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VIAVI Solutions Inc. (VIAV) is a global leader in network test, monitoring, and assurance solutions. The company also produces highly specialized optical security and performance products used in anti-counterfeiting and 3D sensing.
Investment Thesis
VIAVI is a 'toll-taker' on the global buildout of high-speed data infrastructure. Every major wireless carrier and data center operator requires VIAVI's specialized tools to test and maintain their complex 4G, 5G, and fiber networks. This creates a highly resilient, recurring demand for their equipment and software. Furthermore, their 'Optical Security' division holds a near-monopoly on the specialized pigments used in global currency anti-counterfeiting, providing a high-margin, stable cash flow floor. As AI and cloud computing drive an unprecedented need for network performance, VIAVI's testing solutions will remain in high demand.
Key Growth Drivers
Network Complexity Tailwinds
As 5G and fiber networks become more complex, the need for VIAVI's sophisticated testing and monitoring tools grows exponentially, driving higher-margin software sales.
Monopoly Pigment Position
VIAVI provides critical anti-counterfeiting technology for more than 100 global currencies, creating a unique, high-margin revenue stream that is completely decoupled from the tech cycle.
Shift to Recurring Software
The company is successfully transitioning toward a subscription-based software model, which will improve earnings visibility and structurally elevate valuation multiples.
Valuation & Financial Modeling
VIAV trades at an attractive multiple relative to its historical average and its market-leading position. We believe the market is underestimating the leverage the company has to the next phase of the 5G and AI data center buildout.
Risk Factors & Bear Case
A sudden slowdown in telecommunications CapEx (as seen in late 2024/2025) can lead to lumpy near-term earnings. Furthermore, the 3D sensing market (used in smartphones) is highly cyclical and dependent on a few major consumer electronics OEMs.
Conclusion
VIAVI Solutions is a critical technology enabler trading at a reasonable price. It offers a unique mix of high-growth tech exposure and defensive specialty chemicals. Rated 'Buy'.
Upcoming Catalysts
No upcoming catalysts identified.
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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-4.9%
Sector: -1.4%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, VIAVI SOLUTIONS INC. (VIAV) receives a "Hold" rating with a composite score of 50.3/100, ranked #432 out of 4446 stocks. Key factor scores: Quality 50/100, Value 37/100, Momentum 77/100. This is quantitative analysis only — not investment advice.
VIAVI SOLUTIONS INC. (VIAV) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does VIAVI SOLUTIONS INC. Do?
Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, government, and avionics customers worldwide. The company operates through three segments: Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP) segments. The NE segment offers testing solutions that access the network to perform build-out and maintenance tasks. This segment provides solutions that include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks; and instrumentation for communication and safety. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services. The SE segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data. Its solutions include instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. The OSP segment offers optical products for anti-counterfeiting, consumer and industrial, government, automotive, and industrial markets. The company was formerly known as JDS Uniphase Corporation and changed its name to Viavi Solutions Inc. in August 2015. Viavi Solutions Inc. was founded in 1923 and is headquartered in Scottsdale, Arizona. VIAVI SOLUTIONS INC. (VIAV) is classified as a mid-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Oleg Khaykin and employs approximately 3,600 people, headquartered in Milpitas, Arizona. With a market capitalization of $8.2B, VIAV is one of the notable companies in the Technology sector.
VIAVI SOLUTIONS INC. (VIAV) Stock Rating — Hold (April 2026)
As of April 2026, VIAVI SOLUTIONS INC. receives a Hold rating with a composite score of 50.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.VIAV ranks #432 out of 4,446 stocks in our coverage universe. Within the Technology sector, VIAVI SOLUTIONS INC. ranks #25 of 584 stocks, placing it in the top 10% of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
VIAV Stock Price and 52-Week Range
VIAVI SOLUTIONS INC. (VIAV) currently trades at $42.38. The stock lost $0.37 (0.9%) in the most recent trading session. The 52-week high for VIAV is $34.38, which means the stock is currently trading 23.2% from its annual peak. The 52-week low is $8.10, putting the stock 423.1% above its annual trough. Recent trading volume was 1.9M shares, reflecting moderate market activity.
Is VIAV Overvalued or Undervalued? — Valuation Analysis
VIAVI SOLUTIONS INC. (VIAV) carries a value factor score of 37/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-book ratio stands at 10.69x, versus the sector average of 3.16x. The price-to-sales ratio is 7.29x, compared to 1.06x for the average Technology stock. On an enterprise value basis, VIAV trades at 204.01x EV/EBITDA, versus 12.79x for the sector.
