Viavi Stock Skyrockets on Blowout Earnings, AI Data-Center Boom

Shares Surge: VIAV closed at about $16.92 on Oct 30, 2025, up ~21% on the day ^[1], hitting a multi-year high with volume spiking (over 10.7M shares traded ^[2]).
Strong Q1 Results: Fiscal Q1 (ended Sept. 27) revenue jumped 25.6% YoY to $299.1M and non-GAAP EPS was $0.15 (vs. $0.13 consensus) ^[3]. Gross margin and operating margin also expanded sharply.
Bullish Outlook: Management guided Q2 revenue of $360–370M (well above the $302M analysts expected) and EPS $0.18–0.20 (vs. $0.15 est.) ^[4]. CEO Khaykin cited “strong demand from the data center ecosystem and aerospace & defense” as drivers ^[5].
Strategic Acquisition: On Oct 16, VIAVI closed its acquisition of Spirent’s high‑speed Ethernet and network-security testing business for $425M ^[6], adding ~$180M revenue per year and bolstering its data-center test portfolio.
Analyst Consensus: Wall Street is generally bullish. A Fintel/Nasdaq report notes a “Buy” consensus with 12‑month targets averaging around $14–15 ^[7] ^[8]. (That was before this rally – at $12.58 in late Sept average targets were ~$14.28 ^[9].) MarketBeat shows 7 of 10 analysts as Buys ^[10].
Industry Peers: VIAVI competes in the telecom/optical test sector alongside Keysight, Anritsu, EXFO, Spirent, etc ^[11]. It is a leading player in network test gear (5G, fiber, data-center networks) and optical measurement.

Stock Performance and Technicals

Viavi stock has been on a tear. On Oct 30 it closed around $16.92, up about 21% from the prior close ^[12]. Chart analysis shows VIAV at fresh 52-week highs on the rally ^[13]. Trading volume jumped to ~10.8 million on Oct 30 (far above its ~3M average) ^[14] ^[15], signaling heavy investor interest. Technical indicators are bullish: the stock broke above its key moving averages ^[16] and volume has “been considerably higher in the last couple of days” ^[17]. ChartMill notes VIAV is “making a new 52 week high” ^[18] and outperforming most of the market. (For context, VIAV had traded in a range roughly $12–14 in recent months ^[19] before this surge.)

Earnings Beat and Growth Drivers

Viavi’s fiscal Q1 2026 earnings report (released Oct 29, post-market) was the catalyst for the rally. Revenue of $299.1M was 25.6% above a year ago, handily beating the ~$276M consensus. Non-GAAP EPS was $0.15, $0.02 above estimates ^[20]. Operating margin expanded 570 basis points YoY to 15.7% ^[21], reflecting stronger sales and cost control. Segmentation shows broad-based strength: the Network & Service Enablement unit (data-center, cloud, 5G test gear) grew ~35.5% to $216M ^[22], while Optical Security & Performance (fiber/optical test) rose ~5.5% to $83.1M.

Management also provided very aggressive guidance. For Q2 they forecast revenue $360–370M (versus the ~$302M analysts’ estimate) and EPS $0.18–0.20 (vs. $0.15 est.) ^[23]. CEO Oleg Khaykin said demand from data centers and aerospace/defense customers is “strong,” and that the recent Spirent acquisition will “further strengthen our position in the data center ecosystem” ^[24]. He expects this end-market momentum to continue. The upbeat forecast and large beat on EPS/revenue explain the stock’s spike in after-hours trading.

Viavi’s cash position remains strong (about $549M on hand at quarter-end ^[25]), and management still expects full-year net revenue to grow at high-single-digit rates, helped by new products for AI networking and optical testing. (Earlier this year at OFC 2025 the company highlighted AI/data-center test equipment like its 800G module and ONE LabPro 1.6T system ^[26], underscoring its focus on next-gen network infrastructure.)

