Why Viavi Solutions Stock Triumphed on Thursday
Key Points
The company not only topped estimates for its third quarter, but it also trounced them for guidance.
It's doing well selling into not one, but two thriving industries.
- 10 stocks we like better than Viavi Solutions ›
Viavi Solutions (NASDAQ: VIAV) was a quick solution to ailing stock portfolios on Thursday. The tech equipment specialist published its latest quarterly earnings report, which featured not only beats on trailing results but on current-quarter guidance. That led to something of a bull run on the stock, which closed the day more than 15% higher in price.
A pair of convincing beats
After market close Wednesday, Viavi reported net revenue of just under $407 million for its third quarter of fiscal 2026. That was nearly 43% higher year over year and easily beat the consensus analyst estimate of nearly $394 million.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
The company's income from operations, a metric not under generally accepted accounting principles (GAAP), rose by a steep 79% to $85.5 million, or $0.27 per share. This also represented a beat, as the pundits tracking Viavi stock had been modeling only $0.23.
Viavi has numerous customers in the data center and aerospace industries, both of which are experiencing prosperous times. The company commented that it expects the two to continue growing in the foreseeable future.
Strong guidance adds to bullishness
Viavi also notched a double beat on its guidance for the current (fourth) quarter. Revenue is expected to come in at $427 million to $437 million, while non-GAAP (adjusted) net income is predicted at $0.29 to $0.31. Analysts collectively estimate the top line will be just over $402 million, and adjusted net income will land at $0.24.
This is a confident business selling into markets that are set to be future-proof for quite some time. I'm especially impressed that Viavi is effectively straddling two such industries, as each alone would provide plenty of reason to be bullish. This stock should be seriously considered for any portfolio, in my humble opinion.
Should you buy stock in Viavi Solutions right now?
Before you buy stock in Viavi Solutions, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Viavi Solutions wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,797!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,282,815!*
Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 30, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Viavi Solutions. The Motley Fool has a disclosure policy.
Recommended Articles
