characteristics.
Viavi's AI exposure and margin expansion support the growth case, although its Zacks Rank #3 and weak Style Scores warrant caution. Within the same industry, Knowles Corporation (KN - Free Report) has an Outperform recommendation, while ADTRAN Holdings, Inc. (ADTN - Free Report) carries an Underperform recommendation, offering some context on the differing outlooks across peers.
Viavi's AI exposure and margin expansion support the growth case, but the Zacks Rank #3 and weak Style Scores provide a cautionary counterweight to the strong quarterly results. 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:
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Paul McNab, EVP, Chief Mktg & Stgy Officer, sold 1,595 shares of Viavi Solutions Inc. (VIAV +2.85%) on August 10, 2026. SEC Form 4 filing.
Transaction summaryMetricValueShares sold1,595Transaction value~$60,000Post-transaction shares (directly held)13,876Post-transaction value$516,187.20Transaction value based on SEC Form 4 weighted average sale price ($37.37); post-transaction value based on August 10, 2026 market close ($37.20).
Company snapshotViavi Solutions provides network testing, monitoring, and assurance solutions to a global client base including telecommunication providers, enterprises, and governmental organizations.The company operates through three primary segments: Network Enablement, Service Enablement, and Optical Security and Performance Products.Key questionsWhat is the impact of this transaction on the insider's total equity exposure?
Paul McNab reduced his direct position by 10%, liquidating 1,595 shares while retaining a balance of 13,876 shares. This level of activity suggests a routine liquidity event rather than a fundamental shift in the officer's long-term outlook on the firm.How does the execution price compare to recent market performance?
The shares were sold at $37.37 per share, which was slightly higher than the $37.20 market close on the transaction date of August 10, 2026. The stock has demonstrated significant momentum, posting a 240% increase over the year preceding this sale.Are there any indirect holdings or derivative structures involved in this filing?
This filing does not report any indirect ownership or derivative securities. The insider's current disclosed equity exposure consists entirely of the 13,876 shares held directly as common stock.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$37.20Market Capitalization$8.7 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 primarily through sales to telecommunications service providers, network equipment manufacturers, and original equipment manufacturers.The company operates through three core business segments—Network Enablement, Service Enablement, and Optical Security—which collectively serve customers across telecommunications, enterprise, manufacturing, government, and aviation sectors.Viavi's customer base includes global telecommunications service providers, businesses requiring network infrastructure, network equipment manufacturers, original equipment manufacturers, governmental organizations, and the aviation industry.Viavi Solutions is a $8.7 billion market capitalization provider of critical network infrastructure solutions serving the global telecommunications and enterprise markets. The company has demonstrated significant momentum with a one-year share price appreciation of 240.35%, reflecting investor confidence in its positioning within the expanding network testing and assurance market. With 3,600 employees and TTM revenues of $1.5 billion, Viavi maintains a diversified customer base spanning service providers, equipment manufacturers, and government entities, positioning itself as an essential partner in network modernization and 5G deployment initiatives.
What this transaction means for investorsAs previously mentioned, McNab’s sale of Viavi was likely a routine liquidity event that probably does not affect his long-term view on the stock.
Given Viavi’s performance, one can understand why McNab kept 90% of his holdings. The stock has risen by around 240% over the last year alone as AI and data center demand have forced companies to improve their optical connectivity.
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That demand led to over $1.5 billion in revenue in fiscal 2026 (ended June 27), a 40% yearly increase. Moreover, the only reason it lost money was the company’s increased spending on both research and development and selling, general, and administrative expenses. While this reduces profitability now, it could lead to greater profits later amid the company’s revival.
Moreover, even though Viavi pulled back by more than 30% from its recent high, the recent run in the stock is its best performance since the dot-com boom, when it was known as JDS Uniphase. Thus, as long as the AI boom continues, it is likely that Viavi and insiders like McNab will continue to benefit from a long-awaited recovery in this tech stock.
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.
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.
Key Takeaways VIAV Q4 earnings and revenue surpass estimates as NSE growth was driven by data center and A&D demand.Viavi expanded gross and operating margins on higher revenues, favorable mix and lower interest expense.VIAV expects fiscal Q1'27 revenues of $450M-$460M & EPS of 40-42 cents, driven by continued segment momentum. Viavi Solutions Inc. (VIAV - Free Report) reported strong fourth-quarter fiscal 2026 results, with earnings and revenues exceeding the Zacks Consensus Estimate. Non-GAAP earnings of 34 cents per share beat the consensus estimate of 30 cents by 13.33%, while revenues of $443.1 million topped the consensus mark of $433 million by 2.34% and increased 52.5% year over year.
The robust performance was driven by sustained demand from the data center ecosystem and aerospace, and defense markets, along with contributions from acquired Spirent product lines. The Network and Service Enablement (NSE) segment remained the primary growth engine, delivering nearly 70% year-over-year revenue growth.
VIAV Delivers Broad-Based Segment GrowthNetwork and Service Enablement generated revenues of $353.9 million, up 69.2% year over year and above management's guidance range. Growth reflected continued strength in lab, production and field products serving the data center ecosystem, contributions from Spirent product lines and healthy aerospace and defense demand.
Optical Security and Performance Products (OSP) revenues increased 9.6% year over year to $89.2 million, reaching the high end of guidance. Growth was fueled by stronger demand for 3D sensing products as well as anti-counterfeiting and other optical products, demonstrating continued momentum across the company's second operating segment.
Viavi Expands Margins on Favorable MixProfitability improved meaningfully during the quarter as higher revenues and a favorable product mix boosted margins. Non-GAAP gross margin expanded to 62.3% from 60.1% a year earlier, while non-GAAP operating margin climbed 960 basis points year over year to 24.0%, exceeding the high end of management's guidance.
Non-GAAP operating income more than doubled year over year to $106.4 million. Earnings benefited from approximately 2 cents per share from lower interest expense following debt reduction and tariff refunds received during the quarter.
VIAV Strengthens Balance Sheet & Cash FlowViavi ended the quarter with $656.7 million in total cash, short-term investments and restricted cash. Cash flow from operating activities reached $66.7 million during the quarter, while capital expenditures totaled $11.1 million.
The company strengthened its balance sheet through capital allocation initiatives. During the quarter, it completed a follow-on equity offering that generated approximately $575 million in gross proceeds. The proceeds were primarily used to retire the remaining $450 million balance of its Term Loan B, while the remaining funds enhanced liquidity. The company did not repurchase shares during the quarter as debt reduction remained the priority, although nearly $170 million remains available under its existing authorization.
Viavi Sees Healthy Demand Across End MarketsManagement highlighted that demand from the data center ecosystem remains exceptionally strong, supported by investments in AI infrastructure, high-performance computing, optical networking and hyperscale data center deployments. The recently acquired Spirent high-speed Ethernet product lines continued to perform well and contributed meaningfully to quarterly growth.
The aerospace and defense business delivered another quarter of solid growth, particularly for positioning, navigation and timing products, which management expects to remain a multiyear growth driver. Meanwhile, service provider demand improved seasonally, supported by fiber monitoring deployments and cable network upgrades, although wireless demand remained stable at relatively subdued levels.
VIAV Guides for Another Sequentially Strong QuarterFor the first quarter of fiscal 2027, management projects revenues to be between $450 million and $460 million with non-GAAP earnings of 40-42 cents per share. The outlook implies sequential growth, driven by continued strength in both operating segments.
The company expects NSE revenues to be between $360 million and $368 million, supported by continued momentum across data center and aerospace and defense markets, while OSP revenues are projected to be in the range of $90-$92 million on seasonally stronger demand for 3D sensing products. Management forecasts a non-GAAP operating margin of approximately 27.1%, benefiting from tariff refunds despite additional operating costs associated with the extra week in the fiscal quarter.
VIAV’s Zacks RankVIAV currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Upcoming ReleasesKeysight Technologies, Inc. (KEYS - Free Report) is scheduled to release third-quarter fiscal 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.
Analog Devices, Inc. (ADI - Free Report) is set to release third-quarter fiscal 2026 earnings on Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, implying growth of 62.44% from the year-ago reported figure.
Analog Devices has a long-term earnings growth expectation of 31.04%. The company delivered an average earnings surprise of 5.48% in the last four reported quarters.
Applied Materials, Inc. (AMAT - Free Report) is scheduled to release third-quarter fiscal 2026 earnings on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, suggesting growth of 35.48% from the year-ago reported figure.
Applied Materials has a long-term earnings growth expectation of 32.44%. The company delivered an average earnings surprise of 6.06% in the last four reported quarters.
