Time to buy VIAV

Listen up regards I'm not really sure how I learnt about VIAV but I think it has great potential to blow up. I think I got into it over researching optical stocks.

First bought a 31 call then decided to add shares before earnings. After making bank on Sandisk and many others in the ai data center play I am constantly looking for the next monster.

With AI HELP

📊 Latest earnings (Q3 FY2026 — reported April 2026)

🔥 Headline numbers

Revenue: $406.8M (+42.8% YoY) �

VIAVI Solutions Investor Relations +1

EPS (non-GAAP): ~$0.27 (beat estimates) �

AllInvestView

Operating income: $24.8M (+191% YoY) �

VIAVI Solutions Investor Relations

Gross margin: ~57.5% (improving) �

VIAVI Solutions Investor Relations

👉 Translation: Growth was extremely strong + they beat expectations

⚠️ The catch (this is important)

GAAP EPS: only $0.03 (down YoY) �

VIAVI Solutions Investor Relations +1

Net income dropped ~67% YoY �

Quiver Quantitative

Cash flow was negative this quarter �

TechStock²

👉 Translation:

They’re growing fast, but true profitability is still weak

🚀 Why the earnings were strong

1. Data center / AI boom

Huge demand from AI + cloud infrastructure

One of the biggest drivers of the 40%+ revenue jump �

Investors

1. Aerospace & defense growth

Stable, high-margin business helping results �

Stock Titan

1. Recent acquisition impact

Spirent assets boosting revenue growth (network testing) �

Investors

🔮 Forward guidance (what’s next)

Next quarter revenue: $427M–$437M

Expected EPS: $0.29–$0.31 �

Stock Titan +1

👉 That implies continued growth momentum

📉 Market reaction

Stock jumped sharply after earnings beat �

TechStock²

Also hit new highs recently �

The Motley Fool

👉 Investors focused on growth + AI exposure, not profit issues

The 67% drop in net income for VIAV looks alarming—but it’s actually not because the business got worse. It’s mostly due to accounting and one-time costs.

Here’s the real breakdown 👇

🧠 The core reason (simple version)

👉 Profits didn’t collapse — accounting profits did

GAAP net income: ↓ 67%

Non-GAAP (adjusted) income: ↑ ~99% �

VIAVI Solutions Investor Relations

That tells you the drop is mostly due to extra expenses, not weak operations

📉 What actually caused the drop

1. 💸 One-time charges (biggest reason)

VIAV had multiple non-recurring expenses:

Restructuring costs

Asset write-offs

Facility-related charges (like damage repairs)

Acquisition/integration costs �

PR Newswire

👉 These hit GAAP earnings hard, but aren’t part of normal business

1. 🏦 Debt + financing costs

Paid off debt early and refinanced

Took losses tied to debt extinguishment �

PR Newswire

👉 Basically: they cleaned up their balance sheet—but took a short-term hit

1. 📊 Higher amortization (acquisition impact)

Buying companies (like Spirent assets) adds:

amortization costs

integration expenses

👉 These reduce reported profit even if revenue grows

1. 💰 Taxes and accounting adjustments

Taxes swung significantly year-over-year

Accounting adjustments (like contingent liabilities) added costs �

PR Newswire

1. 🧾 Cash flow + payments timing

Used $26M cash in operations partly due to:

earn-out payments (from acquisitions)

working capital timing �

The Motley Fool +1

👉 Not permanent—but drags reported earnings temporarily.

VIAV looks primed to keeps popping off. It has already ran hard this year but I think with optical stocks starting to report this week VIAV will continue to climb higher.

Do your own dd and decide if you like it but I am definitely going to buy more come Monday.