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Viavi Solutions Inc

Viavi Solutions Inc

VIAV
$38.16USD↑+3.33%+1.23 today

MARKET CAP

9.4B

P/E (TTM)

49.6x

FWD P/E

31.0x

DAY RANGE

$35 – $39

52W RANGE

$10
$60

AI Summary

Stalk
TrimMedium

VIAV remains in a Stage 4 decline, permitting only bearish engagement. However, extreme oversold conditions and a bearish exhaustion signal caution against immediate selling. The medium-term bias stays bearish with price below the 9/21/50 EMA resistance band. Execution should focus on trimming exposure on failed rallies into the EMA region rather than selling into the current downside extension.

  • ↑Q3 revenue $406.8M (+42.8% YoY) exceeded guidance by 5.3%
  • ↑Operating margin rose to 21% from 17.6% a year ago
  • ↓Stock trades at high multiples, signaling potential overvaluation
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The case for & against

Bull & Bear analysis

Bullish

Viavi Solutions, Inc. (NASDAQ: VIAV) is a leader in the communications and optical solutions sector, primarily focusing on network service enablement (NSE) and optical security and performance (OSP). The company serves various markets, including telecommunications, data centers, and aerospace and defense, where it provides innovative testing and measurement solutions. Viavi is strategically benefiting from current trends in AI and high-performance data networking systems, positioning itself for substantial growth as demand escalates in these high-tech industries.

Bull says

  • ↑Q3 revenue $406.8M (+42.8% YoY) exceeded guidance by 5.3%
  • ↑Operating margin rose to 21% from 17.6% a year ago
  • ↑NSE segment revenue $321.5M (+54.4% YoY) and OSP revenue $85.3M (+11.4% YoY)
  • ↑Repaid $150M term loan, enhancing debt profile and liquidity
  • ↑Spirant integration driving revenue synergies and margin expansion
  • ↑High momentum and liquidity factors support positive technical trend

Bear says

  • ↓Stock trades at high multiples, signaling potential overvaluation
  • ↓Negative profitability trends strain margins amid rising costs
  • ↓High short interest indicates market skepticism and volatility
  • ↓Heavy reliance on data center demand risks revenue if segment slows
  • ↓Tariff regulations and uncertain government contracts may impede growth
  • ↓Negative revision trends challenge analyst forecasts and investor sentiment

Investment themes with VIAV

Communication Equipment↓ -0.68%

Networking and telecom hardware providers

UI · EXTR · ADTN
Lin↓ -2.55%

MU · GLW · VRT

Earnings Call · Q3 2026 · Mgmt. Guidance

Updated 04-29-2026neutral

Transcript signals

Bull points

  • Net revenue for the quarter was $406.8 million, which is above the high end of our guidance range of $386.4 million.
  • Revenue was up 10.2% sequentially and on a year-over-year basis was up 42.8%.
  • Operating margin for the third fiscal quarter was 21%, above the high end of our guidance range of 19.2 and 20.2%.

Bear points

  • Total cash and short-term investments at the end of Q3 were $508 million, compared to $772.1 million in the second quarter of fiscal 2026.
  • Cash flow from operating activities for the quarter was a use of $26.3 million versus $7.8 million that we generated in the same period last year.
  • The cash flow was mainly impacted by the earn-out payments to inertial levs, timing of working capital, and employee variable costs.
Read full transcript analysis ›