Viavi Solutions (VIAV) just posted Q3 2026 results with revenue of US$406.8 million and basic EPS of US$0.03, while on a trailing twelve month basis revenue stands at US$1.4 billion with a basic EPS loss of US$0.24. Over recent quarters, the company has seen revenue move from US$270.8 million in Q2 2025 to US$406.8 million in Q3 2026, alongside basic EPS shifting from US$0.04 in Q2 2025 to US$0.03 in the latest quarter and swinging between profits and losses in the periods in between. This puts the spotlight firmly on how quickly margins can stabilise from here.

See our full analysis for Viavi Solutions.

With the headline numbers on the table, the next step is to see how this earnings print lines up with the most common narratives around Viavi Solutions, highlighting where the data supports the story and where it pushes back.

Revenue climbs toward US$1.4b run-rate

• On a trailing twelve month basis, Viavi has generated US$1.4b of revenue, up from US$1.0b a year earlier, with quarterly revenue moving from US$270.8 million in Q2 2025 to US$406.8 million in Q3 2026.
• Supporters of the bullish narrative point to this revenue ramp as backing long term data center and fiber upgrade themes. However, the trend also has to carry the weight of current unprofitability:
  • Bulls highlight forecasts that revenue could grow around 18.3% per year and that structural demand for high speed optical test equipment and aerospace and defense solutions can sustain that trajectory.
  • Against that, trailing twelve month net income is still a loss of US$55.1 million and EPS over the same period is a loss of US$0.24, so the stronger top line has not yet translated into consistent profits.

Supporters who want to see how the optimistic case lines up with detailed forecasts and segment drivers can go deeper into the bull argument in 🐂 Viavi Solutions Bull Case.

Profit swing: Q3 profit, TTM still loss making

• Q3 2026 delivered net income of US$6.4 million and basic EPS of roughly US$0.03, yet over the last twelve months the company still recorded a net loss of US$55.1 million and a basic EPS loss of US$0.24.
• Skeptics in the bearish camp focus on this profit gap when they argue that near term earnings risk remains high, even with growth stories in place:
  • Bears point out that the company has been unprofitable on a trailing basis and that losses have grown at about 51.3% per year over the past five years, which they see as a warning against leaning too hard on a single profitable quarter.
  • They also flag that interest coverage is weak, with earnings not comfortably covering interest expense. The path from a small Q3 profit to sustained, debt friendly earnings is therefore a key point of pressure for the cautious view.

Skeptical readers who want to see how these risks are framed around future scenarios can review the detailed cautious case in 🐻 Viavi Solutions Bear Case.

High P/S multiple vs peers and DCF fair value

• At the current share price of US$52.40 and a trailing twelve month revenue base of US$1.4b, Viavi is trading on a P/S of 8.9x, compared with 2.6x for the broader US communications industry and slightly below the peer group at 9.2x, while the DCF fair value provided is US$39.20.
• Analysts who take a more balanced, consensus style view see this mix of growth and valuation as a trade off rather than a clear bargain, and they compare it with their standardised target price:
  • The consensus narrative referenced in the data expects revenue and earnings to improve meaningfully over the next few years, which helps explain why the stock trades at a higher P/S multiple than the industry average.
  • At the same time, the DCF fair value of US$39.20 is below the current market price and the standardised analyst target of US$64.43 sits above it, so investors are effectively weighing a rich current multiple, stronger growth forecasts and a mixed valuation picture before deciding how comfortable they are with the risk profile.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Viavi Solutions on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With mixed views in the data, this is a moment to look closely at the numbers yourself and decide how the balance of risks and rewards sits for you. You can start with the 2 key rewards and 3 important warning signs.

Explore Alternatives

Viavi Solutions is still loss making on a trailing basis, with weak interest coverage and a relatively high P/S multiple that leaves limited room for error.

If you want earnings that look more secure and balance sheets that can better support growth, start comparing against the 74 resilient stocks with low risk scores today.

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.