Research · Sep 3, 2026
[VIAV] Viavi Solutions Thesis 2026: Network Service Enablement Cycle Drives Optical Security Recovery
Viavi Solutions Inc. (NASDAQ: VIAV) FY2025 revenue ~$1.05-1.15B (+0-7%) with adj. EPS ~$0.55-0.70 reflecting continued post-2024 ~$770-820M aggregate Network and Service Enablement (NSE) revenue (~73%+ aggregate revenue mix) + selected continued post-2024 ~$280-330M aggregate Optical Security and Performance Products (OSP) revenue (~26% aggregate revenue mix) + selected post-2024 selected various trough cycle inventory destocking + selected post-September 2024 ~$1.2B+ aggregate Spirent Communications proposed acquisition under continued President + CEO Oleg Khaykin since 2016 (~9-year tenure as Viavi Solutions CEO). One of the leading US network test + monitoring instruments + optical security + selected various enterprise networking platforms. Founded August 2015 as Viavi Solutions Inc. via JDS Uniphase Corporation spinoff (~10-year heritage); selected post-August 2015 NASDAQ listing; selected post-2016 Oleg Khaykin CEO appointment; selected post-September 2024 ~$1.2B+ aggregate Spirent Communications proposed acquisition. Headquartered in Chandler Arizona; ~3,800+ employees globally with ~$1.05-1.15B revenue. Two primary business segments: Network and Service Enablement NSE (~73%+ ~$770-820M), Optical Security and Performance Products OSP (~26% ~$280-330M). Geographic mix: US ~30%+ + EMEA ~30% + Asia Pacific ~30%+ + selected various ~10%. NSE cycle: ~$770-820M NSE revenue; selected various 5G + Fiber + AI datacenter network test + monitoring demand recovery. OSP: ~$280-330M OSP revenue; selected primary anti-counterfeiting + 3D sensing iPhone Face ID. President + CEO Oleg Khaykin since 2016 (~9-year tenure); CFO Henk Derksen. Capital return + Spirent acquisition: post-September 2024 ~$1.2B+ aggregate Spirent Communications proposed acquisition; ~$0M dividend FY2025 (selected primary capital deployment for M&A); ~$50-100M aggregate FY2024-2025 buyback program; aggregate capital return ~$30-50M; cash + investments balance ~$0.5-0.7B; net leverage ratio ~1.5-2.0x; investment-grade pathway B1/B+. FY2026 thesis: Network and Service Enablement cyclical recovery + Optical Security and Performance Products + selected post-September 2024 ~$1.2B+ aggregate Spirent Communications proposed acquisition + ~$0.5-0.7B aggregate cash + investments balance + ~1.5-2.0x net leverage + selected pathway to dividend initiation FY2026-2027. Risks: NSE cyclical recovery, Keysight + EXFO + Anritsu competition, Spirent acquisition execution + regulatory review, 3D sensing iPhone Face ID, US Federal Reserve + international banknote anti-counterfeiting cycle.