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.
Viasat Drops 29%: Falling Knife or Moonshot Bargain?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.
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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.
3 Stocks Under $20 Worth the PriceCFO 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.
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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
Viavi Solutions (VIAV - Free Report) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +13.33%. A quarter ago, it was expected that this communications equipment company would post earnings of $0.24 per share when it actually produced earnings of $0.27, delivering a surprise of +12.5%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Viavi Solutions, which belongs to the Zacks Communication - Components industry, posted revenues of $443.1 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.34%. This compares to year-ago revenues of $290.5 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Viavi Solutions shares have added about 126.3% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Viavi Solutions?While Viavi Solutions has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Viavi Solutions was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.27 on $437.13 million in revenues for the coming quarter and $1.22 on $1.81 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Communication - Components is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, NETGEAR, Inc. (NTGR - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -66.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
NETGEAR, Inc.'s revenues are expected to be $157.85 million, down 7.4% from the year-ago quarter.
, /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.
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.
Key Takeaways VIAV reports Q4 2026 results on Aug. 5, with AI networking and Spirent integration in focus.Viavi launched new AI, cybersecurity and network testing platforms to expand growth markets.VIAV faces headwinds from weak telecom spending, negative free cash flow and higher leverage. Viavi Solutions, Inc. (VIAV - Free Report) is scheduled to report fourth-quarter fiscal 2026 earnings on Aug. 5, after the closing bell. The Zacks Consensus Estimate for revenues and earnings is pegged at $432.95 million and 30 cents per share, respectively. The earnings estimate for VIAV for 2026 and 2027 has remained unchanged for the past 60 days.
VIAV Estimate Trend
Image Source: Zacks Investment Research
Earnings Surprise HistoryViavi delivered a four-quarter earnings surprise of 13.00%, on average, beating estimates on all occasions. In the last reported quarter, the company’s earnings surprise was 12.5%.
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Earnings WhispersOur proven model does not conclusively predict an earnings beat for VIAV for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Factors Shaping the Quarterly PerformanceDuring the quarter, Viavi introduced the industry’s first Ultra Ethernet Transport (UET) validation platform, designed to help hyperscalers, cloud providers, neocloud operators, and network equipment manufacturers accelerate the deployment of next-generation AI networks. The launch of the new testing solution will boost Viavi’s prospects in the rapidly growing AI infrastructure space.
The company also introduced the TETRA Mobile Station radio Base Station Simulator for its CX300 communications service monitor. The new upgrades introduced by Viavi enable the CX300 platforms to assess the TETRA radios by replicating real-world scenarios with precision. The upgrades accelerate the testing process, accelerate the deployment timeline and reduce workload for field technicians.
In the quarter under review, Viavi launched the CyberFlood CF1000 Appliance, a native 400G security and application performance testing platform for multi-terabit security and AI data center infrastructures. Built for network equipment manufacturers, hyperscale data center operators and service providers, the platform strengthens Viavi's cybersecurity testing and AI infrastructure validation capabilities. This will broaden the company’s footprint in fast-growing data center markets. Such innovative product launches are expected to have a favorable impact on quarterly results.
However, despite strong focus on innovation, there are some factors that could hinder Viavi’s results to some extent. Traditional telecom service providers remain cautious with capital expenditures. Demand softness in carrier investments could impact the company’s legacy network testing businesses and offset strength from AI-related demand. Higher operating expenses related to R&D and product launches may bring long-term benefits but can impact margin in the near term.
Price PerformanceOver the past year, Viavi has surged 216.9% compared to the industry’s growth of 158.5%, outperforming its peers like Keysight Technologies, Inc. (KEYS - Free Report) , but underperforming Ciena Corporation (CIEN - Free Report) . Keysight has increased 77.1%, while Ciena has improved 255.4% during this period.
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Key Valuation MetricFrom a valuation standpoint, Viavi appears to be trading relatively cheaper than the industry and below its mean. Going by the price/earnings ratio, the company shares currently trade at 25.93 forward earnings, lower than 31.33 for the industry and the stock’s mean of 39.19.
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Investment ConsiderationDemand from hyperscalers, AI chipmakers, optical module suppliers and networking OEMs is expected to remain the primary growth driver. Particularly, growing investment in AI clusters is driving demand for VIAVI's lab, production and field-testing solutions.
The integration of Spirent's high-speed Ethernet, network security and channel emulation businesses is expected to be a revenue driver. The acquisition has brought a larger enterprise customer base, a stronger Ethernet testing portfolio, cross-selling opportunities and greater exposure to the AI networking domain. In addition to this, the introduction of the industry's first UET validation platform has significantly expanded Viavi’s addressable market beyond traditional telecom testing and into the expanding AI networking domain. Viavi is also boosting its prospects in the aerospace and defense domain with the launch of innovative products like the µPNT GDO-1000 GNSS-disciplined oscillator. Management expects recovery in demand for 3D sensing, anticounterfeiting solutions and industrial optical products during the June quarter.
However, as AI networking infrastructure expands, competition among testing solution providers is intensifying. Keysight continues to invest in next-generation electronic test equipment. Ciena continues to benefit from growing demand for high-speed optical networking equipment that supports AI data center deployments. Against this backdrop, Viavi is leveraging its capabilities in network validation, optical testing and resilient positioning, navigation and timing (PNT) technologies to boost its competitive edge.
It is to be noted that Viavi’s growth in recent quarters is fueled by hyperscaler and AI data center spending. Any delay in AI infrastructure deployments or moderation in customer spending could reduce demand for its testing and validation solutions. Persistent economic uncertainty, longer customer purchasing cycles or component supply constraints could delay shipments and impact revenue. Operating cash flow turned negative in the last quarter. Free cash flow was also negative. Increased leverage following acquisitions and financing activities, combined with reduced share repurchases, reflects ongoing balance sheet management challenges.
End NoteAI infrastructure expansion and the Spirent acquisition are expected to be the revenue drivers in the June quarter. Launch of new AI networking products, high-speed interconnect testing opportunities, and growing prospects in the aerospace and defense market are positive factors. However, weak telecom carrier spending, the company’s high reliance on AI infrastructure investment for growth, and macroeconomic and supply chain uncertainties remain major headwinds. Negative free cash flow and increasing leverage are concerning. With a Zacks Rank #3 (Hold), Viavi appears to be treading in the middle of the road, and new investors could be better off if they trade with caution.
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
Allspring Global Investments Holdings LLC acquired a new stake in Viavi Solutions Inc. (NASDAQ:VIAV – Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 2,132,982 shares of the communications equipment provider’s stock, valued at approximately $75,294,000. Allspring Global Investments Holdings LLC owned 0.91% of Viavi Solutions as of its most recent filing with the Securities & Exchange Commission.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. WPG Advisers LLC grew its position in Viavi Solutions by 96.2% in the 1st 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 during the period. State of Wyoming acquired a new position in Viavi Solutions during the fourth quarter worth $34,000. Johnson Financial Group Inc. bought a new position in shares of Viavi Solutions in the third quarter valued at $44,000. Cedar Mountain Advisors LLC bought a new position in shares of Viavi Solutions in the first quarter valued at $50,000. Finally, Hantz Financial Services Inc. grew its holdings in shares of Viavi Solutions by 86.2% during the fourth quarter. Hantz Financial Services Inc. now owns 2,845 shares of the communications equipment provider’s stock valued at $51,000 after buying an additional 1,317 shares during the last quarter. Institutional investors own 95.54% of the company’s stock.
Viavi Solutions Price Performance Shares of NASDAQ:VIAV opened at $38.16 on Friday. The company has a market capitalization of $8.93 billion, a P/E ratio of -158.99 and a beta of 1.18. The company’s 50-day moving average is $47.90 and its 200 day moving average is $36.80. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.39 and a current ratio of 1.61. Viavi Solutions Inc. has a fifty-two week low of $9.61 and a fifty-two week high of $60.43.
Viavi Solutions (NASDAQ:VIAV – Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The communications equipment provider reported $0.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.03. The business had revenue of $406.80 million during the quarter, compared to the consensus estimate of $393.80 million. Viavi Solutions had a negative net margin of 4.03% and a positive return on equity of 16.80%. The firm’s quarterly revenue was up 42.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.15 earnings per share. Viavi Solutions has set its Q4 2026 guidance at 0.290-0.310 EPS. On average, equities research analysts forecast that Viavi Solutions Inc. will post 0.73 earnings per share for the current year.
