Viavi Solutions stock price jumps nearly 16% as Q2 beat and upbeat outlook collide with job-cut plan

New York, Jan 29, 2026, 12:48 ET — Regular session.

Shares of Viavi Solutions Inc surged almost 16% on Thursday, fueled by better-than-expected quarterly results and raised guidance for the March quarter. The stock traded around $24.39, with volume topping 9 million shares.

The reaction matters because Viavi offers a key glimpse into spending trends across data centers, telecom networks, and segments of aerospace and defense. Those budgets haven’t marched in sync, and investors have been harsh on hardware stocks that fail to pinpoint strong demand.

This comes amid earnings season, where guidance carries the day. Traders want firms showing actual orders—not just backlogs—linked to expansions in high-speed computing and defense projects.

Viavi posted adjusted EPS of 22 cents for the quarter ending Dec. 27, beating analyst forecasts of 19 cents, Investing.com reports. Revenue climbed 36.4% to $369.3 million. Looking ahead to the quarter ending March 28, the company expects revenue between $386 million and $400 million, with adjusted EPS in the range of 22 to 24 cents—both figures surpassing consensus estimates cited in the report.

Viavi reported a GAAP net loss of $48.1 million, or 21 cents per share, while non-GAAP EPS stood at 22 cents. The company revealed a restructuring plan greenlit on Jan. 23, targeting roughly 5% of its global workforce. Charges linked to the move are pegged at about $32 million, with anticipated annual cost savings near $30 million once the plan is fully rolled out.

On the earnings call, CEO Oleg Khaykin noted the business mix has shifted further toward data centers, with that segment “turned up about 45%.” Service providers are tracking below 40%, while aerospace and defense hold steady at about 15%. Khaykin added the company now has “a pretty good view” of base demand looking out three quarters. CFO Ilan Daskal highlighted “timing of certain opportunities,” following Spirent’s revenue of $43 million for the quarter. The Motley Fool

UBS was quick to act, bumping its price target on Viavi from $17 to $25 but maintaining a neutral stance. B. Riley followed suit, raising its target to $26 from $22 and sticking with a buy rating, according to MT Newswires via MarketScreener.

That said, the rally isn’t without risks. A sharper-than-expected drop in data-center spending could catch buyers off guard. Distractions like integration efforts and layoffs mid-product cycle might also sap momentum. Demand from service providers can fluctuate quarter to quarter, and wireless infrastructure testing continues to drag on the sector.

Traders are now zeroing in on execution in the March quarter ending March 28 — focusing not only on headline growth but also on whether margins can hold steady as the company integrates acquisitions and implements its workforce cuts.