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1. Company Snapshot

1.a. Company Description

Viavi Solutions Inc.provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, original equipment manufacturers, government, and avionics customers worldwide.The company operates through three segments: Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP) segments.


The NE segment offers testing solutions that access the network to perform build-out and maintenance tasks.This segment provides solutions that include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks; and instrumentation for communication and safety.It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services.


The SE segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data.Its solutions include instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization.The OSP segment offers optical products for anti-counterfeiting, consumer and industrial, government, automotive, and industrial markets.


The company was formerly known as JDS Uniphase Corporation and changed its name to Viavi Solutions Inc.in August 2015.Viavi Solutions Inc.


was founded in 1923 and is headquartered in Scottsdale, Arizona.

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1.b. Last Insights on VIAV

Viavi Solutions' recent performance is driven by strong Q2 earnings, surpassing estimates with $0.13 per share, driven by healthy demand trends in multiple verticals. The company's focus on innovation, strategic buyouts, and steady demand growth in 5G wireless, fiber, and 3D sensing markets are expected to be major growth drivers. Additionally, Needham analyst Ryan Koontz upgraded Viavi Solutions to Buy, citing a $15 price forecast, further boosting optimism.

1.c. Company Highlights

2. Viavi Solutions' Strong Q2 Results Driven by NSE Revenue Growth

Viavi Solutions reported a robust fiscal second quarter 2026, with net revenue reaching $369.3 million, at the high end of its guidance range. The revenue growth was driven by a 23.5% sequential and 36.4% year-over-year increase. The operating margin for the quarter stood at 19.3%, above the high end of the guidance range. The company's actual EPS came in at $0.22, beating estimates of $0.19. The strong financial performance was largely driven by the NSE revenue, which came in at $291.5 million, up 45.8% year-over-year.

Publication Date: Mar -03

📋 Highlights
  • Revenue Performance:: Reported net revenue of $369.3M, at the high end of guidance, up 23.5% sequentially and 36.4% YoY.
  • Operating Margin:: Achieved 19.3% margin, exceeding the high end of its guidance range.
  • NSE Revenue Growth:: NSE revenue reached $291.5M, up 45.8% YoY, driven by acquisitions and demand for production tools.
  • Restructuring Plan:: Announced $32M restructuring charges impacting ~5% of the workforce to realign resources with strategic priorities.
  • 2026 Guidance:: Forecasts revenue of $386M–$400M with operating margin of 19.7% ±50 bps, reflecting confidence in data center and aerospace growth.

Revenue Mix and Growth Drivers

The company's revenue mix is now closer to 40% service provider, 45% data center, and 15% aerospace and defense, with strong growth seen in the data center ecosystem driven by semis, modules, systems, and NAMS. Oleg Khaykin mentioned that the company is seeing exciting opportunities in resilient PNT and P and C timing, driven by autonomous systems and data center synchronization requirements. The growth in data center is expected to continue, driven by hyperscalers investing heavily in monitoring and testing equipment.

Restructuring and Operational Efficiencies

Viavi approved a restructuring and workforce reduction plan to improve operational efficiencies, with approximately 5% of its global workforce impacted. The company expects to incur approximately $32 million in restructuring charges. Ilan Daskal stated that the restructuring is across multiple functions to operate under higher efficiency, with some savings to be reinvested in higher growth areas.

Valuation and Outlook

Viavi's current valuation metrics show a P/E Ratio of -189.38, P/B Ratio of 9.47, and P/S Ratio of 6.58. The company's revenue is expected to grow at 10.6% next year, according to analysts' estimates. With a decreasing exposure to the service provider market and a growing mix of aerospace, defense, and AI data center driven business, Viavi is well-positioned to benefit from the growing demand for fiber network monitoring and testing equipment.

Guidance and Future Expectations

The company guided revenue to be in the range of $386 million to $400 million, with an operating margin of 19.7% plus or minus 50 basis points. The first quarter is expected to be seasonally weak but with mid-single-digit sequential growth driven by the strength in data center, aerospace, defense, and sparing business.

3. NewsRoom

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Is Viavi Solutions Stock a Buy or Sell After the CMO Dumped 3,551 Shares?