Analysts Set New Price Targets A number of equities research analysts recently weighed in on the stock. Susquehanna upped their target price on shares of Viavi Solutions from $65.00 to $66.00 and gave the stock a “positive” rating in a report on Wednesday, July 1st. Wall Street Zen raised Viavi Solutions from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. UBS Group increased their price objective on Viavi Solutions from $25.00 to $60.00 and gave the stock a “neutral” rating in a research note on Thursday, April 30th. Rosenblatt Securities restated a “buy” rating and issued a $70.00 target price on shares of Viavi Solutions in a report on Wednesday, June 10th. Finally, B. Riley Financial lifted their target price on Viavi Solutions from $26.00 to $53.00 and gave the company a “buy” rating in a research report on Friday, April 24th. Six investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $42.88.
Check Out Our Latest Research Report on VIAV
Insiders Place Their Bets In other news, Director Doug Gilstrap sold 10,000 shares of Viavi Solutions stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $55.00, for a total value of $550,000.00. Following the completion of the transaction, the director directly owned 55,766 shares in the company, valued at approximately $3,067,130. The trade was a 15.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Luke M. Scrivanich sold 10,693 shares of the firm’s stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $53.00, for a total transaction of $566,729.00. Following the completion of the transaction, the senior vice president directly owned 39,287 shares of the company’s stock, valued at approximately $2,082,211. The trade was a 21.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 450,369 shares of company stock valued at $23,789,119. Company insiders own 1.80% of the company’s stock.
Viavi Solutions 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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, /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.
Key Takeaways VIAV secured $1.1M in European funding to support the SHIELD-6G wireless security project.Viavi Solutions will use TeraVM AI RAN Scenario Generator to build digital twins for 6G testing.VIAV aims to improve 6G security, energy efficiency, reliability and reduce FR3 signal interference. Viavi Solutions Inc. (VIAV - Free Report) has secured $1.1 million in funding from the European Smart Networks and Services Joint Undertaking and Horizon Europe to support the SHIELD-6G project. The funding supports the company's efforts to advance artificial intelligence (AI)- powered security testing for future wireless networks.
Under the project, Viavi will use its TeraVM AI RAN Scenario Generator to create digital twins of 6G network environments. These virtual networks will enable researchers and telecom operators to develop, test and validate security solutions against emerging cyber threats before commercial deployment.
The company's network simulations and AI-driven analysis will help identify vulnerabilities, strengthen security mechanisms, optimize energy efficiency and reduce FR3 signal interference. These capabilities are expected to improve performance, reliability and resilience across future wireless communications.
Viavi's participation in the project, alongside industry leaders including Ericsson, Nokia, THALES, and Latvia's LMT, highlights its expanding role in global 6G research and innovation and strengthens its position as a leading provider of advanced network testing and cybersecurity solutions.
How Are Competitors Advancing in the 6G Race?Viavi faces competition from ADTRAN Holdings, Inc. (ADTN - Free Report) and Lumentum Holdings Inc. (LITE - Free Report) . ADTRAN is developing high-speed fiber and optical networking solutions that can support future 6G infrastructure. The company is investing in open and virtualized network technologies to improve network performance and scalability. ADTRAN's fiber transport and synchronization solutions support the high-capacity, low-latency infrastructure needed for 6G networks.
Lumentum is developing high-speed optical and photonic technologies to support future 6G networks. The company is building next-generation indium phosphide photonic chips to provide higher bandwidth and better energy efficiency. Lumentum is expanding its optical portfolio to support the growing demands of advanced networks.
VIAV’s Price Performance, Valuation and EstimatesViavi shares have skyrocketed 310% over the past year compared with the industry’s growth of 298.6%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 33.98 forward earnings, lower than 43.75 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have remained static at 93 cents over the past 60 days, while those for 2027 have increased 0.8% to $1.22.
Image Source: Zacks Investment Research
Viavi stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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)
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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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Contribution to flagship 6G projects underscores VIAVI's pivotal role in the next generation of connectivity
, /PRNewswire/ -- VIAVI Solutions Inc. (VIAVI) (NASDAQ: VIAV) today announced that it has been awarded $1.1 million in funding from the European Smart Networks and Services Joint Undertaking (SNS JU) and Horizon Europe to advance the SHIELD-6G project.
As telecom breaches increase in volume and the threat of quantum-enabled cyberattacks moves from theoretical to imminent, network security has become a strategic priority for operators, enterprises and governments worldwide. The SHIELD-6G project aims to develop a comprehensive AI-driven Cyber Threat Intelligence (CTI) platform for 6G networks with interoperable security, orchestration and regulatory compliance. VIAVI will develop digital twins using its TeraVM AI RAN Scenario Generator (RSG), enabling AI-driven security models to be developed, tested and validated ahead of the first commercial 6G signal going live.
As part of SHIELD-6G, VIAVI will use its AI RSG technology to support advanced security testing of 6G network environments, using AI to simulate, detect and analyze potential threats across the network. This includes generating realistic network datasets that enable intelligent anomaly detection and the continuous refinement of AI-based security mechanisms to ensure that vulnerabilities are identified and addressed before they can be exploited in live networks.
"Security for 6G networks has to be built in from day one, and that requires the ability to simulate, test and detect threats before a single commercial 6G signal goes live," said Ian Langley, Senior Vice President, Wireless, Security and Applications Business Unit, VIAVI. "Our AI RSG technology is already being used to provide the essential digital twin foundation required to better understand 6G propagation, improve energy consumption and reduce FR3 signal interference. SHIELD-6G takes that capability directly into the security domain, where the stakes are even higher. We're delighted to be involved in this latest collaboration at the forefront of global technological innovation."
SHIELD-6G is part of the highly competitive Horizon Europe SNS JU call to accelerate European 6G research and innovation, which selected 20 new 6G projects. VIAVI joins a European consortium coordinated by University College Dublin, working alongside global industry leaders including Ericsson, Nokia, THALES & THALES SIX, as well as network operators Telefónica and LMT of Latvia, bringing together the full chain of expertise needed to secure 6G networks end to end.
About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications. In addition, we develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.
Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.
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Key Takeaways VIAV lifted non-GAAP operating margin to 21% as NSE and OSP revenue posted strong year-over-year growth.VIAV expects operating margin to reach 22.7% in the fourth quarter, up from 21% in the third quarter.VIAV's earnings estimates for 2026 were unchanged, while 2027 estimates improved over the past 60 days. Viavi Solutions, Inc. (VIAV - Free Report) reported a non-GAAP operating income of $85.5 million, up from $47.7 million a year ago quarter. Non-GAAP operating margin was 21%, up from 16.7% a year ago.
The improvement in operating margin is driven by multiple factors, including strong growth in the Network and Service Enablement segment (NSE) and Optical Security and Performance Products (OSP). In the third quarter of fiscal 2026, the NSE segment generated $321.5 million in revenues, up 54.4% year over year. The segment accounted for 79% of total revenues. Acquisition of Spirent product lines and strong demand across lab, production and field products, mainly from the data center ecosystem and aerospace & defense sectors, drove solid sales growth in this segment. The OSP segment revenues were $85.3 million, up 11.4% year over year, driven by strong demand for 3D Sensing and anti-counterfeiting.
Higher revenue is allowing fixed costs to be spread across a larger sales base. This is resulting in a significant operating leverage. Every incremental dollar of NSE revenue contributes roughly 40-45 cents to operating income, reflecting a highly scalable cost structure. Increasing mix, AI infrastructure and data center business, backed by hyperscalers’ demand, investment by optical module vendors and semiconductor companies will likely drive operating margin in the coming quarters. In the fourth quarter, Viavi expects its operating margin to reach 22.7%, up from 21% in the third quarter.
Other Tech Firms With Strong Margin ExpansionSanmina Corporation (SANM - Free Report) reported a non-GAAP operating profit of $257 million in the second quarter of 2026, up from $111 million a year ago. Non-GAAP operating margin improved to 6.4% from 5.6%. The 131.5% increase year over year and an 80-basis point operating margin expansion are driven by a multitude of factors. The ZT system, which performed significantly better than expected, was one of the biggest contributors. Strong customer demand for accelerated compute systems and earlier-than-expected shipments supported Sanmina’s profitability. Sanmina’s revenues surged 102.3% year over year to $4.01 billion. Revenue growth significantly outpaced the increase in operating expenses. Disciplined cost management was also a key contributor in this regard.
