Why Is Viavi Solutions Stock Down Today?

Viavi Solutions (VIAV) fell 6.985% in the fifteen minutes after reporting results that cover both its fiscal fourth quarter and its full fiscal year 2026, since Viavi's fiscal year ends in late June. The quarter itself beat estimates: EPS of $0.34 against $0.30 expected, and revenue of $443.1 million against $432.62 million expected.

Viavi provides network test-and-measurement and optical technology to communications networks, data centers, and aerospace and defense customers. For the full fiscal year, revenue grew 40.0% to $1.518 billion and non-GAAP EPS rose 112.8% to $1.00 — but the full year's GAAP result was still a net loss of $30.4 million, or $0.13 per share, even after a profitable fourth quarter. CEO Oleg Khaykin said the fourth-quarter and full-year performance exceeded expectations, crediting the company's diversification into the data-center ecosystem and aerospace-and-defense markets as a key growth driver for the year. The Network and Service Enablement segment led that growth, with $1.182 billion in fiscal-year revenue, up 52.3%.

One likely reason for the stock's reaction: Viavi issued guidance only for the first quarter of fiscal 2027 — revenue of $450-460 million and non-GAAP EPS of $0.40-0.42 — without giving a full fiscal-year 2027 outlook. The company also flagged its financial results as preliminary, pending the final 10-K filing. The company's liquidity position remains solid, with $656.7 million in cash and investments against $641.9 million in total debt, and $113.9 million in full-year operating cash flow.