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Viavi Solutions
(NASDAQ:VIAV)
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Rating:59Neutral
Price Target:
$32.00
▼(-15.14% Downside)
Action:Reiterated
Date:10/23/26
VIAV scores in the upper-mid range primarily due to improving financial strength and strong cash-flow resilience (including sharply higher free cash flow and better leverage), reinforced by a positive earnings call with strong growth, margin expansion, and constructive guidance. These positives are tempered by clearly bearish technicals (price far below key moving averages with negative MACD) and weak valuation signals (negative P/E and no dividend yield), which raise near-term risk despite improving fundamentals.
Positive Factors
Revenue Growth
The sharp annual revenue increase indicates stronger product adoption and expanding demand across Viavi’s served markets. Sustained growth can improve operating leverage, support investment in new solutions, and strengthen the company’s competitive position over the next several quarters.
Negative Factors
Inconsistent Profitability
The return to a net loss shows that strong revenue and gross margins have not yet translated into consistently durable bottom-line performance. Weaker operating margins may limit reinvestment capacity and make future earnings more sensitive to changes in demand and product mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The sharp annual revenue increase indicates stronger product adoption and expanding demand across Viavi’s served markets. Sustained growth can improve operating leverage, support investment in new solutions, and strengthen the company’s competitive position over the next several quarters.
Read all positive factors
Viavi Solutions Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures profitability after operating costs for each segment, indicating which parts of the business are actually earning money versus those that require investment or are loss-making. Highlights where cost control, scale, or pricing power are strong and which segments are likely to fund future growth or drag on overall results.
Measures profitability after operating costs for each segment, indicating which parts of the business are actually earning money versus those that require investment or are loss-making. Highlights where cost control, scale, or pricing power are strong and which segments are likely to fund future growth or drag on overall results.
Data provided by:
The Fly
The FlyViavi Solutions (VIAV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.49B
Dividend YieldN/A
Average Volume (3M)5.64M
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth40.03%
EPS Growth-193.79%
CountryUS
Employees4,100
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.13
Shares Outstanding245,922,120
10 Day Avg. Volume5,158,957
30 Day Avg. Volume5,638,433
Financial Highlights & Ratios
PEG Ratio2.02
Price to Book (P/B)7.55
Price to Sales (P/S)7.20
P/FCF Ratio132.02
Enterprise Value/Market Cap1.67
Enterprise Value/Revenue8.22
Enterprise Value/Gross Profit14.25
Enterprise Value/Ebitda72.52
Forecast
1Y Price Target
$61.43Price Target Upside62.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.64
Revenue Forecast (FY)$1.89B
Viavi Solutions Business Overview & Revenue Model
Company Description
Viavi Solutions Inc. offers a comprehensive suite of solutions for network testing, monitoring, and assurance to a global customer base. These clients include telecommunication service providers, businesses, manufacturers of network equipment, ori...
How the Company Makes Money
Viavi primarily makes money by selling hardware instruments, software, and related services that help customers validate performance, troubleshoot issues, and assure the quality of networks and electronic systems. Key revenue streams generally inc...
Viavi Solutions Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented a meaningfully positive operating and financial beat: strong top-line beats, large year-over-year growth (Q4 +52.5% and FY +40%), substantial margin expansion, strong segment performance in NSE (driven by data center and Spirent products) and improved cash position with debt paydown. Near-term guidance is constructive with higher margins and EPS guidance. Offsetting items include dilution from recent share issuance, reliance on non-recurring tariff refunds that boosted margins/EPS, Spirent seasonality, and continued weak wireless/service-provider demand. Overall, the positives (large beats, margin expansion, strong segment momentum, cash/debt improvements, and optimistic forward guide) outweigh the negatives.Positive Updates
Quarterly Revenue Beat and Strong YoY Growth
Q4 net revenue of $443.1M beat guidance ($427M–$437M), was up 8.9% sequentially and up 52.5% year-over-year.
