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Viasat Q4 Earnings Miss Estimates Despite Y/Y Revenue Increase
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Key Takeaways
VSAT's Q4 FY26 revenues rose to $1.17B but missed the $1.2B consensus estimate.
VSAT swung to $58.8M net income, but a $3.2M non-GAAP net loss missed by 27 cents.
VSAT's backlog rose 15% to $4.07B, with FY27 anticipating a mid-single-digit revenue growth.
Viasat, Inc. (VSAT - Free Report) reported relatively lackluster fourth-quarter fiscal 2026 results, with both top and bottom lines missing the Zacks Consensus Estimate.
The company’s year-over-year revenue growth was driven by higher demand for satellite broadband and communication services, expanding government and defense contracts, and continued investments in advanced satellite and direct-to-device connectivity solutions. However, higher operating costs and ongoing investments in satellite infrastructure hurt its bottom line.
Net Income
Viasat reported a net income of $58.8 million, or 41 cents per share, against a net loss of $246.1 million, or a loss of $1.89 per share, in the prior-year quarter. The growth was primarily due to lower selling, general and administrative expenses and higher other income during the quarter.
Excluding non-recurring items, Viasat reported a non-GAAP net loss of $3.2 million, or a loss of 2 cents per share, compared to a net loss of $3 million, or a loss of 2 cents per share, in the prior-year period. The bottom line missed the Zacks Consensus Estimate by 27 cents.
For 2026, the company reported a net loss of $34.1 million or a loss of 25 cents per share compared with a net loss of $575 million or a loss of $4.48 per share in 2025. Non-GAAP net income for 2026 was $143.3 million or $1.03 per share compared with $21.1 million or 16 cents per share in 2025.
Revenues rose to $1.17 billion, up from $1.15 billion. The figure missed the consensus estimate of $1.2 billion. Product revenues were $367.6 million, up from $349.7 million in the year-ago quarter. Net sales from Service increased to $803.7 million from $797.4 million a year ago. For 2026, revenues increased to $4.64 billion from $4.52 billion in 2025.
Revenues from the Communication Services segment were $810.3 million, down from $825 million in the prior-year quarter. The segment’s adjusted EBITDA decreased to $287.3 million from $306.2 million.
Revenues from the Defense and Advanced Technologies (DAT) segment were $361 million, up 12% year over year. The growth is primarily driven by strong demand for encryption devices, next-generation cybersecurity and defense programs, and large antenna production for space-based Earth Observation and intelligence, Surveillance, and Reconnaissance missions. Adjusted EBITDA increased to $82.5 million from $68.6 million in the year-ago quarter.
Other Details
In the March quarter, Viasat reported an operating loss of $0.62 million compared to an operating loss of $153.8 million in the prior-year quarter. Adjusted EBITDA was $369.9 million, down from $374.8 million in the year-ago quarter. The net contract awards increased to $1.28 billion from $1.17 billion a year ago, while the backlog increased 15% year over year to $4.07 billion.
Cash Flow & Liquidity
During the fourth quarter of fiscal 2026, Viasat generated an operating cash flow of $322.3 million compared with $298.4 million in the prior-year period. For 2026, the company generated $1.17 billion of cash from operating activities (excluding $420 million Ligado lump sum payment) compared with $908.2 million in 2025. As of March 31, 2026, the company had $1.75 billion in cash and cash equivalents, with a net debt of $4.84 billion compared with respective tallies of $1.61 billion and $5.59 billion a year ago.
Outlook
For fiscal 2027, management expects mid-single-digit revenue growth and slightly flat to up adjusted EBITDA year over year. Viasat anticipates the Communication Services segment’s low single-digit year-over-year revenue performance, due to continued growth in aviation services, offset by a lower rate of decline in FS&O. DAT revenue growth is anticipated to be in the mid-teens, primarily driven by strong growth in information security and cyber defense, as well as space and mission systems and tactical networking. Capital expenditure is forecasted to be between $950 million and $1 billion (includes approximately $325 million for Inmarsat-related capital expenditures). The company’s operating cash flow is expected to be flat year over year, and the free cash flow is anticipated to be approximately $180 million (excludes the benefit of the Ligado lump sum payments, as they are non-recurring).
In the last reported quarter, it delivered an earnings surprise of 20.61%. Silicon Motion is benefiting from rising demand for NAND flash controllers used in smartphones, PCs, and data center storage devices. The growing adoption of AI applications and high-capacity SSDs is also expected to support demand for its advanced storage solutions and long-term growth prospects.
Celestica Inc. (CLS - Free Report) carries a Zacks Rank #2 (Buy) at present. It delivered an earnings surprise of 3.85% in the last reported quarter.
The company is experiencing strong momentum from growing demand for AI data center infrastructure, cloud networking equipment, and advanced hardware solutions. Its expanding hyperscaler customer base and focus on high-performance computing are likely to drive long-term growth.
Monolithic Power Systems, Inc. (MPWR - Free Report) carries a Zacks Rank #2 at present. It delivered an earnings surprise of 4.29% in the last reported quarter.
Monolithic Power continues to gain from strong demand for power management solutions across AI data centers, automotive, industrial, and cloud computing markets. Its expanding product portfolio, growing adoption of high-performance power chips, and focus on innovation support steady growth and strengthen its long-term market position.
