• In late January 2026, Viavi Solutions reported second-quarter fiscal 2026 results showing US$369.3 million in sales but a US$48.1 million net loss, issued strong revenue guidance of US$386 million to US$400 million for the third quarter, filed a US$220.82 million shelf registration for 10,500,000 common shares tied to an ESOP, and outlined a cost-saving restructuring plan targeted for completion by June 2026.
• Beneath the headline growth and restructuring, Viavi is pairing rising sales with workforce reductions and facility rationalization in an effort to boost efficiency despite recent losses.
• Next, we’ll examine how the combination of robust revenue guidance and a cost-saving restructuring plan shapes Viavi’s investment narrative.

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What Is Viavi Solutions' Investment Narrative?

To own Viavi today, you have to believe that its mix of strong top-line momentum, product innovation and cost discipline can eventually translate into sustainable profitability, despite current losses and a rich sales multiple. The latest quarter underlines that trade-off: revenue is up sharply, but the company posted a US$48.1 million quarterly net loss and remains dependent on execution to close that gap. Management’s guidance for US$386 million to US$400 million in third-quarter revenue and a restructuring plan targeting about US$30 million in annual savings now sit at the center of the short term story, with the cost cuts and facility rationalization aiming to offset recent margin pressure. The new US$220.82 million shelf registration tied to the ESOP adds another layer, as potential dilution and already high valuation heighten the risk if those efficiency gains or growth drivers underperform.

However, investors also need to weigh how Viavi’s high price to sales and recent insider selling fit into that story. Viavi Solutions' shares have been on the rise but are still potentially undervalued by 10%. Find out what it's worth.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community range from US$19 to a very large US$19,112.07, underscoring just how differently people are viewing Viavi’s upside against its current losses, cost-cutting plan and rich sales multiple, so it is worth comparing several of these perspectives before forming a view on the stock’s risk and reward profile.

Explore 3 other fair value estimates on Viavi Solutions - why the stock might be a potential multi-bagger!

Build Your Own Viavi Solutions Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Viavi Solutions research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Viavi Solutions research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Viavi Solutions' overall financial health at a glance.

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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.