Why Did Viavi Solutions Stock Soar 22.54%?

On August 8, 2025, Viavi Solutions experienced a significant surge in its stock price, rising by 22.54% in pre-market trading.

Viavi Solutions reported its fourth-quarter earnings for fiscal year 2025, surpassing expectations with an earnings per share (EPS) of $0.13. The company's net revenue for the quarter was $290.5 million, which was at the high end of their guidance range. This marked a 15.3% increase from the prior year quarter, driven by strength in both the Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments.

The NSE segment, which supplies network testing tools and monitoring equipment, saw revenue rise to $209.1 million, up 14.8% from a year earlier. The OSP segment, which produces anti-counterfeiting pigments and 3D sensing filters, posted a 16.6% increase in revenue, reaching $81.4 million. The company's operating margins improved on both a GAAP and non-GAAP basis, with a non-GAAP operating margin of 14.4%, a 3.5 percentage point gain from last year.

Viavi Solutions' strong financial performance was also supported by its strategic acquisitions and investments in research and development. The company invested $57.2 million in R&D, up from $52.5 million a year earlier, to support new solutions for fiber and wireless networks and innovative technologies for anti-counterfeiting and 3D sensing. The integration of the Inertial Labs acquisition is expected to strengthen future growth and segment diversification.