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Viasat Q4 Earnings Miss Estimates Despite Y/Y Revenue Increase
Key Takeaways
Viasat, Inc. (VSAT - Free Report) reported relatively lackluster fourth-quarter fiscal 2026 results, with both top and bottom lines missing the Zacks Consensus Estimate.
The company’s year-over-year revenue growth was driven by higher demand for satellite broadband and communication services, expanding government and defense contracts, and continued investments in advanced satellite and direct-to-device connectivity solutions. However, higher operating costs and ongoing investments in satellite infrastructure hurt its bottom line.
Net Income
Viasat reported a net income of $58.8 million, or 41 cents per share, against a net loss of $246.1 million, or a loss of $1.89 per share, in the prior-year quarter. The growth was primarily due to lower selling, general and administrative expenses and higher other income during the quarter.
Excluding non-recurring items, Viasat reported a non-GAAP net loss of $3.2 million, or a loss of 2 cents per share, compared to a net loss of $3 million, or a loss of 2 cents per share, in the prior-year period. The bottom line missed the Zacks Consensus Estimate by 27 cents.
For 2026, the company reported a net loss of $34.1 million or a loss of 25 cents per share compared with a net loss of $575 million or a loss of $4.48 per share in 2025. Non-GAAP net income for 2026 was $143.3 million or $1.03 per share compared with $21.1 million or 16 cents per share in 2025.
Viasat Inc. Price, Consensus and EPS Surprise
Viasat Inc. price-consensus-eps-surprise-chart | Viasat Inc. Quote
Revenues
Revenues rose to $1.17 billion, up from $1.15 billion. The figure missed the consensus estimate of $1.2 billion. Product revenues were $367.6 million, up from $349.7 million in the year-ago quarter. Net sales from Service increased to $803.7 million from $797.4 million a year ago. For 2026, revenues increased to $4.64 billion from $4.52 billion in 2025.
Revenues from the Communication Services segment were $810.3 million, down from $825 million in the prior-year quarter. The segment’s adjusted EBITDA decreased to $287.3 million from $306.2 million.
Revenues from the Defense and Advanced Technologies (DAT) segment were $361 million, up 12% year over year. The growth is primarily driven by strong demand for encryption devices, next-generation cybersecurity and defense programs, and large antenna production for space-based Earth Observation and intelligence, Surveillance, and Reconnaissance missions. Adjusted EBITDA increased to $82.5 million from $68.6 million in the year-ago quarter.
Other Details
In the March quarter, Viasat reported an operating loss of $0.62 million compared to an operating loss of $153.8 million in the prior-year quarter. Adjusted EBITDA was $369.9 million, down from $374.8 million in the year-ago quarter. The net contract awards increased to $1.28 billion from $1.17 billion a year ago, while the backlog increased 15% year over year to $4.07 billion.
Cash Flow & Liquidity
During the fourth quarter of fiscal 2026, Viasat generated an operating cash flow of $322.3 million compared with $298.4 million in the prior-year period. For 2026, the company generated $1.17 billion of cash from operating activities (excluding $420 million Ligado lump sum payment) compared with $908.2 million in 2025. As of March 31, 2026, the company had $1.75 billion in cash and cash equivalents, with a net debt of $4.84 billion compared with respective tallies of $1.61 billion and $5.59 billion a year ago.
Outlook
For fiscal 2027, management expects mid-single-digit revenue growth and slightly flat to up adjusted EBITDA year over year. Viasat anticipates the Communication Services segment’s low single-digit year-over-year revenue performance, due to continued growth in aviation services, offset by a lower rate of decline in FS&O. DAT revenue growth is anticipated to be in the mid-teens, primarily driven by strong growth in information security and cyber defense, as well as space and mission systems and tactical networking. Capital expenditure is forecasted to be between $950 million and $1 billion (includes approximately $325 million for Inmarsat-related capital expenditures). The company’s operating cash flow is expected to be flat year over year, and the free cash flow is anticipated to be approximately $180 million (excludes the benefit of the Ligado lump sum payments, as they are non-recurring).
VSAT’s Zacks Rank
Viasat currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Silicon Motion Technology Corporation (SIMO - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last reported quarter, it delivered an earnings surprise of 20.61%. Silicon Motion is benefiting from rising demand for NAND flash controllers used in smartphones, PCs, and data center storage devices. The growing adoption of AI applications and high-capacity SSDs is also expected to support demand for its advanced storage solutions and long-term growth prospects.
Celestica Inc. (CLS - Free Report) carries a Zacks Rank #2 (Buy) at present. It delivered an earnings surprise of 3.85% in the last reported quarter.
The company is experiencing strong momentum from growing demand for AI data center infrastructure, cloud networking equipment, and advanced hardware solutions. Its expanding hyperscaler customer base and focus on high-performance computing are likely to drive long-term growth.
Monolithic Power Systems, Inc. (MPWR - Free Report) carries a Zacks Rank #2 at present. It delivered an earnings surprise of 4.29% in the last reported quarter.
Monolithic Power continues to gain from strong demand for power management solutions across AI data centers, automotive, industrial, and cloud computing markets. Its expanding product portfolio, growing adoption of high-performance power chips, and focus on innovation support steady growth and strengthen its long-term market position.