At current multiples, VIAVI SOLUTIONS INC. trades at a premium to most Technology peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
VIAVI SOLUTIONS INC. Profitability — ROE, Margins, and Quality Score
VIAVI SOLUTIONS INC. (VIAV) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is -4.9%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -1.5% versus the sector average of -1.0%.
On a margin basis, VIAVI SOLUTIONS INC. reports gross margins of 57.3%, compared to 50.9% for the sector. The operating margin is 4.2% (sector: -0.5%). Net profit margin stands at -2.5%, versus -1.5% for the average Technology stock. Revenue growth is running at 55.0% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
VIAV Debt, Balance Sheet, and Financial Health
VIAVI SOLUTIONS INC. has a debt-to-equity ratio of 146.0%, compared to the Technology sector average of 43.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.61x, indicating strong short-term liquidity. Total debt on the balance sheet is $1.22B. Cash and equivalents stand at $766M.
VIAV has a beta of 1.23, meaning it is more volatile than the broader market — a $10,000 investment in VIAV would be expected to move 23.1% more than the S&P 500 on any given day. The stability factor score for VIAVI SOLUTIONS INC. is 51/100, reflecting average volatility within the normal range for its sector.
VIAVI SOLUTIONS INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, VIAVI SOLUTIONS INC. reported revenue of $1.22B and earnings per share (EPS) of $-0.21. Net income for the quarter was $-41M. Gross margin was 57.3%. Operating income came in at $50M.
In Q2 2026, VIAVI SOLUTIONS INC. reported revenue of $369M and earnings per share (EPS) of $-0.21. Net income for the quarter was $-48M. Gross margin was 57.0%. Revenue grew 36.4% year-over-year compared to Q2 2025. Operating income came in at $11M.
In Q1 2026, VIAVI SOLUTIONS INC. reported revenue of $299M and earnings per share (EPS) of $-0.10. Net income for the quarter was $-21M. Gross margin was 56.5%. Revenue grew 25.6% year-over-year compared to Q1 2025. Operating income came in at $8M.
In FY 2025, VIAVI SOLUTIONS INC. reported revenue of $1.08B and earnings per share (EPS) of $0.16. Net income for the quarter was $35M. Gross margin was 57.3%. Revenue grew 8.4% year-over-year compared to FY 2024. Operating income came in at $58M.
Over the past 8 quarters, VIAVI SOLUTIONS INC. has demonstrated a growth trajectory, with revenue expanding from $1.00B to $1.22B. Investors analyzing VIAV stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
VIAV Dividend Yield and Income Analysis
VIAVI SOLUTIONS INC. (VIAV) does not currently pay a dividend. This is common among smaller companies in the Electronic Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
VIAV Momentum and Technical Analysis Profile
VIAVI SOLUTIONS INC. (VIAV) has a momentum factor score of 77/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 22/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 31/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
VIAV vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, VIAVI SOLUTIONS INC. (VIAV) ranks #25 out of 584 stocks based on the Blank Capital composite score. This places VIAV in the top decile of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing VIAV against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full VIAV vs S&P 500 (SPY) comparison to assess how VIAVI SOLUTIONS INC. stacks up against the broader market across all factor dimensions.
VIAV Next Earnings Date
No upcoming earnings date has been announced for VIAVI SOLUTIONS INC. (VIAV) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy VIAV? — Investment Thesis Summary
VIAVI SOLUTIONS INC. presents a balanced picture with arguments on both sides. The value score of 37/100 indicates premium valuation. Price momentum is positive at 77/100, suggesting the trend favors buyers.
In summary, VIAVI SOLUTIONS INC. (VIAV) earns a Hold rating with a composite score of 50.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on VIAV stock.
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Execution Benchmarks audit
Revenue Growth
YOY expansion rate
55.0%
Sector: 14.2%
+287% VS SCTR
Gross Margin
Core pricing power
57.3%
Sector: 50.9%
+13% VS SCTR
Operating Margin
Operating efficiency
4.2%
Sector: -0.5%
-962% VS SCTR
Net Margin
Bottom-line conversion
-2.5%
Sector: -1.5%
+65% VS SCTR
Return on Equity
Equity capital efficiency
-4.9%
Sector: -1.4%
+240% VS SCTR
Return on Assets
Asset base utilization
-1.5%
Sector: -1.0%
+53% VS SCTR
Debt/Equity
Financial leverage load
146.0%
Sector: 43.0%
-240% VS SCTR
Dividend Yield
Direct cash return
0.0%
Sector: 0.0%
-NaN% VS SCTR
+238%
Price / Sales
7.3x
+588%
VIAVI SOLUTIONS INC. exhibits a 435% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-1.5%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
57.3%
Sector: 50.9%
Operating Margin
Core business profitability
4.2%
Sector: -0.5%
Net Margin
Bottom-line profitability
-2.5%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.