Negative Updates
Share Count Dilution
Fully diluted share count rose to ~261M in the quarter from 227M a year ago (≈+15.0%), driven by share issuance and convertible-note exchanges, which dilutes EPS going forward. Guidance expects ~268M shares in Q1.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly Revenue Beat and Strong YoY Growth
Q4 net revenue of $443.1M beat guidance ($427M–$437M), was up 8.9% sequentially and up 52.5% year-over-year.
Read all positive updates
Company Guidance
Viavi guided Q1 FY2027 revenue of $450–460M (expecting sequential growth) with NSE at $360–368M and OSP at $90–92M; company operating margin of 27.1% ±40 bps (including roughly a 100‑bp net benefit from an ~$11M tariff refund that is largely offset by the additional 14th‑week variable costs), NSE margin 23.1% ±50 bps, and OSP margin 43.2% ±20 bps; EPS $0.40–0.42 (including about $0.02 net benefit from tariff refunds/additional week), tax expense ≈ $12M ±$0.5M, other income/expense ≈ net $2.5M expense, and diluted share count ≈ 268M.Viavi Solutions Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
71
Positive
Cash Flow
74
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.52B | 1.08B | 1.00B | 1.11B | 1.29B |
| Gross Profit | 875.40M | 616.30M | 569.60M | 630.10M | 763.80M |
| EBITDA | 172.00M | 131.90M | 101.20M | 157.30M | 163.80M |
| Net Income | -30.40M | 34.80M | -25.80M | 25.50M | 15.50M |
Balance Sheet | |||||
| Total Assets | 2.71B | 1.99B | 1.74B | 1.85B | 1.83B |
| Cash, Cash Equivalents and Short-Term Investments | 649.80M | 425.30M | 491.20M | 521.10M | 561.30M |
| Total Debt | 698.80M | 692.30M | 687.20M | 781.00M | 744.50M |
| Total Liabilities | 1.26B | 1.21B | 1.05B | 1.16B | 1.16B |
| Stockholders Equity | 1.45B | 780.20M | 681.60M | 690.80M | 671.70M |
Cash Flow | |||||
| Free Cash Flow | 82.80M | 62.00M | 96.90M | 63.00M | 105.60M |
| Operating Cash Flow | 113.90M | 89.80M | 116.40M | 114.10M | 178.10M |
| Investing Cash Flow | -426.80M | -128.40M | -21.60M | -127.10M | -71.00M |
| Financing Cash Flow | 541.00M | -23.60M | -125.70M | -50.00M | -210.40M |
Viavi Solutions Technical Analysis
Negative
37.71
Price Trends
38.56
Negative
41.10
Negative
38.38
Negative
Market Momentum
-1.98
Positive
32.40
Neutral
9.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIAV, the sentiment is Negative. The current price of 37.71 is below the 20-day moving average (MA) of 40.25, below the 50-day MA of 38.56, and below the 200-day MA of 38.38, indicating a bearish trend. The MACD of -1.98 indicates Positive momentum. The RSI at 32.40 is Neutral, neither overbought nor oversold. The STOCH value of 9.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VIAV.
Viavi Solutions Risk Analysis
Viavi Solutions disclosed 32 risk factors in its most recent earnings report. Viavi Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Viavi Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $45.42B | 69.32 | 22.82% | ― | 32.57% | 367.53% | |
76 Outperform | $35.28B | 17.99 | 18.10% | 2.92% | 3.88% | -16.99% | |
74 Outperform | $419.89B | 31.70 | 27.39% | 1.57% | 11.77% | 27.65% | |
71 Outperform | $68.50B | -8.13 | -300.07% | ― | 83.22% | -24212.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $7.49B | -237.11 | -3.16% | ― | 40.03% | -193.79% | |
54 Neutral | $46.72B | 52.87 | 3.65% | 2.01% | 9.69% | -8.89% |
* Technology Sector Average
VIAV
Viavi Solutions
30.45
16.50
118.24%
CIEN
Ciena
320.26
137.72
75.45%
CSCO
Cisco Systems
106.50
36.41
51.94%
ERIC
Telefonaktiebolaget LM Ericsson
10.66
1.42
15.42%
NOK
Nokia
8.14
1.87
29.89%
LITE
Lumentum Holdings
756.17
562.37
290.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.