Here Is Why Viavi Solutions (VIAV) Stock Is up So Much

Viavi Solutions (NASDAQ:VIAV) has been surging after reporting solid Q2 2025 earnings. The company sells to hyperscale data center clients. It also has optical security products for anti-counterfeiting, 3D sensing, and defense. It has also given very bullish guidance and the rally doesn’t seem to be cooling down so far. Here’s everything you need to know:

Viavi Solutions’ Q2 Earnings Report Beat Estimates

Viavi reported revenue growth of 6.4% year-over-year to $270.8 million in Q2 FY2025. Analysts expected $260 million. Moreover, non-GAAP EPS came in at $0.13. Analysts expected $0.08

Network Enablement (NSE) revenue grew 15.1% year-over-year to $179 million, though the Service Enablement (SE) and Optical Security (OSP) segments declined.

Viavi Solutions’ Guidance Was Solid

Viavi Solutions expects $276 million to $288 million in Q3 FY25 revenue. The EPS guidance of $0.10 to $0.13 also beats analyst expectations.

The Inertial Labs Acquisition is expected to boost $50 million in annual revenue from defense sales. It will cost the company $150 million upfront and $175 million in contingent payments in the next four years.

It has $512.9 million in cash and OCF came in at $44.7 million, so there’s plenty of room for more acquisitions.

Should You Buy VIAV Stock?

The boost from its strong execution also means there is less upside going forward. The consensus price target of $12.5 implies 0.5% downside from the current price of the stock.

You’re paying 27 times forward earnings for mid-single-digit sales growth and EPS growth which is expected to slow considerably starting in 2027. Another beat could take it even higher, but you should consider the premium valuation before you buy. A lot seems priced in.

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