Viavi Solutions has been selected by the U.S. Army to supply its T/Rx software-defined transceiver system for modernizing military test ranges. The platform will create realistic electromagnetic environments for testing drones, counter-drone systems, and low-cost interceptors, replicating contested battlefield conditions. The company's technology was previously used at Camp Grayling to recreate electronic warfare conditions observed in Ukraine.

The Zacks Communication - Components industry is positioned for long-term growth driven by 5G deployment, IoT adoption, and fiber network expansion. Despite near-term headwinds including elevated inventory levels and margin erosion, Ciena Corp., Viavi Solutions Inc., and Ooma Inc. are well-positioned to benefit from increasing demand for scalable network infrastructure and cloud connectivity solutions.

The Zacks Communication - Components industry is positioned for long-term growth driven by 5G deployment, IoT adoption, and fiber network expansion. However, elevated inventory levels, high capital expenditure, margin erosion, and geopolitical conflicts present near-term challenges. Three companies—Ciena, Viavi Solutions, and Ooma—are highlighted as well-positioned to benefit from increasing demand for scalable infrastructure.

Viavi Solutions (VIAV) has surged 268.5% over the past year, significantly outperforming its industry peers. The company's growth is driven by strong AI data-center demand, improved profitability with non-GAAP operating margins expanding 630 basis points to 20.6%, and the Spirent acquisition which enhanced testing capabilities. For fiscal Q1, management projects revenues of $450M-$460M and non-GAAP EPS of 40-42 cents, indicating continued momentum.

Onto Innovation (ONTO), a semiconductor metrology and inspection solutions provider, has earned a top Zacks Rank rating driven by explosive AI infrastructure demand. The company reported Q2 2026 revenue of $343.1 million (35.3% YoY growth) with expanding margins and strong EPS guidance. Multiple analysts raised price targets to $360-$400, citing tailwinds from advanced packaging, HBM demand, and the Dragonfly G5 platform ramp. A strategic $710 million investment in Rigaku Holdings for hybrid metrology capabilities further strengthens its competitive position.

Keysight Technologies launched a new 20 GHz PSG XG7-class analog signal generator featuring dual independent channels in a compact 2U chassis, designed to improve measurement accuracy and testing capacity for wireless, aerospace, defense, and high-speed digital applications. The instrument offers low phase noise, low amplitude modulation noise, and a broadband noise floor of -166 dBc/Hz. Keysight's stock has rallied 108.3% over the past year and currently holds a Zacks Rank #1 (Strong Buy) rating, with earnings estimates rising significantly for 2026 and 2027.

Viavi Solutions launched the CyberFlood CF50, a compact 1U platform for testing application performance, security, and AI inference at speeds up to 100G. The solution offers industry-leading low power consumption, post-quantum cryptography support, and TLS performance 1.75x faster than competitors. VIAV stock has surged 229.6% over the past year and currently holds a Zacks Rank #1 (Strong Buy) rating.

Ciena Corporation reported record fiscal Q3 revenue of $1.67B (up 37% YoY) with adjusted EPS surging 215% to $2.11, driven by strong optical networks demand from AI infrastructure investments. The company projects fiscal 2027 revenue growth of at least 30% to $8.3-8.4B, though supply constraints remain a limiting factor. Competitors Corning and Viavi Solutions also benefit from AI infrastructure and optical connectivity tailwinds.

Ciena Corporation reported Q3 revenue growth of 37% and adjusted EPS surge of 215%, driven by strong AI network spending. The company's backlog exceeded $10 billion with most demand for 2027, and it projects at least 30% revenue growth in fiscal 2027. Competitors Corning and Viavi Solutions are also benefiting from AI infrastructure and data center investments.

Ciena Corporation reported strong Q3 fiscal 2026 results with adjusted earnings of $2.11 per share (215% YoY growth) and revenues of $1.67 billion (37% YoY growth), driven by AI-led cloud demand. Cloud provider revenues jumped 82% YoY and represented 53% of total sales. The company raised full-year 2026 guidance to $6.42 billion and projects at least 30% revenue growth for fiscal 2027.

Keysight Technologies is advancing its electronic design automation (EDA) solutions for semiconductor development, helping companies like AttoTude reduce design cycles by over 50% and achieve faster chip development for AI infrastructure. The company faces competition from Viavi Solutions and Vistance Networks, which are also expanding their testing and network solutions portfolios.

Viavi Solutions (VIAV) reported robust Q4 fiscal 2026 results with revenue surging 52.5% to $443.1M and adjusted EPS jumping 161.5% to 34 cents, beating consensus estimates. AI data centers now account for roughly half of NSE segment revenues. The company guided Q1 revenue to $450-460M and non-GAAP EPS to 40-42 cents, signaling continued momentum. The Spirent acquisition and aerospace & defense business provide additional growth drivers.