Viavi Solutions Soars 21% on Q1 Earnings Surge and Strategic Acquisition Momentum

Summary
• VIAV’s stock surges 21.1% intraday, hitting $16.93 from $13.98
• Q1 revenue jumps 25.6% YoY to $299.1M, driven by data center and defense demand
• Spirent acquisition fuels optimism in optical tech expansion
• 52-week high of $17.142 nearly reached amid robust non-GAAP earnings

Viavi Solutions (VIAV) has ignited a dramatic intraday rally, surging 21.1% to $16.93 as Q1 fiscal 2026 results and strategic acquisitions catalyzed investor enthusiasm. The stock’s explosive move, fueled by a 25.6% YoY revenue increase and a $549M cash reserve, underscores renewed confidence in its data center and aerospace segments. With the Spirent acquisition poised to expand its high-growth footprint, traders are recalibrating positions ahead of the 52-week high and key technical levels.

Q1 Earnings and Spirent Acquisition Drive 21% Rally
VIAV’s 21.1% intraday surge stems from a confluence of robust Q1 results and strategic momentum. The company reported $299.1M in revenue, a 25.6% YoY increase, with non-GAAP operating margin expanding 570 bps to 15.7%. CEO Oleg Khaykin highlighted 'strong demand from the data center ecosystem and aerospace & defense customers,' while the acquisition of Spirent’s test business is expected to amplify its position in high-growth optical connectivity. The stock’s breakout above the 52-week high of $17.142 and a 38% year-to-date gain reflect market validation of these catalysts.

Communication Equipment Sector Gains Momentum as Keysight Rises 3.4%
The Communication Equipment sector, led by Keysight (KEYS) with a 3.4% intraday gain, aligns with VIAV’s rally as demand for data center infrastructure and 5G testing solutions intensifies. While VIAV’s 21.1% surge outpaces the sector’s broader move, both reflect optimism around AI-driven infrastructure upgrades and supply chain normalization. VIAV’s strategic focus on optical security and high-speed Ethernet positions it to capture a larger share of the $1.2T global test and measurement market.

Bullish Setup: ETFs and Options for Capitalizing on VIAV’s Breakout
• MACD: 0.45 (bullish divergence), RSI: 72.76 (overbought), 200D MA: $10.88 (well below current price)
• Bollinger Bands: $12.10–$14.12 (price at 16.93, far above upper band)
• Support/Resistance: 30D support at $12.75, 200D support at $9.99

VIAV’s technicals signal a continuation of its bullish trend, with the 52-week high of $17.142 and $18.00 as key resistance targets. The stock’s 72.76 RSI and 0.45 MACD suggest momentum remains intact, while the 4.99% turnover rate indicates strong liquidity. For options, VIAV20251121C17 and VIAV20251121C18 stand out:

• VIAV20251121C17 (Call, $17 strike, Nov 21 expiry):
- IV: 30.13% (moderate), Leverage: 28.53%, Delta: 0.565 (moderate sensitivity), Theta: -0.027 (high time decay), Gamma: 0.304 (high sensitivity to price swings), Turnover: 36,600 (liquid)
- Payoff at 5% upside (17.78): $0.78/share. This contract balances leverage and liquidity, ideal for capitalizing on a breakout above $17.142.

• VIAV20251121C18 (Call, $18 strike, Nov 21 expiry):
- IV: 39.20% (high), Leverage: 48.91%, Delta: 0.332 (moderate), Theta: -0.0227 (high decay), Gamma: 0.216 (strong gamma), Turnover: 10,129 (liquid)
- Payoff at 5% upside (17.78): $0.78/share. The high leverage and gamma make this ideal for aggressive bulls expecting a push toward $18.00.

Action: Aggressive bulls may consider VIAV20251121C18 into a breakout above $17.142, while conservative traders can target VIAV20251121C17 for a balanced play on the 52-week high.

Backtest Viavi Solutions Stock Performance
Here is the completed event-backtest study for “VIAV.O – 21 %+ intraday–high surges” covering 1 Jan 2022 – 30 Oct 2025.jgy-json-canvas{ "show_type": "jgyNewLowcode", "config": { "type": "iwencai/stockBackTesting", "version": "0.0.2", "url": "https://cdn.ainvest.com/frontResources/s/aime-frontend-foiegras-outer/stockBackTesting/0.0.2/stockBackTesting@0.0.2index.js" }, "data": { "datas": [ { "Backtest Object": "VIAV.O", "Backtest Event": "21 %+ intraday-high surge (detected dates)", "Backtest Period": "2022.01.01 – 2025.10.30", "backtest_result": "https://cdn.ainvest.com/backtest/agent/session/784562/39ecac13-e068-4416-be35-b851b5da79cb/1ab1d349-355f-4028-a5a1-c6869f566850/viav_21pct_intraday_event_bt_vis.json" } ] }}jgy-json-canvasKey take-aways (text summary)1. Sample size = 2 occurrences • 2025-02-03 • 2025-08-11 (source: automated 21 %+ screen). A very low count limits statistical power—interpret with caution.2. Post-event performance (close-to-close, equal-weighted) • 1-day: +1.2 % (100 % win rate) • Peak relative edge around day 2 (+2.2 %), then fades. • By day 30 cumulative excess = +2.3 % vs benchmark (not significant).3. Significance tests: none of the horizons reach conventional confidence thresholds, mainly due to the minimal sample.4. Practical implication • For VIAV, an intraday spike of ≥21 % did not reliably precede sustained strength in the subsequent month during 2022-25. • Strategy traders should treat such moves case-by-case rather than rely on a systematic long signal.Parameter notes (auto-chosen) • We used close prices for return computation, a 30-day event window, and the full period 2022-01-01 – 2025-10-30 (per user “2022 to now”). • No risk-control exits were applied because this is an event study, not a trade strategy.Please review the interactive module above for full tables & charts.

VIAV’s Breakout: A High-Velocity Trade with Clear Catalysts
VIAV’s 21.1% surge is underpinned by Q1 earnings strength, strategic acquisitions, and a favorable technical setup. With non-GAAP EPS guidance of $0.18–$0.20 for Q2 and a $549M cash reserve, the stock is positioned to test $18.00. Investors should monitor the 52-week high and $17.50 psychological level, while the sector leader Keysight (KEYS) rising 3.4% signals broader industry tailwinds. Act now: Buy VIAV20251121C18 for a high-leverage play on the $18.00 target, or watch for a pullback to $16.00 to re-enter long positions.