Viavi Solutions' stock fell 5.76% during intraday trading on Monday, as the optical communication sector experienced broad selling pressure. The decline occurred as investors took profits following a sharp rally in preceding sessions.

The pullback appears to reflect sector-wide profit-taking rather than any company-specific negative development. Other optical communication names also saw notable declines, with Applied Optoelectronics dropping 12.24%, Lumentum falling 7.9%, and Ciena declining 6.2%.

Viavi Solutions is scheduled to report quarterly results soon, with consensus estimates calling for significant year-over-year growth in both revenue and earnings. The company had recently surged on strong earnings expectations and an endorsement from investment bank Needham, which highlighted Viavi as a core network test and measurement supplier benefiting from AI data center optical module deployment.