Download PDF

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.

Show Full description

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' Q1 FY2026 Earnings: A Strong Start

Viavi Solutions reported a net revenue of $299.1 million for the first quarter of fiscal year 2026, surpassing the high end of their guidance range. The revenue was up 3% sequentially and 25.6% year-over-year. The operating margin for the quarter was 15.7%, also above the high end of the guidance range, and increased by 130 basis points from the prior quarter and 570 basis points year-over-year. Earnings per share (EPS) came in at $0.15, beating estimates of $0.13 and up $0.02 sequentially.

Publication Date: Nov -20

📋 Highlights
  • Revenue Growth:: Q1 FY2026 revenue reached $299.1M, up 25.6% YoY and 3% sequentially, exceeding guidance.
  • Operating Margin Expansion:: Operating margin rose to 15.7%, a 570 bps YoY increase and 130 bps QoQ, driven by efficiency.
  • NSE Segment Performance:: NSE revenue hit $216M, up 35.5% YoY, fueled by data center demand and Spirent integration.
  • Q2 Guidance:: Revenue projected at $360–370M, with NSE at $283–293M (including $45–55M from Spirent).
  • Margin Outlook:: Viavi expects 17.9% operating margin in Q2 (±60 bps), with Spirent contributing 13.6% margin (±70 bps).

Segment Performance

The Network and Service Enablement (NSE) segment revenue was $216 million, above the high end of the guidance range. On a year-over-year basis, NSE revenue was up 35.5% due to strong demand for lab and production as well as field products, mainly driven by the data center ecosystem and the acquisition of Inertial Labs. Oleg Khaykin, President and CEO, noted that the company's business mix at the end of the fiscal year was 50% service provider, 30% data center ecosystem, and 20% aerospace and defense.

Guidance and Outlook

For the second fiscal quarter of 2026, Viavi expects revenue in the range of $360 million to $370 million, with NSE revenue between $283 million and $293 million. The company expects strong quarter-on-quarter growth in NSE driven by continued strong demand from the data center ecosystem and aerospace and defense customers. Operating margin for Viavi is expected to be 17.9%, plus or minus 60 basis points.

Valuation and Growth Prospects

With a P/E Ratio of 236.68 and an EV/EBITDA of 30.63, the market seems to be pricing in significant growth expectations. Analysts estimate next year's revenue growth at 28.4%. The company's acquisition of Spirent is expected to be accretive within 12 months, and the integration is expected to expand margins further. The data center market is expected to grow due to increasing demand for high-speed interconnects and the need for reliable 10-gig, 100-gig traffic, positioning Viavi for potential long-term growth.

3. NewsRoom

Card image cap

VIAVI and QNu Labs Partner to Accelerate Quantum-Safe Network Security

Dec -04

Source: prnewswire.com

Card image cap

Edgestream Partners L.P. Raises Stock Holdings in Viavi Solutions Inc. $VIAV

Dec -04

Source: defenseworld.net

Card image cap

Creative Planning Sells 76,654 Shares of Viavi Solutions Inc. $VIAV

Nov -29

Source: defenseworld.net

Card image cap

Viav Solutions (VIAV) Up 5% Since Last Earnings Report: Can It Continue?

Nov -28

Source: zacks.com

Card image cap

VIAVI Receives Award from U.S. Department of Transportation to Advance Complementary Position, Navigation, and Timing (CPNT) for Critical Infrastructure

Nov -19

Source: prnewswire.com

Card image cap

Viavi Solutions Inc. (VIAV) Shareholder/Analyst Call Prepared Remarks Transcript

Nov -12

Source: seekingalpha.com

Card image cap

VIAVI and Calnex Simplify Open RAN Conformance and Performance with Comprehensive Pre-Certification Testbeds

Nov -06

Source: prnewswire.com

Card image cap

VIAVI Takes First Place at CHALLENGE.GOV Electronic Warfare (EW) Battlefield Realism Prize Challenge

Nov -04

Source: prnewswire.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: 4.0/10

Value: 6.1

Growth: 4.9

Quality: 4.3

Yield: 0.0

Momentum: 6.5

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Viavi Solutions

A-Score: 3.9/10

Value: 1.0

Growth: 3.7

Quality: 4.3

Yield: 0.0

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Optical Cable

A-Score: 3.9/10

Value: 6.2

Growth: 1.4

Quality: 4.9

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
Infinera

A-Score: 3.7/10

Value: 5.4

Growth: 4.1

Quality: 2.9

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Minim

A-Score: 3.6/10

Value: 6.2

Growth: 3.0

Quality: 4.7

Yield: 0.0

Momentum: 8.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Airgain

A-Score: 3.1/10

Value: 8.6

Growth: 2.3

Quality: 4.5

Yield: 0.0

Momentum: 0.0

Volatility: 3.0

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

18.32$

Current Price

18.32$

Potential

-0.00%

Expected Cash-Flows