Back to top

Image: Bigstock

Can Rising Defense Solutions Demand Boost Viasat's Growth Prospects?

Read MoreHide Full Article

Key Takeaways

  • VSAT provides secure satellite communications, resilient networking and cybersecurity for military operations.
  • VSAT supports aircraft, naval fleets, ground forces and UAVs across complex operational environments.
  • Rising defense spending and digital connectivity needs may boost demand for Viasat's technologies.

Viasat, Inc. (VSAT - Free Report) plays a key role in the global defense industry by providing secure satellite communications, mission-critical networking and cybersecurity solutions for critical military operations. The company serves as a strategic technology partner for defense agencies and military organizations worldwide, enabling seamless connectivity across complex operational ecosystems.

In addition, Viasat offers tactical data links, encrypted networks, anti-jamming technologies and advanced communication terminals for air, land, sea and space platforms. These solutions enable real-time command-and-control, intelligence sharing, surveillance and battlefield coordination, ensuring continuous connectivity in remote or contested environments.

The company also develops advanced modems and secure networking equipment that protect sensitive military data from cyber threats and signal disruption. Its technologies support military aircraft, naval fleets, ground forces and unmanned aerial vehicles (UAVs), enhancing situational awareness and mission effectiveness. Viasat supports customers throughout the full system lifecycle, from technology development and integration to deployment, maintenance and network optimization.

As global defense spending increases and military operations become more dependent on digital connectivity, Viasat is likely to benefit from rising demand for next-generation defense communication technologies.

How Are Competitors Advancing in the Defense Sector?

Viasat faces competition from Nokia Corporation (NOK - Free Report) and Comtech Telecommunications Corp. (CMTL - Free Report) . Nokia is expanding its defense offerings with secure 4G/5G communication solutions for military use. The company is working with Lockheed Martin and the Finnish Border Guard to improve military communication and develop anti-drone technologies. Nokia is developing secure communication and advanced technologies for modern defense operations.

Comtech is strengthening its presence in the defense sector by providing communication solutions for military and government customers. The company offers satellite communication systems and secure network services to support critical operations. Comtech is focusing on reliable connectivity and secure data transmission for modern defense applications.

Viasat's Price Performance, Valuation & Estimates

Viasat shares have skyrocketed 417.8% over the past year compared with the industry’s growth of 44.1%.

Zacks Investment Research
Image Source: Zacks Investment Research

From a valuation standpoint, Viasat trades at a forward price-to-sales ratio of 2.13, below the industry tally of 5.17.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings estimates for 2027 have decreased 67.7% to 20 cents over the past 60 days, while the same for 2028 has decreased 38.8% to 41 cents.

Zacks Investment Research
Image Source: Zacks Investment Research

Viasat currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Published in