Viavi Solutions (VIAV): Assessing Valuation After Latest Q2 2026 Earnings Guidance Update

Viavi Solutions (VIAV) just released its earnings guidance for the second quarter of fiscal 2026, projecting net revenue in the $360 million to $370 million range. This kind of update often receives investors’ attention, as it provides fresh insight into how the company views its near-term prospects.

See our latest analysis for Viavi Solutions.

Viavi’s latest earnings outlook comes after an eventful quarter, including its completed acquisition of Spirent Communications’ test business and related financing activities, which reinforced the company’s commitment to growth. The stock’s 11.4% share price return over the past month and robust 38% year-to-date gain signal building momentum, culminating in a total shareholder return of nearly 48% over the last year. This figure stands well above its longer-term trend. Investors are clearly responding to both improved fundamentals and management’s confidence in upcoming results.

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With shares hitting fresh highs and optimism running strong, investors are now asking whether Viavi Solutions is still trading below its true worth or if the latest surge already reflects all that future growth potential.

Most Popular Narrative: 4.1% Undervalued

The most widely followed narrative estimates Viavi Solutions' fair value at $14.57 per share, a slight premium to its last close of $13.98. This tight gap is fueling debate about whether the momentum is justified or already fully reflected in the price.

Viavi is experiencing robust and sustained demand across the data center ecosystem, with customers updating optical connectivity to 400G, 800G, and now 1.6T. This enables multi-year upgrade cycles and expands its total addressable market, which should drive structural revenue growth through 2026 and beyond.

Read the complete narrative.

Craving insight into the financial engine behind this bullish view? This narrative leans heavily on a set of jaw-dropping profit and revenue forecasts that put Viavi in a rare class among peers. Curious which assumptions get analysts so close to the current price, yet still see hidden upside? Prepare to unpack the numbers that shape the fair value consensus.

Result: Fair Value of $14.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, if persistent weakness in wireless test demand or integration hurdles from recent acquisitions occur, enthusiasm for the growth narrative could quickly fade.

Find out about the key risks to this Viavi Solutions narrative.

Another Perspective: Market Ratios Signal Caution

While fair value estimates suggest Viavi Solutions is underappreciated, looking at its price-to-earnings ratio tells a different story. At 89.7x, Viavi trades well above both its sector peers (28.8x) and the industry average (30.9x). It also exceeds its own fair ratio of 52.7x. This sizable premium highlights a possible valuation risk investors cannot ignore. Could the market be anticipating perfection?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Viavi Solutions Narrative

Prefer to see the story from your own perspective? All it takes is a few clicks to design your own Viavi Solutions narrative and test your assumptions. Do it your way

A great starting point for your Viavi Solutions research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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