Viavi Solutions Shares Surge on Blowout Earnings, Upbeat AI and Defense Outlook
Shares of Viavi Solutions Inc. (NASDAQ: VIAV) surged more than 17% in Thursday trading, propelled by a powerful fiscal second-quarter earnings report that handily exceeded Wall Street forecasts and signaled strong momentum in key growth sectors.
The company, a provider of test, measurement, and optical security solutions, reported revenue of $369 million for the quarter, a 36% year-over-year jump. More impressively, its non-GAAP net income skyrocketed 75% to $51.5 million, or $0.22 per share. Both figures topped consensus analyst estimates, which had pegged revenue at around $365 million and earnings per share at $0.19.
Analysts point to Viavi's strategic positioning in two high-growth arenas: data center infrastructure and the defense/aerospace industry. The relentless build-out of data centers to support artificial intelligence workloads is creating sustained demand for Viavi's testing and monitoring equipment. Simultaneously, its optical security and performance solutions are gaining traction in government and aerospace contracts.
"This wasn't just a beat; it was a statement," said Michael Chen, a technology sector analyst at Horizon Capital. "Viavi is demonstrating it's not just a niche player but a critical enabler in two of the most capital-intensive and strategically important markets today. The guidance confirms this is a trend, not a one-off."
That guidance for the current quarter was notably bullish. Management projected revenue between $386 million and $400 million, with adjusted earnings per share of $0.22 to $0.24. These forecasts dwarf both the prior year's comparable results and current analyst expectations, which averaged $353 million in revenue and $0.15 per share.
The strong outlook suggests the company's growth trajectory is accelerating. Compared to the fiscal second quarter of 2025, where revenue was just under $271 million and adjusted EPS was $0.13, the projected figures represent a significant step-change in performance.
Investor Reactions: Optimism Meets Caution
Sarah Jenkins, Portfolio Manager at Clearwater Investments: "This report validates the investment thesis around infrastructure enablers for AI and secure networks. Viavi's results show tangible, bottom-line impact from these megatrends. The guidance uplift is what truly separates this from a simple earnings beat—it implies management sees visibility and strength continuing."
David Park, Independent Retail Investor: "Finally! I've held VIAV through some quiet periods, believing in their tech in the background of everything from 5G to cloud. Today's move feels like a long-awaited recognition. The defense angle is also a huge, underrated moat."
Lisa Monroe, Editor at 'The Skeptical Investor' Newsletter: "Let's not get carried away. A 17% pop on one quarter? This stock has been volatile for years. The 'AI tailwind' narrative is being slapped on every company with a tech manual. I'd want to see if this growth rate is sustainable beyond the next quarter or if this is just a inventory restocking cycle for data centers. The valuation just got a lot richer."
Robert Garcia, Chief Technology Officer at a Mid-Atlantic Data Center Firm: "From an operational standpoint, this makes sense. The complexity and scale of modern AI clusters demand unprecedented levels of network performance validation and fiber monitoring. Viavi's tools are becoming table stakes for any serious deployment. Their growth mirrors the industry's pain points."
Disclosure: The Motley Fool has positions in and recommends Viavi Solutions.