Recent Corporate News: Spirent Acquisition

A key strategic move in Q3 was completing the Spirent Communications business acquisition. On Oct 16 VIAVI closed the purchase of Spirent’s high-speed Ethernet, network security, and channel emulation testing unit from Keysight for $425 million in cash ^[27]. This adds roughly $180M in annual revenue (to the Network & Service Enablement segment) and is expected to boost non-GAAP EPS within a year ^[28]. VIAVI financed this partly with a new $600M credit facility ^[29]. The deal expands VIAVI’s portfolio in high-speed network testing (important for AI/data center and telecom networks) and is seen as complementary to its offerings.

Aside from earnings and the Spirent deal, no other major October news (litigation or executive shake-ups) has hit VIAVI. The company remains under the leadership of CEO Oleg Khaykin (former Spirent CEO) and President Naga Chandrasekaran, who took the reins in 2023.

Industry Position and Competitors

Viavi operates in the telecom/network test equipment industry. Its products ensure telecom networks and cloud data centers run smoothly – covering fiber optical test, wireless network testing, and broader network performance/assurance. It also has a segment (Optical Security & Performance) providing specialized test gear and optical components (e.g. for 3D sensing and anti-counterfeiting).

Key competitors include Keysight Technologies (NYSE: KEYS), Anritsu (Tokyo: 6702), EXFO Inc. (TSX: EXF), Yokogawa Electric, and Spirent Communications ^[30]. (Viavi was itself spun out of JDS Uniphase and has since outgrown smaller rivals.) The telecom test equipment market is growing as service providers expand 5G, fiber and data-center infrastructure. One industry report lists VIAVI among the top telecom test players, alongside Keysight, Anritsu, EXFO, Yokogawa, Tessco, Mortek and Spirent ^[31].

In the optical components field, Viavi’s OSP business competes more broadly against firms that make filters and connectors for phones and sensors (e.g. Lumentum, II‑VI), but that’s a smaller part of total sales. Overall, analysts note that Viavi’s Network & Service Enablement (NSE) unit drives most growth, fueled by telecom/cable customers and AI/5G network builds. The optical segment is more stable but growing more slowly. This diversified exposure — plus the Spirent deal — gives VIAVI a solid niche in next‑gen network infrastructure testing.

Analyst Outlook

Analysts generally rate VIAV as a “Moderate Buy.” As of Oct 2025, consensus 12-month price targets ran in the mid-$13–$16 range ^[32] ^[33]. For example, a Nasdaq/Fintel summary (Oct 13) shows an average target of $14.28 (range $12.12–$16.80) ^[34], about +13% above then-prevailing $12.58 price. TipRanks data similarly shows 9 analysts with an average target of about $14.22 ^[35]. (MarketBeat’s consensus was ~$15.56 ^[36].) Most analysts had already rated VIAV a Buy or Hold. In mid-October Stifel reiterated a Buy on the stock ^[37].

Since the blow-out earnings, Wall Street will likely revisit these forecasts. VIAV’s post‑earnings price is already above most prior targets, implying the company must meet its new guidance to avoid giving back gains. That said, several factors support the bullish case: continued 5G/fiber rollouts, data-center expansion (especially AI servers), and integration of Spirent’s products. The new average target (~$15) still suggests modest upside from Friday’s prices ^[38], but analysts may raise targets after the beat.

In sum, Viavi Solutions has delivered stronger-than-expected growth and outlook in Q1, pushing its stock sharply higher. It is positioned as a leader in telecommunications and data-center testing equipment, with catalysts from AI networking and strategic acquisitions ^[39] ^[40]. Investors will be watching whether VIAVI can sustain this momentum and meet elevated market expectations in 2026.

Sources: Company filings and releases ^[41] ^[42]; business news and analyst reports ^[43] ^[44] ^[45]; stock data and technical summaries ^[46] ^[47].

Viavi Solutions stock analysis - would ChatGPT buy or sell today? [May 2025]

Watch this video on YouTube.

References