Viavi Solutions: Revenue Up 52.5%, but a 36x EV/EBITDA Multiple Keeps the Signal at Hold

Viavi Solutions has grown revenue 52.5% over the trailing twelve months, and its shares now trade at roughly 4.5 times their two-year low. This Viavi Solutions stock analysis, based on Yahoo Finance data as of September 28, 2026, finds a business with strong growth credentials and a 60.9% gross margin, offset by a net loss and valuation multiples that already price in much of that momentum – a combination our quantitative model rates a Hold.

What Is Happening With the Stock Price

Shares trade at $40.68, up from a two-year low of $9.03 and 26.5% below the two-year high of $55.33, giving the company a market cap of $10.04 billion. That places the stock toward the upper end of its two-year range, about 68% of the way from low to high. The shares posted a sharp one-day gain in the latest session, following the company’s September 24 announcement that its Aerospace and Defense division had achieved Level 2 CMMC cybersecurity certification, a requirement for U.S. Department of Defense contractors. That supports eligibility for defense work rather than adding revenue directly, so the move reads more as sentiment than a change in fundamentals.

Quality: Is This a Financially Sound Business?

Viavi’s Quality score is 56/100, a middling result that reflects a gap between operating strength and bottom-line profit. Gross margin is a healthy 60.9% and operating margin is 14.3%, yet net profit margin is -2.0% and earnings per share are -$0.13. That spread suggests interest, taxes or other non-operating items are absorbing operating profit – or that the figures cover different reporting periods, which is worth checking in the company’s filings.

Cash flow is the stronger part of this Viavi Solutions stock analysis: free cash flow of $159M on $1.5B of revenue, a margin of roughly 10%, despite the reported net loss. That usually points to meaningful non-cash charges in the income statement. The balance sheet is sound, with a current ratio of 1.85, a quick ratio of 1.51 and debt-to-equity of 0.48. Capital efficiency is weak: return on equity is -2.7%, consistent with the net loss, while the positive 4.5% return on assets suggests the two ratios draw on different profit measures or periods.

Growth: Does This Company Have Real Upside?

Growth is Viavi’s clear strength, with a score of 80/100. Revenue rose 52.5% over the trailing twelve months, far faster than the five-year compound annual growth rate of 11.1%. A step-change that large relative to the long-run trend can reflect acquisitions as well as organic demand – the company has noted that it acquired Inertial Labs in 2025 – so the five-year figure may be a better guide to the underlying pace until more quarters confirm the new run rate.

The reported TTM earnings growth of 326.5% should be treated with caution. Earnings per share remain negative, and percentage changes calculated from a small or negative base can swing to extreme values without saying much about the trend. The 60.9% gross margin gives the business room to convert revenue growth into operating profit if costs are contained, but at 6.64 times EV/revenue the market is already paying a growth-company multiple.

Opportunity: Is Now a Good Time to Enter?

Valuation is where the case weakens, and the Opportunity score of 16/100 reflects it. With negative earnings there is no meaningful P/E ratio, so the model leans on other measures: EV/EBITDA of 36.17, price-to-book of 6.94 and a free cash flow yield of just 1.6% all indicate a stock priced for continued strong execution. The company pays no dividend.

The price position adds little support. The shares sit in the upper part of their two-year range, so the contrarian entry point near the lows has passed, even though the stock remains 26.5% below its high. Momentum is evident, but the valuation leaves limited cushion if growth slows.

Viavi Solutions Stock Analysis: The Bottom Line

The bull case for Viavi Solutions rests on accelerating revenue, a 60.9% gross margin, positive free cash flow and a liquid balance sheet. The bear case centers on a business that is not yet profitable on a net basis, a revenue surge whose durability is unproven, and multiples – 36.17 times EV/EBITDA and 6.94 times book – that assume the growth continues. Key risks include the TTM growth rate fading back toward the 11.1% five-year trend, continued leakage between operating and net profit, and a de-rating if sentiment around the recent rally cools.

Combining Quality (56/100), Growth (80/100) and Opportunity (16/100), our quantitative model produces a Recommendation Score of 51/100, which falls in the Hold band – and the Opportunity score on its own sits well below the 30/100 the model requires before it will issue a Buy. That label reflects the StreetBriefs scoring model – a data-driven signal for further research, not a personalized recommendation to transact. For anyone following up on this Viavi Solutions stock analysis, the metrics to watch are whether net margin turns positive and whether revenue growth holds up once the recent jump is in the base.