What Happened?

Shares of network testing solutions company Viavi Solutions (NASDAQ: VIAV) jumped 14.3% in the afternoon session after the company reported strong fourth-quarter 2025 results that beat expectations and provided an optimistic forecast for the upcoming quarter. 

Viavi announced revenue of $369.3 million and adjusted earnings per share of $0.22, exceeding Wall Street's estimates of $365.4 million and $0.19, respectively. The positive results were bolstered by a robust outlook. Management guided for first-quarter 2026 revenue of approximately $393 million, which was about 10% higher than analysts had anticipated. Similarly, the adjusted earnings per share guidance of $0.23 also came in well ahead of consensus estimates, signaling strong momentum for the network testing solutions company.

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What Is The Market Telling Us

Viavi Solutions’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Viavi Solutions and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 6% on the news that B. Riley raised its price target on the company's stock to $22 from $18 and maintained its 'Buy' rating. This move by the investment firm suggested a stronger belief in the company's future stock performance. The new price target of $22 indicated a significant potential upside from its previous valuation. By keeping the 'Buy' rating, B. Riley reinforced its positive view on Viavi Solutions. The report also noted that, according to analysts polled by FactSet, the average rating for the stock was 'overweight' with a mean price target of $19.57, showing a generally positive sentiment among market watchers.

Viavi Solutions is up 33.1% since the beginning of the year, and at $24.15 per share, has set a new 52-week high. Investors who bought $1,000 worth of Viavi Solutions’s shares 5 years ago would now be looking at an investment worth $1,563.

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