Viavi Solutions (NASDAQ:VIAV) Shares Gap Up on Better-Than-Expected Earnings

Viavi Solutions Inc. (NASDAQ:VIAV) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $21.03, but opened at $23.01. Viavi Solutions shares last traded at $23.3350, with a volume of 6,356,486 shares trading hands.

The communications equipment provider reported $0.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.19 by $0.03. The company had revenue of $369.30 million for the quarter, compared to analysts’ expectations of $365.25 million. Viavi Solutions had a negative net margin of 3.38% and a positive return on equity of 13.03%. The business’s revenue was up 36.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.13 EPS. Viavi Solutions has set its Q3 2026 guidance at 0.220-4.000 EPS.

Viavi Solutions News Roundup

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

• Positive Sentiment: Q2 results beat expectations: VIAV reported $0.22 EPS (vs. $0.19 est.) and revenue of $369.3M, up 36% year‑over‑year — the beat and solid top‑line growth are driving optimism. VIAVI Solutions, Inc. Announces Second Quarter Fiscal 2026 Results
• Positive Sentiment: Management raised Q3 revenue guidance to $386M–$400M (well above consensus) and issued EPS guidance above expectations — investors view this as confirmation of durable demand from data center, 5G and defense end markets. Viavi anticipates $386M–$400M Q3 revenue with continued data center and aerospace momentum
• Positive Sentiment: Restructuring and cost actions (including a ~5% workforce reduction) were announced; the market cheered the expected margin improvement and the stock hit multi‑decade highs on the news. Viavi Solutions (VIAV) jumps to decades high on restructuring initiative
• Positive Sentiment: Analysts raised price targets and reiterated buys after the quarter (Needham, Susquehanna, Stifel among firms raising PTs), which supports further upside sentiment. Viavi Solutions (VIAV) PT Raised to $28 at Needham
• Neutral Sentiment: New product/IP expansion: Inertial Labs (a VIAVI company) launched IRINS, a LEO‑aided inertial navigation system addressing GNSS‑denied environments — strategic for defense/aerospace but likely a longer‑term revenue driver. Inertial Labs, a VIAVI Solutions Company, Launches IRINS LEO-Aided Inertial Navigation System
• Neutral Sentiment: Full transcripts and deep dives (earnings call/transcript coverage) add detail on segment mix (data center, NSE/OSP, aerospace) for investors modeling revenue sustainability. Viavi Solutions Inc. (VIAV) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Restructuring includes workforce reductions (~5%) — while supportive of margins, layoffs carry execution and execution‑risk headlines that can spur volatility and short‑term investor concern. Viavi rises after ‘solid’ Q2 and outlook keeps analysts bullish to cut 5 workforce

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Susquehanna boosted their price objective on Viavi Solutions from $18.00 to $25.00 and gave the company a “positive” rating in a report on Thursday. UBS Group lifted their price target on shares of Viavi Solutions from $12.00 to $17.00 and gave the company a “neutral” rating in a research report on Thursday, October 30th. Weiss Ratings restated a “sell (d)” rating on shares of Viavi Solutions in a report on Monday, December 29th. Needham & Company LLC raised their price objective on shares of Viavi Solutions from $24.00 to $28.00 and gave the company a “buy” rating in a research note on Thursday. Finally, B. Riley lifted their price objective on shares of Viavi Solutions from $18.00 to $22.00 and gave the company a “buy” rating in a report on Monday, January 26th. Six research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $22.13.

Insider Buying and Selling at Viavi Solutions

In related news, Director Keith Barnes sold 121,467 shares of the firm’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $18.18, for a total transaction of $2,208,270.06. Following the transaction, the director directly owned 27,213 shares of the company’s stock, valued at $494,732.34. This trade represents a 81.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Kevin Christopher Siebert sold 24,225 shares of the business’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $18.26, for a total transaction of $442,348.50. Following the transaction, the senior vice president owned 49,225 shares in the company, valued at approximately $898,848.50. This trade represents a 32.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 606,226 shares of company stock worth $10,714,820. 1.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Viavi Solutions

Hedge funds have recently modified their holdings of the company. Arrowstreet Capital Limited Partnership boosted its stake in shares of Viavi Solutions by 431.1% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 6,639,682 shares of the communications equipment provider’s stock worth $84,258,000 after buying an additional 5,389,435 shares during the last quarter. Aberdeen Group plc bought a new stake in Viavi Solutions during the third quarter worth $20,110,000. Schroder Investment Management Group boosted its position in Viavi Solutions by 16.6% in the second quarter. Schroder Investment Management Group now owns 8,213,451 shares of the communications equipment provider’s stock worth $82,709,000 after purchasing an additional 1,166,547 shares during the last quarter. Tributary Capital Management LLC boosted its position in Viavi Solutions by 92.9% in the third quarter. Tributary Capital Management LLC now owns 2,207,642 shares of the communications equipment provider’s stock worth $28,015,000 after purchasing an additional 1,063,330 shares during the last quarter. Finally, Millennium Management LLC grew its stake in Viavi Solutions by 772.9% in the 3rd quarter. Millennium Management LLC now owns 1,163,336 shares of the communications equipment provider’s stock valued at $14,763,000 after purchasing an additional 1,030,071 shares during the period. Institutional investors own 95.54% of the company’s stock.

Viavi Solutions Trading Down 1.0%

The stock has a market capitalization of $5.46 billion, a PE ratio of -135.88 and a beta of 0.94. The firm has a 50-day moving average price of $18.53 and a 200-day moving average price of $14.69. The company has a current ratio of 2.61, a quick ratio of 1.74 and a debt-to-equity ratio of 1.46.

About Viavi Solutions

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.