We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Viasat posted Q2 revenues of $1.14B, up from $1.12B, though slightly below consensus estimates.
Non-GAAP net income hit $12.6M, or $0.09 per share, topping expectations by $0.20.
Growth in government satcom and cyber defense offset weaker maritime and broadband demand.
Viasat, Inc. (VSAT - Free Report) reported mixed second-quarter fiscal 2026 results, wherein the bottom line beat the Zacks Consensus Estimate but the top line missed the same.
The company’s top line improved year over year, reflecting growth in government satcom and aviation services in the Communication Services segment. Growth in information security and cyber defense in the Defense and Advanced Technologies segment also supported the top line.
VSAT’s Bottom Line
Viasat incurred a net loss of $61.4 million, or a loss of 45 cents per share, compared with a net loss of $137.6 million, or a loss of $1.07 per share, in the prior-year quarter. The narrower loss was due to lower depreciation and amortization, selling, general, and administrative costs and a favorable service mix.
Excluding non-recurring items, Viasat reported a non-GAAP net income of $12.6 million, or 9 cents per share against a net loss of $29.4 million, or 23 cents in the prior-year period. The bottom line beat the Zacks Consensus Estimate by 20 cents.
Revenues rose to $1.14 billion, up from $1.12 billion. The figure missed the consensus estimate by $8 million. Product revenues were $319.4 million, down from $323.9 million in the year-ago quarter. Net sales from Service increased to $821.5 million from $798.6 million a year ago.
Revenues from the Communication Services segment were $837 million, up from $826 million in the prior-year quarter. Growth in government satcom and aviation services was offset by a decline in maritime and U.S. fixed broadband business. However, the segment’s adjusted EBITDA improved to $337 million from $318 million.
Revenues from the Defense and Advanced Technologies (“DAT”) segment were $304 million, up 3% year over year. The uptick was primarily driven by solid traction across information security and cyber defense. Adjusted EBITDA decreased to $48 million from $57 million in the year-ago quarter.
Other Details of VSAT
In the September quarter, Viasat reported an operating income of $35.8 million against a net loss of $24.7 million in the prior-year quarter. Adjusted EBITDA was $385 million, up from $375 million in the year-ago quarter.
VSAT’s Cash Flow & Liquidity
During the second quarter of fiscal 2026, Viasat generated an operating cash flow of $282 million compared with $239 million in the prior-year period, reflecting improved operating performance and a decline in working capital largely from increases in accounts payable. As of Sept. 30, 2025, the company had $1.2 billion in cash and cash equivalents, with a net debt of $5.5 billion.
Viasat’s Fiscal 2026 Outlook
For fiscal 2026, management expects low single-digit revenue growth and flattish adjusted EBITDA year over year. Viasat anticipates the Communication Services segment’s flat revenue performance, due to low double-digit growth in aviation services, partially offset by a lower rate of declines in fixed services and other. DAT revenue growth is anticipated to be in the mid-teens, primarily driven by strong double-digit growth in both information security and cyber defense, and space and mission systems. Capital expenditure is forecasted to be approximately $1.2 billion (includes approximately $400 million for Inmarsat-related capital expenditures).
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release fourth-quarter fiscal 2025 earnings on Nov. 24. The Zacks Consensus Estimate for earnings is pegged at $1.83 per share, suggesting growth of 10.9% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 11.5%. Keysight delivered an average earnings surprise of 4.7% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.
Applied Materials (AMAT - Free Report) is set to release fourth-quarter 2025 earnings on Nov. 13. The Zacks Consensus Estimate for earnings is pegged at $2.11 per share, implying a decline of 9.05% from the year-ago reported figure.
Applied Materials has a long-term earnings growth expectation of 8.54%. The Zacks Consensus Estimate for revenues is pegged at $6.7 billion, implying a decline of 4.84% from the year-ago reported figure. Applied Materials delivered an average earnings surprise of 5.06% in the last four reported quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Viasat Q2 Earnings Surpass Estimates, Revenues Increase Y/Y
Key Takeaways
Viasat, Inc. (VSAT - Free Report) reported mixed second-quarter fiscal 2026 results, wherein the bottom line beat the Zacks Consensus Estimate but the top line missed the same.
