VIAV vs. GLW: Which Optical Networking Stock is the Better Buy?
Viavi Solutions, Inc.VIAV and Corning IncorporatedGLW are both key players in the optical communications ecosystem. Viavi provides network testing, monitoring and optical technologies used in telecom and data-center networks, while Corning is a leading supplier of optical fiber, connectivity solutions, and infrastructure for broadband, cloud and AI-driven networks.
AI data center expansion, cloud computing growth, fiber to the home and broadband deployment, and network modernization are driving growth in the optical communication ecosystem. Per a report from Future Market Insights, the optical communication and networking market is projected to grow at a compound annual growth rate of 8.7%.
With deep industry expertise, both VIAV and GLW are strategically positioned in this growing market. Let us analyze in depth the competitive strengths and weaknesses of the companies to understand who is in a better position to maximize gains from the emerging market trends.
The Case for VIAV
Viavi is benefiting from accelerating AI infrastructure investments by hyperscalers, semiconductor manufacturers, optical module suppliers and networking equipment vendors. Strong demand for laboratory, production and field-testing solutions is also a major growth driver. Growing investment in higher-speed optical transport, silicon photonics, PCIe interconnects and high-speed Ethernet technologies is driving demand for VIAV’s solutions. The company expects this momentum to continue in fiscal 2026.
Moreover, the buyout of Spirent's high-speed Ethernet, network security and channel emulation product lines is performing better than expected. Management expects the acquired business to contribute approximately $200 million in annual revenues, above the initial estimate of $188 million. The acquisition also expands Viavi's presence among enterprise customers and strengthens its position in high-speed Ethernet testing. This is a critical component in AI data center expansion.
The company continues to benefit from solid cash flow growth. In the first quarter of fiscal 2026, the company delivered $31 million in operating cash flow and $22.5 million in free cash flow. Healthy cash flow growth provides financial flexibility to effectively pursue growth initiatives, strategic acquisitions, and strengthen its balance sheet through debt reduction and support long-term shareholder value creation. Beyond optical communication, aerospace and defense also remain major growth drivers for the company. Solid demand for positioning, navigation and timing (PNT) solutions is driving growth.
The company is also placing strong emphasis on expanding its portfolio offerings. It recently introduced AI Experts under its newly introduced NITRO AI portfolio. The AI Experts offer automated test configuration, analyze network data, diagnose issues, generate reports, assist with troubleshooting and validation workflows. Such innovation bodes well for sustainable growth.
The Case for GLW
Corning continues to strengthen its competitive position through innovation across optical connectivity, advanced glass and semiconductor applications. Secular demand for bandwidth, cloud computing and AI infrastructure continues to support Corning’s Optical Communications business. Corning finalized two additional long-term hyperscaler agreements similar in size and duration to its previously announced up-to-$6 billion Meta agreement. The company also announced a long-term partnership with NVIDIA to expand U.S.-based optical connectivity manufacturing capacity by 10 times and increase domestic fiber production capacity by more than 50%.
Corning is also gaining from ongoing fiber-to-the-home deployments and data-center interconnect projects as telecom operators continue expanding broadband networks. Strong demand for its domestically manufactured solar products is becoming another growth engine. In the first quarter of 2026, Solar revenues surged 80% year over year to $370 million, supported by robust demand across the company’s polysilicon, wafer and module manufacturing operations.
However, Corning’s optical communication growth is heavily reliant on AI infrastructure investments by hyperscalers. Any slowdown in AI-related capital spending or changes in deployment plans by large cloud customers could affect demand for its fiber, cable and connectivity solutions. The company faces competition from another major industry leader, Amphenol CorporationAPH. Amphenol’s high-speed and power interconnect products are increasingly tied to AI data-center buildouts. The company acquired CommScope’s Connectivity and Cable Solutions business. The buyout reflects Amphenol’s strategy of expanding its range of high-technology interconnect products through both innovation and acquisitions, positioning the company to benefit as electronics content rises across multiple end markets. Growing competition from APH can impact GLW’s prospects to some extent.
It remains exposed to customer concentration across several business segments. Any slowdown in customer demand, inventory corrections or financial weakness among key customers could adversely affect revenue visibility and cash flow generation. It maintains a sizeable presence in China, which exposes the company to geopolitical tensions and tariff-related uncertainty.
How Do Zacks Estimates Compare for VIAV & GLW?
The Zacks Consensus Estimate for VIAV’s 2026 sales implies year-over-year growth of 39.09%, while that for EPS suggests growth of 97.87%. The EPS estimate has been trending northward (up 10.71%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GLW’s 2026 sales implies year-over-year growth of 13.92%, while that for EPS suggests an increase of 26.59%. The EPS estimate has been trending upward (up 1.92%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of VIAV & GLW
Over the past year, VIAV has gained 398.5%, while GLW has gained 248.9% over the same period.
Image Source: Zacks Investment Research
VIAV looks more attractive than GLW from a valuation standpoint. Going by the price/sales ratio, VIAV’s shares currently trade at 39.55 forward earnings, lower than 49.04 for GLW.
Image Source: Zacks Investment Research
VIAV or GLW: Which is a Better Pick?
Viavi carries a Zacks Rank #2 (Buy) at present, while Corning carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Viavi and Corning are taking several steps to propel revenue growth in the upcoming quarters. Viavi has delivered better price performance and looks more attractive from a valuation standpoint. Despite a diverse portfolio, Corning’s high exposure to China and high customer concentration remain concerns. While Corning's optical communications business is increasingly tied to AI-driven fiber deployments and hyperscaler spending, Viavi benefits from a broader set of growth drivers, including AI infrastructure, high-speed Ethernet testing, silicon photonics, aerospace and defense. Owing to these factors and with a better Zacks Rank, Viavi is a better investment choice at present.
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