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Investing.com - Stifel raised its price target on Viavi Solutions (NASDAQ:VIAV) to $18.00 from $15.00 on Thursday, while maintaining a Buy rating following the company’s strong fiscal first-quarter 2026 results.
Viavi reported revenue of $299 million for the quarter, representing 25.6% year-over-year growth and exceeding both management guidance and consensus estimates of $294 million. The Network and Service Enablement (NSE) segment generated $216 million in revenue, up 35.5% year-over-year, primarily driven by data center ecosystem demand.
The company’s Optical Security and Performance (OSP) segment contributed $83.1 million in revenue, increasing 5.5% year-over-year, with growth mainly coming from anti-counterfeiting products. Operating margin reached 15.7%, at the high end of guidance, resulting in adjusted earnings per share of $0.15, surpassing both guidance and consensus estimates of $0.13.
For the December quarter, Viavi provided revenue guidance of $365 million at the midpoint, which includes approximately $50 million from the recently acquired Spirent Ethernet business. The implied core Viavi revenue of roughly $315 million suggests 5% sequential and 16% year-over-year growth.
Stifel noted that Viavi’s continued diversification into higher-value markets, coupled with leverage, is expected to drive multiple expansion over the longer term, supporting the firm’s decision to maintain its Buy rating while raising the price target.
In other recent news, Viavi Solutions reported fiscal first-quarter revenue of $299 million, surpassing consensus estimates of $294 million. The company’s earnings per share reached $0.15, exceeding the expected $0.13. This performance was partially fueled by the acquisition of Inertial Labs and marked a 25.6% year-over-year revenue increase. Additionally, Viavi Solutions issued strong guidance for the upcoming period. The company’s non-GAAP operating margin improved significantly to 15.7%, up 570 basis points from the previous year. In a related development, B. Riley upgraded Viavi Solutions from Neutral to Buy, raising the price target to $18.00 from $12.00. The upgrade was attributed to growth in artificial intelligence and data centers. These developments reflect Viavi Solutions’ positive trajectory in its financial and operational performance.
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