The company’s top line improved year over year, reflecting growth in government satcom and aviation services in the Communication Services segment. Growth in information security and cyber defense in the Defense and Advanced Technologies segment also supported the top line.
VSAT’s Bottom Line
Viasat incurred a net loss of $61.4 million, or a loss of 45 cents per share, compared with a net loss of $137.6 million, or a loss of $1.07 per share, in the prior-year quarter. The narrower loss was due to lower depreciation and amortization, selling, general, and administrative costs and a favorable service mix.
Excluding non-recurring items, Viasat reported a non-GAAP net income of $12.6 million, or 9 cents per share against a net loss of $29.4 million, or 23 cents in the prior-year period. The bottom line beat the Zacks Consensus Estimate by 20 cents.
Viasat Inc. Price, Consensus and EPS Surprise
Viasat Inc. price-consensus-eps-surprise-chart | Viasat Inc. Quote
VSAT’s Q2 Revenues
Revenues rose to $1.14 billion, up from $1.12 billion. The figure missed the consensus estimate by $8 million. Product revenues were $319.4 million, down from $323.9 million in the year-ago quarter. Net sales from Service increased to $821.5 million from $798.6 million a year ago.
Revenues from the Communication Services segment were $837 million, up from $826 million in the prior-year quarter. Growth in government satcom and aviation services was offset by a decline in maritime and U.S. fixed broadband business. However, the segment’s adjusted EBITDA improved to $337 million from $318 million.
Revenues from the Defense and Advanced Technologies (“DAT”) segment were $304 million, up 3% year over year. The uptick was primarily driven by solid traction across information security and cyber defense. Adjusted EBITDA decreased to $48 million from $57 million in the year-ago quarter.
Other Details of VSAT
In the September quarter, Viasat reported an operating income of $35.8 million against a net loss of $24.7 million in the prior-year quarter. Adjusted EBITDA was $385 million, up from $375 million in the year-ago quarter.
VSAT’s Cash Flow & Liquidity
During the second quarter of fiscal 2026, Viasat generated an operating cash flow of $282 million compared with $239 million in the prior-year period, reflecting improved operating performance and a decline in working capital largely from increases in accounts payable. As of Sept. 30, 2025, the company had $1.2 billion in cash and cash equivalents, with a net debt of $5.5 billion.
Viasat’s Fiscal 2026 Outlook
For fiscal 2026, management expects low single-digit revenue growth and flattish adjusted EBITDA year over year. Viasat anticipates the Communication Services segment’s flat revenue performance, due to low double-digit growth in aviation services, partially offset by a lower rate of declines in fixed services and other. DAT revenue growth is anticipated to be in the mid-teens, primarily driven by strong double-digit growth in both information security and cyber defense, and space and mission systems. Capital expenditure is forecasted to be approximately $1.2 billion (includes approximately $400 million for Inmarsat-related capital expenditures).
Zacks Rank & Other Stocks to Consider
Viasat carries a Zacks Rank 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release fourth-quarter fiscal 2025 earnings on Nov. 24. The Zacks Consensus Estimate for earnings is pegged at $1.83 per share, suggesting growth of 10.9% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 11.5%. Keysight delivered an average earnings surprise of 4.7% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.
Applied Materials (AMAT - Free Report) is set to release fourth-quarter 2025 earnings on Nov. 13. The Zacks Consensus Estimate for earnings is pegged at $2.11 per share, implying a decline of 9.05% from the year-ago reported figure.
Applied Materials has a long-term earnings growth expectation of 8.54%. The Zacks Consensus Estimate for revenues is pegged at $6.7 billion, implying a decline of 4.84% from the year-ago reported figure. Applied Materials delivered an average earnings surprise of 5.06% in the last four reported quarters.