Viavi Solutions Inc

Viavi Solutions reported fourth-quarter fiscal 2026 revenue of $443.1 million, up 52.5% year over year, with non-GAAP EPS of 34 cents, driven by AI infrastructure investment and contributions from acquired Spirent product lines. Network and Service Enablement revenue rose 69.2% to $353.9 million, while non-GAAP operating margin expanded to 24.0% from 14.4% a year earlier. The company guided first-quarter fiscal 2027 revenue of $450-$460 million and non-GAAP EPS of 40-42 cents, and launched new AI testing platforms including the Ultra Ethernet Transport validation platform and CyberFlood CF1000. Viavi carries a Zacks Rank #3 (Hold) with weak Style Scores, while peers Knowles Corporation and ADTRAN Holdings hold Outperform and Underperform recommendations respectively.

VIAVI Solutions has launched Vertex 6.0, the industry's first channel emulator designed for next-generation 6G and Wi-Fi 7/8 testing. The platform offers 400 MHz instantaneous bandwidth and supports carrier frequencies up to 23.6 GHz, natively meeting newly defined 6G waveform requirements and surpassing Wi-Fi 7/8 bandwidth needs. Vertex 6.0 is the first upgrade following VIAVI's acquisition of Spirent Communications' high-speed Ethernet, network security and channel emulation testing business. Each 6U Vertex chassis supports 36 RF ports, 256 digital links and up to 1.6 GHz of bandwidth, with capabilities for FR3 bands, multiuser MIMO, and both TDD and FDD modes. For Wi-Fi 7/8, it includes native support for 320 MHz and 4096 QAM in configurations from 2x2 to 8x8, along with modes for land-to-land, land-to-air, air-to-air transmissions, and non-terrestrial networks.

Viavi Solutions reported fiscal fourth-quarter non-GAAP earnings of 34 cents per share on revenue of $443.1 million, beating the Zacks Consensus Estimate of 30 cents and $433 million, respectively. Management guided fiscal first-quarter revenue to $450 million to $460 million and non-GAAP EPS to $0.40 to $0.42, with an operating margin of 27.1% plus or minus 40 basis points. President and CEO Oleg Khaykin said the data-center ecosystem now represents about 50% of Network and Service Enablement revenue, with aerospace and defense at about 17%, and that the core data-center business excluding Spirent more than doubled year over year. Khaykin also noted that 1.6T optical technology is ramping rapidly and may reach parity with 800G in fiscal 2027, while co-packaged optics and optical-circuit switching are generating purchase orders and early revenue. The Spirent integration was completed by the end of the June quarter, and the acquired business is expected to grow at least 10% sequentially in the September quarter.

Viavi Solutions introduced the µPNT GDO-1000, a compact GNSS-disciplined oscillator designed for size- and power-constrained platforms. Measuring the size of a postage stamp and weighing under 4 grams, this M.2 B-key module provides a space-efficient alternative for defense, airborne systems, and data center equipment. The device features dual-frequency L1/L5 reception and uses MEMS oscillator technology to achieve microsecond-class 24-hour holdover. By incorporating proprietary AI and ML algorithms, it maintains thermal stability and compensates for environmental conditions, offering performance levels previously associated with more expensive atomic-class clocks. Designed for easy integration, the GDO-1000 draws approximately half a watt and functions without requiring custom mechanical designs.

Inspection instruments stocks reported a strong first quarter, with aggregate revenues missing analyst estimates by 0.5% but next-quarter revenue guidance coming in 2.5% above expectations. Itron posted revenues of $587 million, down 3.3% year-on-year but beating estimates by 2.6%, though it delivered the weakest guidance update among the five companies tracked. Viavi Solutions achieved the fastest revenue growth at 42.8% to $406.8 million, while Badger Meter saw revenues fall 9% to $202.3 million, missing estimates by 12.5%. Teledyne and Keysight also beat revenue expectations, with Teledyne reporting $1.56 billion and Keysight $1.72 billion.

