Time to buy VIAV

Listen up regards I'm not really sure how I learnt about VIAV but I think it has great potential to blow up. I think I got into it over researching optical stocks. First bought a 31 call then decided to add shares before earnings. After making bank on Sandisk and many others in the ai data center play I am constantly looking for the next monster. With AI HELP 📊 Latest earnings (Q3 FY2026 — reported April 2026) 🔥 Headline numbers Revenue: $406.8M (+42.8% YoY) � VIAVI Solutions Investor Relations +1 EPS (non-GAAP): \~$0.27 (beat estimates) � AllInvestView Operating income: $24.8M (+191% YoY) � VIAVI Solutions Investor Relations Gross margin: \~57.5% (improving) � VIAVI Solutions Investor Relations 👉 Translation: Growth was extremely strong + they beat expectations ⚠️ The catch (this is important) GAAP EPS: only $0.03 (down YoY) � VIAVI Solutions Investor Relations +1 Net income dropped \~67% YoY � Quiver Quantitative Cash flow was negative this quarter � TechStock² 👉 Translation: They’re growing fast, but true profitability is still weak 🚀 Why the earnings were strong 1. Data center / AI boom Huge demand from AI + cloud infrastructure One of the biggest drivers of the 40%+ revenue jump � Investors 2. Aerospace & defense growth Stable, high-margin business helping results � Stock Titan 3. Recent acquisition impact Spirent assets boosting revenue growth (network testing) � Investors 🔮 Forward guidance (what’s next) Next quarter revenue: $427M–$437M Expected EPS: $0.29–$0.31 � Stock Titan +1 👉 That implies continued growth momentum 📉 Market reaction Stock jumped sharply after earnings beat � TechStock² Also hit new highs recently � The Motley Fool 👉 Investors focused on growth + AI exposure, not profit issues The 67% drop in net income for VIAV looks alarming—but it’s actually not because the business got worse. It’s mostly due to accounting and one-time costs. Here’s the real breakdown 👇 🧠 The core reason (simple version) 👉 Profits didn’t collapse — accounting profits did GAAP net income: ↓ 67% Non-GAAP (adjusted) income: ↑ \~99% � VIAVI Solutions Investor Relations That tells you the drop is mostly due to extra expenses, not weak operations 📉 What actually caused the drop 1. 💸 One-time charges (biggest reason) VIAV had multiple non-recurring expenses: Restructuring costs Asset write-offs Facility-related charges (like damage repairs) Acquisition/integration costs � PR Newswire 👉 These hit GAAP earnings hard, but aren’t part of normal business 2. 🏦 Debt + financing costs Paid off debt early and refinanced Took losses tied to debt extinguishment � PR Newswire 👉 Basically: they cleaned up their balance sheet—but took a short-term hit 3. 📊 Higher amortization (acquisition impact) Buying companies (like Spirent assets) adds: amortization costs integration expenses 👉 These reduce reported profit even if revenue grows 4. 💰 Taxes and accounting adjustments Taxes swung significantly year-over-year Accounting adjustments (like contingent liabilities) added costs � PR Newswire 5. 🧾 Cash flow + payments timing Used $26M cash in operations partly due to: earn-out payments (from acquisitions) working capital timing � The Motley Fool +1 👉 Not permanent—but drags reported earnings temporarily. VIAV looks primed to keeps popping off. It has already ran hard this year but I think with optical stocks starting to report this week VIAV will continue to climb higher. Do your own dd and decide if you like it but I am definitely going to buy more come Monday.