HubSpot. Inc. (HUBS - Free Report) generated a non-GAAP operating income of $156.8 million, up from $100.3 million in the prior-year quarter, with margin expanding 380 basis points year over year to 17.8%. Higher revenues and operating discipline helped offset increased investments in research, AI innovation and sales initiatives. HubSpot continues to witness rising adoption among larger customers as businesses consolidate marketing, sales and service workflows on a unified AI-enabled platform. During the first quarter of 2026, deals above $60,000 in annual recurring revenues increased 37% year over year, while deals above $120,000 ARR rose 64%. HubSpot’s AI strategy is increasingly contributing to customer engagement and monetization.
VIAV’s Price Performance, Valuation and EstimatesViavi has gained 290.8% in the past year compared with the Electronics - Measuring Instruments industry’s growth of 287%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 32.8 forward earnings, lower than 41.94 for the industry and its mean of 37.66.
Image Source: Zacks Investment Research
The company’s earnings estimates for 2026 have remained unchanged and 2027 have improved over the past 60 days.
Image Source: Zacks Investment Research
VIAV carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AmpliTech Group’s 64T64R Massive MIMO Radio Featured in VIAVI VALOR Lab Demonstrations for AI-RAN Alliance Members
AmpliTech’s radio was the only Massive MIMO radio included in live demonstrations at the industry’s first AI-RAN Alliance-endorsed Open RAN test facility
PR Audio:
HAUPPAUGE, N.Y., July 8, 2026 – PRISM MediaWire (Press Release Service – Press Release Distribution) – AmpliTech Group, Inc. (NASDAQ: AMPG, AMPGR, AMPGZ) (the “Company” or “AmpliTech”), a designer, developer, and manufacturer of advanced radio frequency (RF) microwave components, 5G communication systems, and quantum computing low-noise amplifiers (LNAs), today announced that its O-RAN CAT B 64T64R Massive MIMO radio unit was featured in live demonstrations at VIAVI Solutions’ VALOR Lab during a recent facility tour for AI-RAN Alliance members and attendees.
AmpliTech Group’s 64T64R Massive MIMO Radio Featured in VIAVI VALOR Lab Demonstrations for AI-RAN Alliance Members The tour, held in conjunction with the AI-RAN Alliance Annual Meeting, brought approximately 120 attendees through VIAVI’s Automated Lab-as-a-Service for Open RAN (VALOR™) facility in Chandler, Arizona. VALOR is a purpose-built, AI-enabled testing environment combining a 600 plus automated test case library, a 25-by-35-foot RF anechoic chamber, with GPU infrastructure from a prominent AI player in the industry, and on-site multi-vendor O-RAN reference configurations. Funded in part by the NTIA’s Public Wireless Supply Chain Innovation Fund, VALOR is recognized as the industry’s first AI-RAN Alliance-endorsed lab.
AmpliTech’s 64T64R radio was used in live demonstrations during the tour, giving attendees a firsthand look at the radio’s performance within a multi-vendor O-RAN reference environment, the kind of real-world validation that operators and integrators increasingly require before committing to large-scale deployment.
Independent Validation in a Multi-Vendor Environment
VALOR’s role in the Open RAN ecosystem is to provide rigorous, independent validation of AI-powered RAN technology before it reaches live commercial networks. Since opening in 2024, the lab has executed more than 2,100 test runs across 377 test cases and has maintained an average occupancy rate of 75%, reflecting strong demand from across the industry for the kind of testing infrastructure most companies cannot replicate in-house.
AmpliTech’s inclusion in VALOR’s demonstration environment, alongside other leading O-RAN vendors, reflects the radio’s continued validation across an expanding set of independent testing venues, including the Open6G OTIC at Northeastern University and the O-RAN ALLIANCE Global PlugFest Spring 2026, in which AmpliTech’s 64T64R was the only radio of its configuration to participate.
Executive Commentary
“Every independent evaluation adds another layer of credibility to our technology. It is one of the strongest indicators of technology leadership,” says said Fawad Maqbool, Founder, Chairman, President, and CEO of AmpliTech Group. “VALOR is exactly the kind of environment where that matters, a rigorous, multi-vendor, AI-enabled testing infrastructure that the industry is using to separate what works from what is still theoretical. We’re glad to be part of it.”
About VIAVI Solutions’ VALOR Lab
VIAVI’s Automated Lab-as-a-Service for Open RAN (VALOR™) is a purpose-built, AI-enabled testing facility located in Chandler, Arizona, offering a comprehensive automated test case library, large-scale RF anechoic chamber testing, with a prominent industry player GPU’s infrastructure, and multi-vendor O-RAN reference configurations. VALOR is recognized as the industry’s first AI-RAN Alliance-endorsed lab and is funded in part by the NTIA’s Public Wireless Supply Chain Innovation Fund. For more information, visit www.viavisolutions.com/en-us/valor.
About AmpliTech Group, Inc.
AmpliTech Group, Inc. (NASDAQ: AMPG, AMPGR, AMPGZ) designs, develops, and manufactures advanced RF and microwave signal-processing components and systems for satellite, 5G/6G telecom, quantum computing, defense, and space applications. Its five divisions (AmpliTech Inc., Specialty Microwave, Spectrum Semiconductor Materials, AmpliTech Group Microwave Design Center, and AmpliTech Group 5G Division) work symbiotically and serve customers worldwide. Through continuous innovation and U.S.-based manufacturing, AmpliTech is enabling the next generation of connectivity and communication systems. For further information, please visit www.amplitechgroup.com.
Forward-Looking Statements
This release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief, or current expectations of the Company, its directors, or its officers, including statements regarding outside lab certifications, anticipated margin expansion, and expected uses of cash. Words such as “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, including those discussed in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, the Company undertakes no obligation to update any forward-looking statements.
Corporate Social Media
X: @AmpliTechAMPG
Facebook: AmpliTechInc
LinkedIn: AmpliTech Group Inc
Key Takeaways VIAV is gaining from AI infrastructure demand, product innovation and the Spirent business acquisition.VIAV expanded margins as revenues rose 42.8% and non-GAAP operating margin reached 21% in fiscal Q3 2026.Viavi expects AI networking, data centers, 5G, fiber, aerospace and defense demand to support growth. Viavi, Solutions, Inc. (VIAV - Free Report) shares have skyrocketed 167.9% year to date compared with the industry’s growth of 150.2%. The stock has outperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame.
Image Source: Zacks Investment Research
The company has outperformed its peers like Keysight Technologies, Inc. (KEYS - Free Report) , and Ciena Corporation (CIEN - Free Report) . Shares of Keysight have jumped 72.3% and shares of Ciena have risen 109.7%.
VIAV Rides on Strength in AI Infrastructure VerticalViavi is witnessing solid traction in its Network and Service Enablement, backed by ongoing AI infrastructure buildout. Growing demand from the data center ecosystem, including hyperscalers and semiconductor-driven infrastructure, is driving revenues in the NSE segment.
The company recently launched the industry's first Ultra Ethernet Transport validation solution for AI fabrics. The platform enables hyperscalers, cloud providers and network equipment vendors to verify AI networks with costly GPU infrastructure. The innovation boost Viavi’s prospects across multiple use cases, such as validation of large language model traffic, congestion control and AI workload emulation and several others.
Viavi recently introduced AI Experts, an AI-driven software layer integrated into its testing platforms. Its capabilities include automated configuration, diagnostics assistance, workflow automation, real-time troubleshooting and faster wireless validation. This shows that VIAV is moving towards intelligent software-enabled testing instead of simply selling hardware. This can improve customers’ brand loyalty and boost software revenues over time. The company also recently secured PCIe 6.0 Certification. The certification enhances VIAVI's credibility as a trusted provider of compliance and validation solutions for advanced computing technologies.
One of the largest contributors to growth is the acquisition of Spirent's high-speed Ethernet, network security and channel emulation businesses. Following the buyout, the company benefited from a broader customer base, an Ethernet testing portfolio expansion, stronger AI networking capabilities and increased cross-selling opportunities. A diverse portfolio, innovation initiatives are boosting its competitive edge against its peers such as Keysight, Ciena and Teradyne.
Strong Operating Margin Growth is a PositiveStrong margin expansion shows improving operating leverage. Revenue grew 42.8% year over year, while non-GAAP operating income grew 79.2% during the same time period. Non-GAAP operating margin improved to 21% in the third quarter of fiscal 2026, up from 16.7% in the year-ago quarter. This reflects higher volumes and a favorable product mix within Network and Service Enablement. Segment profitability benefited from acquisition synergies and stronger demand across data center and aerospace markets. Fourth quarter fiscal 2026 outlook indicates additional operating margin expansion, signaling continued operating leverage as revenues scale and a greater portion of sales comes from differentiated testing and software-oriented offerings.
