We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
VIAV trades at 19.07X forward earnings, but integration risks and weak wireless remain.
Viavi Solutions Inc. (VIAV - Free Report) shares have fallen 11.6% in the past month even as fiscal first-quarter 2027 results showed accelerating revenues and earnings. The pullback follows a much larger 92.2% gain over the past year.
That contrast makes the investment question less about whether business conditions improved and more about whether recent growth, estimate revisions and valuation can support the stock after a volatile run.
Why VIAV’s Past-Month Drop Matters
VIAV’s four-week decline of 11.6% marks a reversal in near-term price momentum. The stock is also down 15.6% over the past 12 weeks, despite remaining sharply higher over the past year.
The operating backdrop has strengthened. Fiscal first-quarter revenues rose 56.9% year over year to $469.3 million, while non-GAAP earnings climbed to 47 cents per share from 15 cents. The current-fiscal-year EPS estimate increased 30% over the past four weeks.
VIAV’s Growth Drivers Remain Powerful
Network and Service Enablement revenues increased 74.1% year over year to $376.1 million. Data-center demand, aerospace and defense customers, and acquired Spirent product lines drove the increase. Spirent products contributed $52.7 million during the quarter.
Viavi is also expanding into 1.6T optics, co-packaged optics and semiconductor packaging and test. Management expects the semiconductor-test opportunity alone to exceed $100 million in annual revenues within a few years. Keysight Technologies, Inc. (KEYS - Free Report) also serves AI infrastructure, communications, aerospace and defense, and semiconductor customers through design, emulation and test solutions, underscoring the breadth of demand across advanced testing markets.
Viavi’s Risks Could Keep Pressure Elevated
Wireless remains the weakest part of Viavi’s service-provider business as spending stays subdued. Optical Security and Performance Products faces seasonal weakness in 3D sensing and anti-counterfeiting, while favorable product mix can make margins uneven from quarter to quarter.
Spirent integration adds execution risk. The diluted share count rose to 266.2 million from 222.9 million a year earlier, while debt had a combined carrying value of $642.5 million at quarter-end. Ciena Corporation (CIEN - Free Report) , another company exposed to AI-related network investment, reported 37% year-over-year revenue growth in its latest quarter, illustrating that industry demand is strong but also raising the bar for execution across the networking ecosystem.
VIAV’s Valuation Leaves Room for Debate
VIAV trades at 19.07X forward 12-month earnings, below the 24.42X Zacks sub-industry multiple and its five-year median of 28.08X. That discount can look attractive after the recent share-price decline.
Image Source: Zacks Investment Research
The comparison is less clear against the broader market. VIAV trades above the Zacks sector multiple of 17.5X and the S&P 500 multiple of 18.8X. Its Value Score of D reinforces that the forward P/E discount alone does not establish a broad value case.
VIAV’s Momentum Signals Still Favor Buyers
The sell-off has improved the entry point numerically, but the case still depends on continued data-center and aerospace and defense demand, successful Spirent integration and sustained margin expansion. The stock’s recent weakness therefore looks more like an opportunity for investors comfortable with execution and volatility than an uncomplicated bargain.
VIAV currently sports a Zacks Rank #1 (Strong Buy), with a Growth Score of A, Momentum Score of A and VGM Score of B. Those readings support a favorable near-term profile, while the Value Score of D signals less support from valuation. The combination favors a constructive stance, but continued operating delivery remains important. You can see the complete list of today’s Zacks #1 Rank stocks here.
View the Zacks #1 Rank List
Image: Bigstock
VIAV Falls 11.6% in the Past Month: Is the Sell-Off an Opportunity?
Key Takeaways
Viavi Solutions Inc. (VIAV - Free Report) shares have fallen 11.6% in the past month even as fiscal first-quarter 2027 results showed accelerating revenues and earnings. The pullback follows a much larger 92.2% gain over the past year.
That contrast makes the investment question less about whether business conditions improved and more about whether recent growth, estimate revisions and valuation can support the stock after a volatile run.
Why VIAV’s Past-Month Drop Matters
VIAV’s four-week decline of 11.6% marks a reversal in near-term price momentum. The stock is also down 15.6% over the past 12 weeks, despite remaining sharply higher over the past year.
The operating backdrop has strengthened. Fiscal first-quarter revenues rose 56.9% year over year to $469.3 million, while non-GAAP earnings climbed to 47 cents per share from 15 cents. The current-fiscal-year EPS estimate increased 30% over the past four weeks.
VIAV’s Growth Drivers Remain Powerful
Network and Service Enablement revenues increased 74.1% year over year to $376.1 million. Data-center demand, aerospace and defense customers, and acquired Spirent product lines drove the increase. Spirent products contributed $52.7 million during the quarter.
Viavi is also expanding into 1.6T optics, co-packaged optics and semiconductor packaging and test. Management expects the semiconductor-test opportunity alone to exceed $100 million in annual revenues within a few years. Keysight Technologies, Inc. (KEYS - Free Report) also serves AI infrastructure, communications, aerospace and defense, and semiconductor customers through design, emulation and test solutions, underscoring the breadth of demand across advanced testing markets.
Viavi’s Risks Could Keep Pressure Elevated
Wireless remains the weakest part of Viavi’s service-provider business as spending stays subdued. Optical Security and Performance Products faces seasonal weakness in 3D sensing and anti-counterfeiting, while favorable product mix can make margins uneven from quarter to quarter.
Spirent integration adds execution risk. The diluted share count rose to 266.2 million from 222.9 million a year earlier, while debt had a combined carrying value of $642.5 million at quarter-end. Ciena Corporation (CIEN - Free Report) , another company exposed to AI-related network investment, reported 37% year-over-year revenue growth in its latest quarter, illustrating that industry demand is strong but also raising the bar for execution across the networking ecosystem.
VIAV’s Valuation Leaves Room for Debate
VIAV trades at 19.07X forward 12-month earnings, below the 24.42X Zacks sub-industry multiple and its five-year median of 28.08X. That discount can look attractive after the recent share-price decline.
Image Source: Zacks Investment Research
The comparison is less clear against the broader market. VIAV trades above the Zacks sector multiple of 17.5X and the S&P 500 multiple of 18.8X. Its Value Score of D reinforces that the forward P/E discount alone does not establish a broad value case.
VIAV’s Momentum Signals Still Favor Buyers
The sell-off has improved the entry point numerically, but the case still depends on continued data-center and aerospace and defense demand, successful Spirent integration and sustained margin expansion. The stock’s recent weakness therefore looks more like an opportunity for investors comfortable with execution and volatility than an uncomplicated bargain.
VIAV currently sports a Zacks Rank #1 (Strong Buy), with a Growth Score of A, Momentum Score of A and VGM Score of B. Those readings support a favorable near-term profile, while the Value Score of D signals less support from valuation. The combination favors a constructive stance, but continued operating delivery remains important. You can see the complete list of today’s Zacks #1 Rank stocks here.