Viavi Solutions (NASDAQ:VIAV) Announces Earnings Results, Beats Estimates By $0.05 EPS

Viavi Solutions (NASDAQ:VIAV) issued its quarterly earnings results on Wednesday. The communications equipment provider reported $0.27 earnings per share for the quarter, beating analysts’ consensus estimates of $0.22 by $0.05, FiscalAI reports. The firm had revenue of $406.80 million for the quarter, compared to analyst estimates of $393.81 million. Viavi Solutions had a negative net margin of 3.38% and a positive return on equity of 13.03%. Viavi Solutions’s quarterly revenue was up 42.8% compared to the same quarter last year. During the same period last year, the company posted $0.15 EPS. Viavi Solutions updated its Q4 2026 guidance to 0.290-0.310 EPS.

Here are the key takeaways from Viavi Solutions’ conference call:

• Q3 beat expectations — revenue of $406.8M, operating margin of 21%, and EPS of $0.27 all came in above the high end of guidance with strong sequential (+10.2%) and YoY (+42.8%) growth.
• NSE momentum — NSE revenue was $321.5M (+54.4% YoY) driven by the Spirent product-line acquisition and strong lab, production and field demand from the AI/data-center and aerospace & defense markets, with management expecting data-center strength to continue.
• Q4 outlook — company guides revenue of $427M–$437M, operating margin ~22.7% and EPS $0.29–$0.31, expecting sequential growth across both NSE and OSP.
• Liquidity and dilution — cash and short-term investments fell to $508M (from $772.1M), operating cash used $26.3M, the company paid earn-outs and prepaid $150M of Term Loan B, issued ~1.8M shares on convertible conversion and did not repurchase stock, raising the fully diluted share count to ~249.5M (guidance ~256M).
• OSP results were mixed — revenue rose 11.4% to $85.3M and operating margin improved to 35.3%, but gross margin declined 130 bps due to unfavorable product mix, which could pressure margins if the mix persists.

Viavi Solutions Trading Up 14.9%

Shares of NASDAQ VIAV traded up $6.79 during midday trading on Thursday, reaching $52.32. 5,684,251 shares of the stock were exchanged, compared to its average volume of 5,619,082. Viavi Solutions has a twelve month low of $8.10 and a twelve month high of $60.43. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.32 and a current ratio of 2.61. The company has a 50 day simple moving average of $35.76 and a 200 day simple moving average of $24.62. The stock has a market capitalization of $12.11 billion, a P/E ratio of -295.34 and a beta of 0.85.

Insider Transactions at Viavi Solutions

In related news, SVP Gary W. Staley sold 24,237 shares of Viavi Solutions stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $23.93, for a total value of $579,991.41. Following the completion of the sale, the senior vice president owned 136,267 shares in the company, valued at approximately $3,260,869.31. This trade represents a 15.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Paul Mcnab sold 3,551 shares of Viavi Solutions stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $32.89, for a total transaction of $116,792.39. Following the completion of the sale, the executive vice president owned 18,198 shares of the company’s stock, valued at $598,532.22. This trade represents a 16.33% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 485,772 shares of company stock worth $12,736,803 in the last three months. Company insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Viavi Solutions

Several institutional investors have recently modified their holdings of VIAV. Hsbc Holdings PLC acquired a new position in Viavi Solutions during the fourth quarter worth about $218,000. Corient Private Wealth LLC grew its position in Viavi Solutions by 3.6% during the fourth 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 during the period. Invesco Ltd. grew its position in Viavi Solutions by 116.0% during the fourth quarter. Invesco Ltd. now owns 3,809,513 shares of the communications equipment provider’s stock worth $67,886,000 after buying an additional 2,045,702 shares during the period. Vident Advisory LLC acquired a new position in Viavi Solutions during the fourth quarter worth about $410,000. Finally, State of Tennessee Department of Treasury grew its position in Viavi Solutions by 4.0% during the fourth quarter. State of Tennessee Department of Treasury now owns 86,904 shares of the communications equipment provider’s stock worth $1,549,000 after buying an additional 3,340 shares during the period. 95.54% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Viavi Solutions

Here are the key news stories impacting Viavi Solutions this week:

• Positive Sentiment: Q3 beat: Viavi reported EPS of $0.27 and revenue of $406.8M (up 42.8% YoY), beating consensus on both top and bottom lines; management highlighted improved operating profit and cash from operations. VIAVI Announces Third Quarter Fiscal 2026 Results
• Positive Sentiment: Raised guidance: Viavi updated FY-Q4 guidance to $0.290–$0.310 EPS and $427M–$437M revenue (well above consensus ~$0.23 / $402M), a major driver of the stock move as it signals continued demand and margin improvement. View Press Release / Guidance
• Positive Sentiment: Analyst sentiment improving: At least one recent analyst update raised VIAV’s price target, supporting the rally and institutional interest. Price Target Increased
• Neutral Sentiment: Market backdrop — data center demand tailwind offset by policy/permit hurdles: reports note a strong U.S. data-center cycle that benefits suppliers like Viavi, but also flag regulatory and permitting constraints that could temper near-term spend. Viavi, Generac lift forecasts as US data center boom meets policy hurdles
• Negative Sentiment: GAAP vs. reported metrics and profit mix: some outlets highlighted that GAAP net income and GAAP EPS details look weaker year-over-year (Quiver reported a much smaller diluted EPS and lower net income), creating ambiguity about the sustainability of margin gains and causing mixed market reactions. Viavi Solutions (VIAV) Stock Falls on Q3 2026 Earnings
• Negative Sentiment: Insider and balance-sheet flags: recent reporting highlights concentrated insider share sales over the past six months and a higher debt-to-equity ratio (~1.46); investors should weigh these governance / leverage signals alongside the operational beat. Insider & balance-sheet notes (Quiver)

Analyst Upgrades and Downgrades

VIAV has been the topic of a number of research reports. Susquehanna raised their price target on shares of Viavi Solutions from $18.00 to $25.00 and gave the company a “positive” rating in a research note on Thursday, January 29th. Wall Street Zen downgraded shares of Viavi Solutions from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. B. Riley Financial increased their price objective on shares of Viavi Solutions from $26.00 to $53.00 and gave the company a “buy” rating in a report on Friday, April 24th. Needham & Company LLC increased their price objective on shares of Viavi Solutions from $28.00 to $36.00 and gave the company a “buy” rating in a report on Monday, March 2nd. Finally, Rosenblatt Securities increased their price objective on shares of Viavi Solutions from $27.00 to $42.00 and gave the company a “buy” rating in a report on Wednesday, March 18th. Six research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $28.88.

Viavi Solutions Company Profile

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.