Estimate Revision TrendThe company’s earnings estimates for 2026 has remained unchanged and for 2027 it has improved over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of VIAVFrom a valuation standpoint, VIAV is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 51.16 forward 12-month earnings, lower than 58.46 for the industry.
Image Source: Zacks Investment Research
End NoteViavi is positioning itself as a critical supplier to AI networking infrastructure. Strong demand from data centers, continued 5G and fiber network upgrades, and steady aerospace and defense demand are expected to be major growth drivers for the upcoming quarters. Portfolio expansion through strategic acquisition and a strong focus on innovation is a positive factor. Hence, with a Zacks rank #2 (Buy), Viavi appears to be a good investment option at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GPU-free solution emulates real-world AI workload traffic at scale for faster, more cost-efficient network validation
, /PRNewswire/ -- VIAVI Solutions Inc. (VIAVI) (NASDAQ: VIAV) today announced the launch of the industry's first Ultra Ethernet Transport (UET) validation solution for AI fabrics, bringing powerful traffic generation and analysis capabilities to hyperscalers, cloud and neocloud providers, as well as network equipment manufacturers across the broader Ultra Ethernet ecosystem.
VIAVI Ultra-Ethernet-Transport-Validation The new GPU-free, full-fidelity offering for VIAVI TestCenter is designed to accelerate the rollout of next-generation high-speed AI networks through the validation of scale-out and scale-up AI back-end networks using the Ultra Ethernet Consortium's (UEC) Ultra Ethernet Stack.
The Ultra Ethernet Stack is purpose-built for large-scale AI and High-Performance Computing (HPC) workloads, with UEC 1.0 introducing a new UET protocol that delivers advanced congestion control and massive scalability to accelerate multi-vendor adoption of Ethernet as a primary transport for AI fabrics.
VIAVI's UET validation solution enables customers to ensure that their AI fabrics deliver the required performance and resiliency without the cost and complexity of deploying dedicated GPU infrastructure. The solution emulates the transport layer of UET, replicating realistic, stateful AI traffic patterns at scale, including reliable ordered and unordered delivery (ROD/RUD), packet trimming, congestion control and dynamic multipathing. It also supports full-fidelity emulation of AI workloads, such as collective communications (CCL) and large language model (LLM) flows. In addition, the platform enables comprehensive validation of load-balancing mechanisms across the AI fabric, including ECMP, packet spraying and flowlet switching.
"AI clusters will soon scale to millions of endpoints, which means relying on physical GPUs alone to validate network behavior is no longer practical," said Aniket Khosla, Vice President of Product Management, Optical Transport and High-Speed Ethernet, VIAVI. "While Ultra Ethernet delivers high throughput for AI and HPC along with the benefits of standardization, its success depends on rigorous, realistic testing. The launch of this GPU-free, full-fidelity UET validation solution gives customers the confidence to deploy scalable, high-performance AI fabrics faster and more cost-effectively."
"As AI data center fabrics grow in size and complexity, traditional validation approaches struggle to keep pace," said Mahesh Subramaniam, Senior Director of Product Management, AI Data Centers, HPE. "The VIAVI TestCenter platform provides realistic traffic emulation and the granular visibility needed to validate congestion control and transport performance at scale. Through our collaboration, including UET transport validation using the Juniper QFX5240 platform and Junos Evolved with advanced software features such as packet trimming, we are demonstrating how advanced switching and realistic traffic testing enable faster deployment and reliable scaling of Ultra Ethernet in next-generation AI networks."
About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications. In addition, we develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.
Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.
Media Inquiries:
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Emma Jenkins
[email protected]
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Key Takeaways Viavi launched the industry's first UET validation platform for next-generation AI networks.VIAV's GPU-free TestCenter approach helps cut costs and simplify high-speed AI network validation.VIAV's platform simulates AI traffic, LLM communications and collective computing flows for visibility. Viavi Solutions Inc. (VIAV - Free Report) has launched a new testing solution to support the rapidly growing artificial intelligence (AI) infrastructure market. The company has introduced the industry’s first Ultra Ethernet Transport (UET) validation platform, designed to help hyperscalers, cloud providers, neocloud operators and network equipment manufacturers accelerate the deployment of next-generation AI networks.
Viavi offers a GPU-free approach to validating high-speed AI networks through its TestCenter platform, helping reduce costs and simplify operations. The solution supports both scale-out and scale-up AI back-end networks built on the Ultra Ethernet Stack, improving performance for AI and high-performance computing workloads through better congestion control and greater scalability.
The platform can simulate real-world AI traffic by reproducing complex transport behaviors such as reliable delivery, congestion handling, dynamic multipathing and advanced load-balancing methods. It also emulates AI workloads, including large language model communications and collective computing flows, while providing deep network visibility to enhance network monitoring and improve reliability.
Viavi’s collaboration with industry leaders such as Hewlett Packard Enterprise Company (HPE - Free Report) highlights the growing demand for advanced AI networking solutions. This development strengthens the company’s market position and supports broader adoption of high-performance data center technologies.
How Are Competitors Advancing in the AI Space?Viavi faces competition from ADTRAN Holdings, Inc. (ADTN - Free Report) and Anterix Inc. (ATEX - Free Report) . ADTRAN is expanding AI-based networking solutions to help customers manage data traffic more efficiently. The company uses AI-powered software to improve network automation and monitoring. ADTRAN is strengthening its connectivity solutions to meet growing AI-based data center demand.
Anterix is helping utility companies build private wireless networks that support AI-enabled grid management. The company’s spectrum solutions improve secure, real-time communication for smart energy systems. Anterix is supporting digital transformation in the utility sector as demand for advanced grid technologies grows.
VIAV’s Price Performance, Valuation and EstimatesViavi shares have skyrocketed 407.3% over the past year compared with the industry’s growth of 325.3%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 41.12 forward earnings, lower than 49.8 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 10.7% to 93 cents over the past 60 days, while those for 2027 have also increased 16.2% to $1.22.
Image Source: Zacks Investment Research
Viavi stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Viavi Solutions (VIAV - Free Report) have gained 1.7% over the past four weeks to close the last trading session at $50.1, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $64.63 indicates a potential upside of 29%.
The average comprises eight short-term price targets ranging from a low of $60.00 to a high of $70.00, with a standard deviation of $3.54. While the lowest estimate indicates an increase of 19.8% from the current price level, the most optimistic estimate points to a 39.7% 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.
Why VIAV Could Witness a Solid UpsideAnalysts' 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 0.3%, as one estimate has moved higher compared to no negative revision.
Moreover, VIAV currently has a Zacks Rank #2 (Buy), which means it is in the top 20% 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.
Platform authorized for PCIe compliance testing worldwide, helping accelerate interoperability across next-gen PCIe technology ecosystems
, /PRNewswire/ -- VIAVI Solutions Inc. (VIAVI) (NASDAQ: VIAV) today announced that its Xgig® platform for PCI Express® (PCIe®) 6.0 specification testing has achieved Gold Suite acceptance from PCI-SIG. This recognition enables the platform to be used for PCIe 6.0 link and transaction protocol compliance testing at PCI-SIG compliance workshops worldwide.
Products that successfully pass PCIe compliance testing are added to the PCI-SIG Integrators List, giving buyers and system integrators a verified reference of interoperable, standards-compliant components. With Gold Suite acceptance, the VIAVI Xgig PCIe 6.0 platform is now authorized to support compliance testing in preparation for PCI-SIG compliance, helping accelerate interoperability across next-generation PCIe technology ecosystems.
"Designed to support AI workloads and other high-performance computing applications, PCIe 6.0 specification delivers faster, more dependable data transfer, driving greater overall efficiency," said Tom Fawcett, Senior Vice President and General Manager, Lab & Production, VIAVI. "Compliance testing remains a cornerstone of PCI-SIG's standards development, and we look forward to continuing to support its members in upcoming compliance workshops."
"As PCIe 6.0 technology scales to meet the demands of AI and high-performance computing, robust compliance testing is critical to delivering the interoperability needed by our members," said Al Yanes, President and Chairperson, PCI-SIG. "VIAVI's Gold Suite acceptance supports the tools available at our compliance workshops, which helps accelerate adoption of PCIe 6.0 technology across the ecosystem."
The VIAVI Xgig PCIe 6.0 platform builds on a proven multifunction architecture, integrating protocol analysis, traffic generation and error injection within a unified system. Designed for flexibility and scalability, the platform supports advanced debug, validation and compliance workflows required for next-generation PCIe devices and systems.
About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications. In addition, we develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.
Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.
