Viavi Solutions stock drops more than 5% after post-earnings rally falters amid downside pressure

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Viavi solutions slides 5.04% today

Highlights

Viavi Solutions reported fiscal Q4 revenue of $443.1 million, up 52.5%, and a 24% operating margin, surpassing expectations.
Full-year net sales rose 40% to $1.5 billion, with narrowed annual net loss at $30.4 million despite ongoing share price pressure.
Viavi Solutions stock trades below short-term averages with downside bias, expected to range between $35.46 to $41.62 over five days.

Earnings beat contrasts with persistent selloff despite strong demand

Viavi Solutions reported strong fiscal fourth-quarter results for the period ended June 27, 2026, with revenue of $443.1 million, up 52.5% year-over-year, and a 24% operating margin. Earnings per share reached $0.34, exceeding analyst expectations, and the quarter saw continued demand from data center, aerospace, and defense customers, along with contributions from the acquired Spirent product lines. Full-year net sales increased by 40% to $1.5 billion, and the annual net loss narrowed to $30.4 million, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, notes the sharp 5.04% pullback reflects persistent technical and sentiment-driven downside after a brief post-earnings spike. He points out that despite strong revenue growth and margin improvement, price action still signals trader skepticism due to continued selling below key moving averages and mixed momentum signals. Kharitonov cautions that overbought conditions and high intraday volatility may expose the stock to rapid declines if support at $38.44 fails. He is wary of the narrowing annual net loss, arguing near-term risks are unlikely to abate quickly. "In my view, market enthusiasm around earnings is fading fast, and current technicals warn that VIAV may underperform as sellers retain control," he says.

Viktoras Karapetjanc, expert at Traders Union, sees the strong revenue growth and improved operating margins as confirmation of a resilient fundamental story. He highlights rising demand from critical industries and successful integration of acquired product lines as powerful drivers for further expansion. Karapetjanc believes the recent price weakness is a temporary reaction within a bullish structure, supported by robust annual sales and narrowing losses. He remains positive on forward setups as volatility creates new entry points for buyers. "VIAV’s growth runway is fully intact — I expect the market to reward this operational strength with renewed upside in coming sessions," he says.

Jainam Mehta, market strategist, points out that VIAV sits just above its 200-day moving average as medium-term technicals come under stress. He observes that mixed momentum and a neutral RSI signal indecision but sees potential for tactical trades on volatility stretches. Mehta suggests a breakout above $39.11 could spark a swift rally, while a break below $38.44 may trigger broader downside moves. "With high intraday swings, I see opportunities for nimble traders on both sides of the current range," he says.

Bearish momentum gains as price tests key support and volatility spikes

Viavi Solutions is trading below its 20-day and 50-day moving averages at $39.11 and $44.64, respectively, but remains above the 200-day level at $32.44. Resistance is identified at $39.11, with support at $38.44. Momentum indicators are mixed: MACD and ADX suggest bearish momentum, RSI remains neutral near 50 with a bullish outlook, Stochastic RSI signals overbought conditions, and CCI is neutral. Bull/Bear Power (BBP) is positive at 2.72, pointing to intraday buyer dominance, but overbought risks are also noted. The price is near session lows after a 5.04% drop, with intraday volatility high at 9.39%. Overall, technicals reflect sustained pressure and a cautious near-term tone.

Earlier, analysts noted that despite a post-earnings rally, Viavi Solutions was facing persistent short- and medium-term downside pressure within an otherwise bullish long-term structure. The latest results and heightened volatility reinforce the case for sustained rangebound trading, making $39.11 and $38.44 important levels to monitor for potential breakout or breakdown in the sessions ahead.

Source of Data: VIAV Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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