VIAVI Solutions launched a TETRA MS base station simulator option for its field-portable CX300 communications service monitor. This software-based upgrade allows technicians to perform comprehensive testing of mission-critical TETRA radios, including transmitter diagnostics, call processing, and BER/MER loopback, without needing to manually set radios into T1 test mode. By simulating real-world network registration, the CX300 enables more accurate validation of how devices perform in the field, simplifying the testing process for emergency services and government agencies that rely on TETRA for resilient, encrypted voice and data communications. The upgrade requires no additional hardware and is compatible with the existing CX300 platform, which remains a versatile tool for LMR/PMR protocol testing, integrating various analytical features like spectrum analysis and automated alignment into a single device. This release reinforces VIAVI Solutions' long-standing position in the radio test market, while offering a streamlined migration path for users transitioning from the legacy 3920B platform.

Viavi Solutions shares surged 12.23 percent on Monday to close at $52.94, boosted by the company's official inclusion in the S&P MidCap 400 index. The S&P Dow Jones Indices added Viavi and four other companies—Sanmina, Semtech, Coeur Mining, and Roku—to the benchmark, effective June 22, while dropping Flex, BellRing Brands, Coty, Concentrix, and Blackbaud. The rally was also supported by Viavi's announcement that its Xgig platform for PCI Express 6.0 specification testing achieved Gold Suite acceptance from PCI-SIG, enabling its use for compliance testing worldwide.

Shares of Viavi Solutions jumped 11.6% in afternoon trading after the company was set to be added to the S&P MidCap 400 index, a move that boosts demand from institutional investors. The inclusion means funds tracking the index are required to buy the stock, and the rally was also supported by analysts identifying Viavi as a leading artificial intelligence infrastructure company for the second half of 2026. The stock is up 191% year to date and trading near its 52-week high of $55.33.

Zacks Investment Research identified three AI-driven stocks for the second half of 2026 that have already posted triple-digit returns year to date and still carry double-digit upside potential. Sterling Infrastructure, a Zacks Rank #1 Strong Buy, is a major provider of high-density AI-powered data centers and has expected revenue and earnings growth of 59.2% and 77.4% for the current year, with a short-term average price target implying a 9.7% increase from its last closing price of $861.88. Semtech, a Zacks Rank #2 Buy, is benefiting from AI-led data center networking demand and has expected revenue and earnings growth of 29.1% and 55.6% for the current year ending January 2027, with a short-term average price target representing a 29.5% increase from its last closing price of $158.23. Viavi Solutions, also a Zacks Rank #2 Buy, is seeing growing demand across data center, AI infrastructure, aerospace and defense markets, with expected revenue and earnings growth of 20.1% and 30.9% for the next year ending June 2027, and a short-term average price target indicating a 37% increase from its last closing price of $47.17.

The five inspection instruments stocks tracked by StockStory reported a strong first quarter, with aggregate revenues missing analyst consensus by 0.5% while next-quarter revenue guidance came in 2.5% above expectations. Keysight Technologies led with revenue of $1.72 billion, up 31.5% year-on-year and beating estimates by 0.8%, while also exceeding adjusted operating income and EPS guidance forecasts. Viavi Solutions posted the best quarter among peers, with revenue of $406.8 million up 42.8% year-on-year and a 3.5% beat, along with higher EPS guidance and EBITDA. Badger Meter was the weakest, with revenue of $202.3 million down 9% year-on-year and a 12.5% miss, missing on adjusted operating income and EPS. Teledyne reported revenue of $1.56 billion up 7.6% year-on-year and a 3% beat, while Itron posted revenue of $587 million down 3.3% year-on-year and a 2.6% beat, though Itron had the weakest guidance update among the group. On average, share prices of the tracked stocks are down 2.4% since their latest earnings results.

VIAVI Solutions announced that its Xgig platform for PCIe 6.0 specification testing has achieved Gold Suite acceptance from PCI-SIG. This authorization allows the platform to be used for PCIe 6.0 link and transaction protocol compliance testing at PCI-SIG compliance workshops worldwide. Products that pass such testing are added to the PCI-SIG Integrators List, providing a verified reference of interoperable components. The Xgig platform integrates protocol analysis, traffic generation, and error injection in a unified system designed for advanced debug, validation, and compliance workflows. VIAVI and PCI-SIG leaders emphasized that robust compliance testing is critical to accelerating interoperability and adoption of PCIe 6.0 technology across AI and high-performance computing ecosystems.