About PCI-SIG
PCI-SIG is the consortium that owns and manages PCI specifications as open industry standards. The organization defines industry standard I/O (input/output) specifications consistent with the needs of its members. Currently, PCI-SIG is comprised of 1,000 industry-leading member companies. To join PCI-SIG, and for a list of the Board of Directors, visit www.pcisig.com.
PCI-SIG, PCI Express, and PCIe are trademarks or registered trademarks of PCI-SIG. CXL is a registered trademark of the CXL Consortium.
Media Inquiries:
Grand Bridges
Emma Jenkins
[email protected]
+1 415 800 4529
Key Takeaways VIAVI launched a TETRA Mobile Station Base Station Simulator upgrade for its CX300 service monitor.VIAV's upgrade adds transmitter, call processing, and BER/MER testing to streamline field workflows.VIAVI's 2026 and 2027 earnings estimates have improved over the past 60 days. Viavi Solutions, Inc. (VIAV - Free Report) recently introduced a TETRA Mobile Station (MS) Base Station Simulator for its CX300 communications service monitor. TETRA (Terrestrial Trunked Radio) is an international digital radio communication standard. It is developed for several entities such as emergency services, government agencies and industries that require highly reliable and secure communications.
The CX300 is VIAVI's portable communications service monitor. This is usually used by the field technicians to deploy, maintain and troubleshoot radio systems. In the traditional process, testing of a TETRA mobile radio needed T1 test mode, which requires additional setup.
The new upgrades introduced by Viavi enable the CX300 platforms to assess the TETRA radios by replicating the real-world scenarios with precision. The comprehensive testing upgrades include transmitter parametric measurements, call processing tests, and Bit Error Rate/Message Error Rate testing. The upgrades accelerate the testing process, accelerate the deployment timeline, reduce workload for field technicians and lower the overall operating cost of emergency service providing agencies. Such a strong focus on innovation reinforces VIAV's technology leadership in mission-critical radio testing.
Other Tech Firms Working in Mission-Critical Communication SystemsMotorola Solutions, Inc. (MSI - Free Report) is a leading communications equipment manufacturer and has strong market positions in bar code scanning, wireless infrastructure gear, and government communications. The company provides a comprehensive suite of TETRA technologies. Motorola DIMETRA system, which includes DIMETRA Express, DIMETRA X Core and base stations, ensures resilient, secure and scalable voice and data communication. Motorola’s radios, like the MXP600 and MTP8500Ex, are designed for devices tailored for different operational needs.
Keysight Technologies, Inc. (KEYS - Free Report) is a provider of electronic design and test instrumentation systems. It boasts an advanced radio testing portfolio. Keysight’s solution is designed to validate manufacturing and maintain TETRA (Terrestrial Trunked Radio) infrastructure and user devices.
VIAV’s Price Performance, Valuation and EstimatesViavi has gained 484.3% in the past year compared with the Electronics - Measuring Instruments industry’s growth of 330.8%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 44.71 forward earnings, lower than 49.11 for the industry but above its mean of 36.46.
Image Source: Zacks Investment Research
The company’s earnings estimates for 2026 and 2027 have improved over the past 60 days.
Image Source: Zacks Investment Research
VIAV carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allows full testing of TETRA MS radios, including transmitter parametric measurements, call processing and BER/MER loopback without the need to place radios in T1 test mode
, /PRNewswire/ -- VIAVI Solutions Inc. (VIAVI) (NASDAQ: VIAV) has announced a TETRA MS radio base station simulator option for its field-portable CX300 communications service monitor. The upgrade enables full testing without placing radios in T1 test mode, streamlining and accelerating validation of mission‑critical communication systems.
Allows full testing of TETRA MS radios, including transmitter parametric measurements, call processing and BER/MER loopback without the need to place radios in T1 test mode TETRA (terrestrial trunked radio), a global open standard for voice and data communications developed by the European Telecommunications Standards Institute (ETSI), operates independently of commercial cellular networks. It has been widely adopted by emergency services, government agencies and industries such as transport for its resilience, fast call setup, built-in high security encryption, group-voice push-to-talk calling, and direct device-to-device communications through Direct Mode Operation (DMO).
The TETRA MS upgrade is available via a software-keyed option on the CX300 and requires no additional hardware. It enables the full testing of TETRA MS radios, including transmitter parametric measurements (power profile, RF power, carrier frequency offset, burst timing, modulation accuracy), call processing and receiver BER/MER loopback without requiring the radio under test to be placed in T1 test mode. VIAVI provides migration support for existing users of the legacy 3920B platform.
"VIAVI has been the benchmark for TETRA radio testing for more than two decades, and the CX300 TETRA MS option is the next step in that tradition," said Wayne Wong, Director of Product Management, Radio Test, VIAVI. "This upgrade lets technicians test a TETRA mobile station the way it actually operates in the field, registering to a base station without requiring any special test mode on the radio."
The CX300 supports the testing of all major LMR/PMR protocols including TETRA, P25, DMR (MOTOTRBO) and NXDN. The device integrates spectrum analysis, signal generation and analysis, cable and antenna analysis, 2-port 1 path VNA, power measurement, audio analysis and VIAVI AutoTest automated alignment.
About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications. In addition, we develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.
Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.
Media Inquiries:
Grand Bridges
Emma Jenkins
[email protected]
+1 415 800 4529
On May 18, 2026, Viavi Solutions Inc VIAV shares fell 3.2% today, currently trading at $49.75. This decline comes amidst a volatile year, where the stock has traded within a 52-week range of $8.87 to $60.43.
GF Value™ verdict: Current price of $49.75 is 283.3% above the GF Value™ of $12.98, indicating the stock is significantly overvalued.GF Score™: The stock has a score of 58/100, which is considered average among its peers.Most notable signal: Insiders have sold $28.0 million worth of shares in the last three months, with no buying activity reported. Is VIAV Overvalued or Undervalued? The current trading price of Viavi Solutions Inc VIAV at $49.75 stands in stark contrast to the GF Value™ estimate of $12.98, suggesting that the stock is significantly overvalued by 283.3%. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. This extreme valuation raises concerns about the sustainability of the current price level, especially given the GF Valuation label indicating that the stock is significantly overvalued.
The considerable gap between the current price and the GF Value™ indicates a lack of margin of safety for potential investors. If the market corrections occur or if the company does not meet growth expectations, the stock price could face downward pressure, representing a risk for those holding the shares. Conversely, if the company can demonstrate substantial growth and improve its fundamentals, there may be a case for a reevaluation of its intrinsic value, although such scenarios would require careful monitoring of financial performance and market conditions.
How Does VIAV's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)39.0x90.9x Currently, VIAV's forward P/E ratio of 39.0x is significantly below its 5-year median P/E of 90.9x, suggesting that the stock is trading well below its historical valuation. This P/E analysis aligns with the GF Value™ verdict, which indicates that VIAV is significantly overvalued. Such a disparity may cause investors to reevaluate their positions, particularly in light of the current market sentiment.
What Does VIAV's GF Score™ Tell Us? MetricRating GF Score™58/100 Financial Strength3/10 Profitability5/10 Growth7/10 Valuation1/10 Momentum3/10 The GF Score™ of 58/100 suggests that VIAV is positioned in the average range compared to other stocks. The strongest aspect of the company is its growth rank of 7/10, indicating potential for growth in its operations. However, its valuation rank of 1/10 is concerning, highlighting significant overvaluation as per the current market price. Additionally, the financial strength rank of 3/10 suggests that the company may be facing challenges in its financial position, which could impact its long-term sustainability.
What Are Insiders Doing with VIAV Stock? Recent insider activity shows that insiders have sold $28.0 million worth of shares over the past three months without any reported buying. This trend of selling without buying can be interpreted as a lack of confidence from those who have intimate knowledge of the company's operations and prospects. Such activity can act as a cautionary signal for potential investors, as it may indicate that insiders do not believe the stock is undervalued or poised for significant appreciation in the near term.
What This Means for Investors Based on the GF Value™ assessment, Viavi Solutions Inc VIAV is currently overvalued. The significant discrepancy between the current market price and the estimated intrinsic value suggests caution for potential investors. The lack of insider buying further compounds this sentiment, indicating that the stock may face downward pressure in the future.
For the complete analysis, visit the Viavi Solutions Inc VIAV stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is VIAV's GF Score™?
VIAV's GF Score™ is 58/100, indicating it is positioned in the average range among its peers, suggesting moderate potential for long-term returns.
Is VIAV overvalued or undervalued?