Mar -03

Source: fool.com

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VIAVI to Showcase Breakthrough AI Fabric and Optical Test Advances at OFC 2026

Mar -03

Source: prnewswire.com

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Viavi Solutions (NASDAQ:VIAV) Reaches New 1-Year High Following Analyst Upgrade

Mar -03

Source: defenseworld.net

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DOCOMO and VIAVI Demonstrate AI-Driven Network Control For 6G

Mar -02

Source: prnewswire.com

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AXQ Capital LP Has $413,000 Stock Position in Viavi Solutions Inc. $VIAV

Feb -26

Source: defenseworld.net

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VIAVI Speeds Multifiber Certification with Optical Loss Test Set for Testing Up to 24 Fibers Simultaneously

Feb -24

Source: prnewswire.com

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CenterBook Partners LP Takes $1.12 Million Position in Viavi Solutions Inc. $VIAV

Feb -21

Source: defenseworld.net

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Viavi Solutions' CEO Sold Shares Worth $1.9 Million. Is the Stock a Buy or Sell?

Feb -19

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.80%)

6. Segments

Network Enablement

Expected Growth: 3.5%

Viavi Solutions Inc.'s Network Enablement segment growth of 3.5% is driven by increasing demand for 5G network deployment, rising need for network testing and validation, and growing adoption of cloud-based network infrastructure. Additionally, the segment benefits from the company's strong relationships with major network equipment manufacturers and communication service providers.

Optical Security and Performance

Expected Growth: 4.5%

Viavi Solutions Inc.'s Optical Security and Performance segment growth of 4.5% is driven by increasing demand for 5G and fiber optic infrastructure, rising security concerns, and growing adoption of cloud-based services. Additionally, the need for high-speed data transmission, network reliability, and quality assurance also contribute to this growth.

Service Enablement

Expected Growth: 3.8%

Viavi Solutions Inc.'s Service Enablement growth of 3.8% is driven by increasing demand for 5G network deployment, rising need for network testing and optimization, and growing adoption of cloud-based services. Additionally, the company's focus on innovation, strategic partnerships, and expansion into new markets also contribute to its growth.

7. Detailed Products

Network and Service Enablement

Viavi Solutions offers a range of network and service enablement products that help communication service providers and enterprises to plan, deploy, and operate their networks efficiently.

Service Assurance

Viavi's service assurance products provide real-time visibility into network and service performance, enabling operators to quickly identify and resolve issues, ensuring high-quality service delivery.

Network and Application Performance

Viavi's network and application performance products help organizations to optimize their network and application performance, ensuring fast and reliable access to critical business applications.

Optical Security and Performance Products

Viavi's optical security and performance products provide advanced optical testing and monitoring capabilities, ensuring the security and integrity of optical networks.

5G and 6G Research and Development

Viavi's 5G and 6G research and development products enable researchers and developers to design, test, and optimize 5G and 6G networks, ensuring the development of next-generation wireless technologies.

8. Viavi Solutions Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Viavi Solutions Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

Viavi Solutions Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Viavi Solutions Inc. relies on a few key suppliers for critical components, which gives these suppliers some bargaining power. However, the company's size and scale of operations help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for significant investments in research and development, manufacturing, and marketing.

Intensity Of Rivalry

The industry in which Viavi Solutions Inc. operates is highly competitive, with several established players competing for market share. This intense rivalry puts pressure on the company to innovate and differentiate its products and services.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.23%
Debt Cost 8.77%
Equity Weight 48.77%
Equity Cost 8.77%
WACC 8.77%
Leverage 105.05%

11. Quality Control: Viavi Solutions Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lantronix

A-Score: 4.4/10

Value: 6.2

Growth: 4.9

Quality: 4.3

Yield: 0.0

Momentum: 9.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Optical Cable

A-Score: 4.4/10

Value: 6.7

Growth: 4.3

Quality: 4.7

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Minim

A-Score: 4.2/10

Value: 6.2

Growth: 2.9

Quality: 4.3

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Infinera

A-Score: 4.1/10

Value: 7.2

Growth: 4.1

Quality: 2.2

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Viavi Solutions

A-Score: 4.0/10

Value: 1.1

Growth: 3.9

Quality: 4.8

Yield: 0.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Airgain

A-Score: 3.1/10

Value: 8.7

Growth: 2.3

Quality: 4.5

Yield: 0.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.13$

Current Price

33.13$

Potential

-0.00%

Expected Cash-Flows