Viavi Solutions (VIAV) Stock Forecast & Price Target

Viavi Solutions is viewed positively because its core NSE business is gaining momentum from Data Center and Aerospace & Defense, which now account for more than two-thirds of NSE revenue and are reducing reliance on lumpier telecom demand. The company’s exposure to higher-content opportunities such as 1.6T, OCS, and especially CPO/NPO testing should lift share gains, with management indicating CPO/NPO can require roughly 4x the test content of transceivers and that early CPO revenues begin in the December 2026 quarter. Financially, the company posted $443.1 million of revenue, up 53% year over year, with gross margin of 62.3% and operating margin of 24%, while analysts see FY28 EPS around $2 to $3, underscoring meaningful earnings leverage.

Viavi Solutions is exposed to a difficult mix of cyclical and execution risks, as its revenues and gross margins depend heavily on Telecom and Data Center capital expenditures, which can weaken with economic uncertainty, customer financial stress, or slower network investment. Its majority-revenue NSE segment also faces supply-chain pressure from constrained component availability and higher transportation and logistics costs, while the 800G and 1.6T lab-test opportunity may prove smaller than expected because of competition or pricing. At the same time, its profitable OSP anti-counterfeiting business has been running near record levels due to inflation and stimulus, but demand could cool as economies move toward more cash-free behavior, leaving fundamentals vulnerable on multiple fronts.