VIAV is currently overvalued, with a GF Value™ of $12.98 compared to its market price of $49.75, indicating a substantial disconnect.
What is VIAV's P/E ratio?
VIAV's forward P/E ratio is 39.0x, which is significantly lower than its 5-year median P/E of 90.9x, aligning with the GF Value™ assessment of being overvalued.
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 VIAV Q3 revenues rose 42.8% YoY to $406.8M, beating estimates on strong NSE and OSP segment growth.NSE revenues surged 54.4% on data center, aerospace demand and Spirent acquisition contributions.Earnings hit 27 cents, topping estimates; Q4 revenues seen at $427M-$437M with solid margins. Viavi Solutions ((VIAV - Free Report) ) is a global leader in test and measurement and optical technologies. Their 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, they develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.
Here's what I wrote when I made my first buy of VIAV shares in the TAZR Trader portfolio on April 7 at $38...
This $8 billion global leader in test, measurement, and optical assurance is in a strong uptrend (since their Dec quarter earnings reported in late Jan) because their technology secures and validates the infrastructure of the datacenter ecosystem and more.
It was a Zacks #1 Rank in Feb-Mar as estimates jumped, but has fallen out of the top tiers as that 60-day window has passed. I didn't look at the company then because there was so much more on my radar.
Because moving to higher speeds and CPO (co-packaged optics) introduces severe signal integrity issues like jitter and noise, testing isn't just a one-time hurdle. It is a massive, overlapping super-cycle that must scale directly with optical complexity to prevent big bottlenecks in data transfer.
This is why peer Aehr Test Systems (
(AEHR - Free Report) ) launched 40% in two days recently. I did look at AEHR last month, but it has both negative sales and earnings growth, so I passed.VIAV sales estimates are projected to grow 35% this fiscal year (ends June) to $1.46 billion. And EPS of $0.80 are growing 70%.
(end of TAZR Buy Alert notes 4/7)
Last week, I chose VIAV for the Zacks Top Stock Picks Video which has a lot of good info in it, including snapshots of Wall Street analyst price targets before-and-after earnings. Spoiler: they were way behind on this growth story and so investors who saw the Zacks #1 Rank in Q1 were early and have been well-rewarded.
Speaking of earnings, here are some Zacks Research System notes on their recent report card April 29 which popped the stock up to new highs around $60...
Viavi delivered strong Q3 fiscal 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimates.
The company posted a solid 42.8% year-over-year increase in revenues, supported by strong demand from data centers, continued 5G and fiber network upgrades, steady aerospace and defense demand, and contributions from the Spirent product line buyout.Net income on a GAAP basis was $6.4 million or 3 cents per share compared with $19.5 million or 9 cents per share in the prior-year quarter. Despite top-line growth, higher operating expenses and taxes impacted the bottom line.
Non-GAAP net income in the reported quarter was $67.6 million or 27 cents per share compared with $33.9 million or 15 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 3 cents.
Revenue Landscape
Net sales increased to $406.8 million from $284.8 million in the year-ago quarter, primarily driven by strong performance in its Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments. The top line beat the consensus estimate of $393.5 million.
In the third quarter of fiscal 2026, the NSE segment generated $321.5 million in revenues, up 54.4% year over year. The segment accounted for 79% of total revenues. Acquisition of Spirent product lines and strong demand across lab, production and field products, mainly from the data center ecosystem and aerospace & defense sectors, drove solid sales growth in this segment.
The OSP segment revenues were $85.3 million, up 11.4% year over year, driven by strong demand for 3D Sensing and anti-counterfeiting.
Net sales from the Americas totaled $182.8 million, up from $108.1 million in the year-ago quarter. Revenues from Asia-Pacific were $128.2 million, up 27.3% year over year. Revenues from Europe, Middle East, and Africa increased to $95.8 million from the prior-year quarter’s tally of $76 million.
Institutional Buyers Pour In
As the final tallies filtered into the SEC 13F Q1 filings on Monday, we saw an impressive demand for VIAV shares.
Active Positions Holders Shares
Increased Positions 280 82,807,103
Decreased Positions 198 46,691,368
Held Positions 54 132,246,097
Bottom line: I am a buyer of VIAV now near $50 and on a potential gap fill to $45-46.
, /PRNewswire/ -- (NASDAQ: VIAV) Viavi Solutions Inc. ("VIAVI") today announced plans to offer, subject to market and other conditions, approximately $500 million of shares of its common stock in an underwritten public offering. VIAVI will grant the underwriters a 30-day option to purchase up to an additional 15% of the number of shares of common stock from VIAVI at the proposed offering price, less underwriting discounts and commissions. All of the shares of common stock in the proposed offering will be sold by VIAVI. There can be no assurance as to whether or when the proposed offering may be completed, or the actual size or terms of the proposed offering.
VIAVI intends to use the net proceeds of the proposed offering to repay the $450 million aggregate principal amount of its Term Loan B. Any excess net proceeds will be used to fund working capital or for other general corporate purposes.
Stifel and Needham & Company are acting as joint book-running managers for the proposed offering. UBS Investment Bank is also acting as a bookrunner for the proposed offering.
The securities described above will be offered by VIAVI pursuant to a shelf registration statement (including a base prospectus) on Form S-3 (File No. 333-289490) filed by VIAVI on August 11, 2025 with the Securities and Exchange Commission (SEC), which was automatically effective upon filing. A preliminary prospectus supplement and accompanying prospectus relating to the proposed offering will be filed with the SEC and will be available for free on the SEC's website at http://www.sec.gov. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the proposed offering, when available, may be obtained from: Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720 or by email at [email protected]; Needham and Company, LLC, Attention: 250 Park Avenue, 10th Floor, New York, NY 10177, Attn: Prospectus Department, by telephone at (800) 903-3268 or by email at [email protected]; or UBS Securities LLC, Attention: Prospectus Department, UBS Investment Bank, 11 Madison Avenue, New York, New York 10010 or by email at [email protected].
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications. In addition, we develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Examples of such statements include, but are not limited to, statements relating to VIAVI's expectations regarding the completion, timing and size of the proposed offering and the anticipated use of proceeds. Such statements are based on management's current expectations, but actual results may differ materially due to various risks and uncertainties, including, but not limited to, risks and uncertainties related to whether or not VIAVI will be able to raise capital through the sale of its securities, the final terms of the proposed offering, market and other conditions, and the satisfaction of customary closing conditions related to the proposed offering. There can be no assurance that VIAVI will be able to complete the proposed offering on the anticipated terms, or at all. You should not place undue reliance on these forward-looking statements. Additional risks and uncertainties relating to the proposed offering, VIAVI and its business can be found under the heading "Risk Factors" in VIAVI's Quarterly Report on Form 10-Q for the quarter ended March 28, 2026, which was filed with the SEC on April 30, 2026, and other filings with the SEC, and in the preliminary prospectus supplement related to the proposed offering to be filed with the SEC on or about the date hereof. Any forward-looking statements that VIAVI makes in this press release speak only as of the date of this press release. VIAVI assumes no obligation to update its forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.
, /PRNewswire/ -- (NASDAQ: VIAV) Viavi Solutions Inc. ("VIAVI") today announced the pricing of an underwritten public offering of 11,111,111 shares of its common stock at a price to the public of $45.00 per share, before underwriting fees. The gross proceeds to VIAVI from the offering, before deducting underwriting fees and other offering expenses payable by VIAVI, are expected to be approximately $500 million. The offering is expected to close on May 21, 2026, subject to customary closing conditions. Additionally, VIAVI has granted the underwriters a 30-day option to purchase up to an additional 1,666,666 shares of common stock from VIAVI at the public offering price, less underwriting fees. All of the shares of common stock in the offering will be sold by VIAVI.
VIAVI intends to use the net proceeds of the offering to repay the $450 million aggregate principal amount of its Term Loan B. Any excess net proceeds will be used to fund working capital or for other general corporate purposes.
Stifel and Needham & Company are acting as joint book-running managers for the offering. UBS Investment Bank is also acting as a bookrunner for the offering. B. Riley Securities, Northland Capital Markets, Rosenblatt, and BMO Capital Markets are acting as co-managers.
The securities described above are being offered by VIAVI pursuant to a shelf registration statement (including a base prospectus) on Form S-3 (File No. 333-289490) filed by VIAVI on August 11, 2025 with the Securities and Exchange Commission (SEC), which was automatically effective upon filing. A preliminary prospectus supplement and accompanying prospectus relating to the offering have been filed, and a final prospectus supplement and accompanying prospectus relating to the offering will be filed, with the SEC and can be accessed for free on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus relating to the offering, when available, may be obtained from: Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720 or by email at [email protected]; Needham and Company, LLC, Attention: 250 Park Avenue, 10th Floor, New York, NY 10177, Attn: Prospectus Department, by telephone at (800) 903-3268 or by email at [email protected]; or UBS Securities LLC, Attention: Prospectus Department, UBS Investment Bank, 11 Madison Avenue, New York, New York 10010 or by email at [email protected].
