Why Viavi Solutions stock is up more than 17% today
The company released its fiscal second quarter results and Mr. Market was impressed.
technical equipment specialist Viavi Solution (via +17.45%) It may not be a familiar name to many, but the stock was a big hit with investors on Thursday. The company reported encouraging second-quarter fiscal 2026 results after the market closed the previous day, and market participants were rewarded by pushing the stock up more than 17% during Thursday’s trading session.
Time for a double beat
Vivavi’s growth rate for the quarter was impressive. Sales increased 36% year over year to $369 million. Even better, non-generally accepted accounting principles (GAAP) net income increased 75% to $51.5 million, or $0.22 per share.
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Moreover, both indicators were higher than analysts’ consensus estimates. As a group, these experts modeled revenue of just over $365 million and a non-GAAP (adjusted) earnings per share figure of $0.19.
Viavi is performing particularly well in two target market segments: robust data centers and defense/aerospace. The former is particularly active these days, given the need to build resource-poor artificial intelligence (AI) capabilities.
today’s change
(17.45%)$3.67
current price
$24.70
Key data points
market capitalization
$4.7 billion
work range
$22.80 – $24.95
52 week range
$8.10 – $24.95
volume
16M
average volume
4.2 million
gross profit
56.65%
Rising star?
Viavi also provided guidance for the current (third) quarter. Management expects revenue to be between $386 million and $400 million and adjusted net income to be between $0.22 and $0.24 per share. Both figures are well above “actuals” for the second quarter of fiscal 2025. This was just shy of the $271 million peak and adjusted profitability of $0.13 per share.
More importantly, it defied the average analyst’s expectations with sales of $353 million and adjusted earnings of just $0.15 per share.
More and more, Viavi feels like one of those “right time, right place” companies. This is doubly so because the two previously mentioned sectors are opportunistically taking advantage of the long-term growth opportunities presented by their customers. This generally unknown stock will certainly be a company to watch as the year unfolds.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has a position at and recommends Viavi Solutions. The Motley Fool has a disclosure policy.
