Viavi Solutions (VIAV) Stock Forecast & Price Target

Viavi Solutions is viewed positively because its modular MAP-300 platform appears well positioned to capture a larger share of the higher-content NPO/CPO testing market, where test insertions are roughly 4x transceivers and competitors are weaker. Management’s growing confidence in a multi-year up cycle is reinforced by strong demand in Data Center, OCS, fiber monitoring, and MilAero/PNT, while early CPO shipments and the expected OCS ramp could materially expand sales from about $50mn to $200mn. The company’s recent operating momentum is equally supportive, with 4Q26 revenue up 53% year over year to $443mn, NSE up 69%, gross margin at 62.3%, and FY27 EPS estimates moving to $1.65, with FY28 seen above $2.

Viavi Solutions is exposed to several fundamental headwinds that weaken its outlook, including tight component supply, higher transportation and logistics costs, and the risk that these pressures persist long enough to force revenue and gross margin revisions. Total revenue guidance of $450mn to $460mn and NSE revenue of $360mn to $368mn suggest near-term resilience, but the business still depends heavily on Telecom and Data Center capex, where economic weakness, customer stress, or weaker AI spending could slow growth. Added downside comes from uncertainty around the 800G and 1.6T lab test opportunity and the possibility that highly profitable OSP anti-counterfeiting demand cools as economies become more cash-free.