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications. In addition, we develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Examples of such statements include, but are not limited to, statements relating to VIAVI's expectations regarding the timing, gross proceeds and completion of the offering and the anticipated use of proceeds. Such statements are based on management's current expectations, but actual results may differ materially due to various risks and uncertainties, including, but not limited to, risks and uncertainties related to market and other conditions, and the satisfaction of customary closing conditions related to the offering. There can be no assurance that VIAVI will be able to complete the offering on the anticipated terms, or at all. You should not place undue reliance on these forward-looking statements. Additional risks and uncertainties relating to the offering, VIAVI and its business can be found under the heading "Risk Factors" in VIAVI's Quarterly Report on Form 10-Q for the quarter ended March 28, 2026, which was filed with the SEC on April 30, 2026, and other filings with the SEC, and in the preliminary prospectus supplement related to the offering filed with the SEC on May 19, 2026. Any forward-looking statements that VIAVI makes in this press release speak only as of the date of this press release. VIAVI assumes no obligation to update its forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.
, /PRNewswire/ -- (NASDAQ: VIAV) Viavi Solutions Inc. ("VIAVI") today announced the pricing of an underwritten public offering of 11,111,111 shares of its common stock at a price to the public of $45.00 per share, before underwriting fees. The gross proceeds to VIAVI from the offering, before deducting underwriting fees and other offering expenses payable by VIAVI, are expected to be approximately $500 million. The offering is expected to close on May 21, 2026, subject to customary closing conditions. Additionally, VIAVI has granted the underwriters a 30-day option to purchase up to an additional 1,666,666 shares of common stock from VIAVI at the public offering price, less underwriting fees. All of the shares of common stock in the offering will be sold by VIAVI.
VIAVI intends to use the net proceeds of the offering to repay the $450 million aggregate principal amount of its Term Loan B. Any excess net proceeds will be used to fund working capital or for other general corporate purposes.
Stifel and Needham & Company are acting as joint book-running managers for the offering. UBS Investment Bank is also acting as a bookrunner for the offering. B. Riley Securities, Northland Capital Markets, Rosenblatt, and BMO Capital Markets are acting as co-managers.
The securities described above are being offered by VIAVI pursuant to a shelf registration statement (including a base prospectus) on Form S-3 (File No. 333-289490) filed by VIAVI on August 11, 2025 with the Securities and Exchange Commission (SEC), which was automatically effective upon filing. A preliminary prospectus supplement and accompanying prospectus relating to the offering have been filed, and a final prospectus supplement and accompanying prospectus relating to the offering will be filed, with the SEC and can be accessed for free on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus relating to the offering, when available, may be obtained from: Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720 or by email at [email protected]; Needham and Company, LLC, Attention: 250 Park Avenue, 10th Floor, New York, NY 10177, Attn: Prospectus Department, by telephone at (800) 903-3268 or by email at [email protected]; or UBS Securities LLC, Attention: Prospectus Department, UBS Investment Bank, 11 Madison Avenue, New York, New York 10010 or by email at [email protected].
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About VIAVI
VIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications. In addition, we develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Examples of such statements include, but are not limited to, statements relating to VIAVI's expectations regarding the timing, gross proceeds and completion of the offering and the anticipated use of proceeds. Such statements are based on management's current expectations, but actual results may differ materially due to various risks and uncertainties, including, but not limited to, risks and uncertainties related to market and other conditions, and the satisfaction of customary closing conditions related to the offering. There can be no assurance that VIAVI will be able to complete the offering on the anticipated terms, or at all. You should not place undue reliance on these forward-looking statements. Additional risks and uncertainties relating to the offering, VIAVI and its business can be found under the heading "Risk Factors" in VIAVI's Quarterly Report on Form 10-Q for the quarter ended March 28, 2026, which was filed with the SEC on April 30, 2026, and other filings with the SEC, and in the preliminary prospectus supplement related to the offering filed with the SEC on May 19, 2026. Any forward-looking statements that VIAVI makes in this press release speak only as of the date of this press release. VIAVI assumes no obligation to update its forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.
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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Viavi Solutions (VIAV - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Viavi Solutions currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for VIAV that show why this communications equipment company shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For VIAV, shares are up 0.43% over the past week while the Zacks Communication - Components industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 6.13% compares favorably with the industry's 4.68% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Viavi Solutions have increased 63.81% over the past quarter, and have gained 438.83% in the last year. In comparison, the S&P 500 has only moved 8.01% and 28.78%, respectively.
Investors should also take note of VIAV's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now VIAV is averaging 7,193,030 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with VIAV.
Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost VIAV's consensus estimate, increasing from $0.84 to $0.93 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that VIAV is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Viavi Solutions on your short list.
The consensus price target hints at a 30.5% upside potential for Viavi Solutions (VIAV). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
On May 26, 2026, Viavi Solutions Inc VIAV shares rose 8.6% to a current price of $53.79, reflecting a significant upward trend in its stock performance over the past year, which has seen a remarkable increase of 491.8%. The stock has fluctuated within a 52-week range of $8.87 to $60.43, indicating substantial volatility.
GF Value™ verdict: The current price is $53.79, while the GF Value™ estimates fair value at $13.02, indicating that the stock is 313.1% overvalued.GF Score™: With a score of 58/100, VIAV's rating is considered average, suggesting mixed performance across key financial metrics.Most notable signal: Insiders have sold $27.6 million in stock over the last three months, with no reported buying activity. Is VIAV Overvalued or Undervalued? According to the GF Value™, Viavi Solutions Inc is significantly overvalued, with a current market price of $53.79 compared to a calculated intrinsic value of $13.02. This substantial difference suggests a lack of margin of safety for potential investors, as the stock is trading at a premium of 313.1% over its estimated fair value. This level of overvaluation poses significant risks; if the market corrects or if company performance does not meet investor expectations, the stock price could decline sharply.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given that VIAV's current price far exceeds its GF Value™, it raises concerns about the sustainability of such high valuations in the long term. Investors may need to exercise caution, considering the potential for a market adjustment.
How Does VIAV's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 42.0x 92.2x VIAV's current forward P/E ratio of 42.0x is significantly lower than its 5-year median P/E of 92.2x, suggesting that the stock is trading below its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict of overvaluation, as the substantial difference between the forward P/E and historical median indicates a disconnect between current pricing and past valuation metrics.
What Does VIAV's GF Score™ Tell Us? Metric Rating GF Score™ 58/100 Financial Strength 3/10 Profitability 5/10 Growth 7/10 Valuation 1/10 Momentum 3/10 The GF Score™ provides a comprehensive overview of VIAV's financial health and performance metrics. With an overall score of 58/100, the company demonstrates average performance. The strongest area is growth, rated 7/10, suggesting potential for future expansion. However, the valuation rank is notably weak at 1/10, reinforcing the notion that the stock is currently overvalued. Financial strength is also a concern with a low score of 3/10, indicating potential vulnerabilities in the company’s financial position.
What Are Insiders Doing with VIAV Stock? Recent insider activity at Viavi Solutions Inc shows a significant trend, with insiders selling $27.6 million in stock over the past three months and no reported buying activity. This pattern of selling could be interpreted as a lack of confidence in the company's future performance from those who are closest to its operations. Such insider actions often serve as crucial signals for potential investors, as insider buying can indicate bullish sentiment, while selling may suggest caution.
What This Means for Investors Based on the analysis of GF Value™, Viavi Solutions Inc is currently overvalued. With a significant margin of overvaluation at 313.1%, potential investors may want to approach with caution, given the risks associated with such inflated valuations.
For the complete analysis, visit the Viavi Solutions Inc VIAV stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is VIAV's GF Score™?
VIAV has a GF Score™ of 58/100, indicating average performance across key financial metrics.
Is VIAV overvalued or undervalued?
VIAV is currently overvalued according to the GF Value™, which estimates fair value at $13.02, significantly lower than the current price of $53.79.
What is VIAV's P/E ratio?
VIAV's forward P/E ratio is 42.0x, which is below its 5-year median P/E of 92.2x, suggesting the stock may be trading at a more favorable valuation compared to its historical levels.
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].
