Viavi Solutions received a 'Buy' rating in a detailed analyst report, which highlighted the company's robust revenue and profit growth for fiscal 2026. Revenue surged by 40% to $1.52 billion, driven by strong demand from AI data centers, optical testing, and the aerospace & defense sectors. Non-GAAP EPS more than doubled to $1.00 from $0.47 in the prior year, with operating margins expanding significantly.
Much of the growth was attributed to recent acquisitions, including Spirent and Inertial Labs, though the company also saw strong organic growth in its data center operations. The report noted that while the company's balance sheet is stronger after paying down debt, this came at the cost of shareholder dilution. Key risks remain, including a high dependency on the AI capital expenditure cycle, customer concentration, and relatively weak free cash flow.