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ASTS Q3 Earnings Miss Estimates as Higher Costs Offset Revenue Growth
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Key Takeaways
AST SpaceMobile's Q3 2026 revenues jumped 187.1% to $42.32M, but earnings and sales missed estimates.
ASTS' operating expenses surged 123.5% to $211.03M amid satellite manufacturing and network investments.
ASTS targets 45 satellites in orbit by mid-2027 and reaffirmed its $150-$200M revenue outlook.
AST SpaceMobile, Inc. (ASTS - Free Report) reported lackluster third-quarter 2026 results, with both earnings and revenues missing the Zacks Consensus Estimate. The company reported a loss of 44 cents per share, wider than the consensus estimate of a loss of 41 cents, representing a negative surprise of 7.3%. However, the loss narrowed from 45 cents per share in the year-ago quarter.
Quarterly revenues surged 187.1% year over year to $42.32 million but missed the consensus estimate of $44.47 million by 4.8%. Growth was driven by commercial gateway deliveries and U.S. government contract milestones. However, elevated operating expenses continued to pressure profitability.
ASTS Sees Robust Growth Across Revenue Streams
Product revenues increased 165.6% year over year to $20.57 million from $7.75 million in the prior-year quarter. Growth was primarily driven by commercial gateway equipment deliveries to mobile network operator partners as the company expanded its ground infrastructure.
Service revenues surged 211% to $21.75 million from $6.99 million a year ago. The increase reflected progress in U.S. government programs and the achievement of contractual milestones. The company continues to benefit from growing demand for its space-based communication and sensing capabilities.
AST SpaceMobile, Inc. Price, Consensus and EPS Surprise
Total operating expenses increased 123.5% year over year to $211.03 million from $94.42 million. Engineering services costs surged 134.6% to $95.79 million, reflecting investments in satellite manufacturing, workforce expansion and network development.
General and administrative expenses increased 86.8% to $55.71 million. Research and development expenses rose to $9.09 million from $5.53 million. Depreciation and amortization expenses increased to $25.08 million from $12.72 million.
Adjusted operating expenses were $133.6 million, up from $119.1 million in the preceding quarter. Excluding adjusted cost of revenues, adjusted operating expenses totaled $109.4 million, within management's previously guided range of $105 million to $115 million.
ASTS Advances Satellite Manufacturing and Deployment
AST SpaceMobile accelerated its satellite manufacturing roadmap by advancing next-generation application-specific integrated circuit (ASIC) integration to BlueBird 34 from the originally planned BlueBird 50. The upgraded technology is expected to deliver a 10-fold improvement in processing bandwidth compared with its existing Block 1 satellites.
The company is manufacturing satellites through BlueBird 51 at its Texas facilities. Two factories are operating full shifts, supporting management's target of producing six ASIC-enabled satellites monthly by December 2026.
BlueBirds 14, 15 and 16 have been shipped to Cape Canaveral, while additional satellite shipments are planned through January 2027. Management targets approximately 45 BlueBird satellites in orbit by mid-2027, with launch agreements covering more than 100 satellites for deployment during 2027 and 2028.
AST SpaceMobile Expands Commercial and Government Reach
The company expects to activate intermittent nationwide satellite broadband coverage in the United States and other key markets before the end of 2026. Initial rollout markets include Canada, Japan, Saudi Arabia and the United Kingdom.
AST SpaceMobile has agreements with more than 60 mobile network operators representing over three billion subscribers globally. It also successfully validated satellite beam handovers between terrestrial and space-based cellular networks with AT&T, marking an important step toward commercial service deployment.
Government opportunities are expanding. The company secured an approximately $100 million U.S. Space Force contract for advanced space-based sensing capabilities. It also announced approximately $1 billion in non-dilutive Japanese government funding to support mid-band satellite manufacturing and launches.
ASTS Maintains Strong Liquidity Amid Heavy Investments
As of Sept. 30, 2026, AST SpaceMobile held approximately $3.23 billion in cash, cash equivalents and restricted cash. Long-term debt, excluding the current portion, stood at $4.08 billion compared with $2.21 billion at the end of 2025.
Capital expenditures totaled approximately $310 million during the third quarter, down from approximately $610 million in the preceding quarter. The lower spending primarily reflected timing-related shifts in launch payments.
The company also announced Blacklift, its planned reusable rocket capable of carrying up to five BlueBird satellites per launch. Initial launches are targeted for late 2028, potentially providing greater control over satellite deployment schedules.
AST SpaceMobile Reaffirms 2026 Revenue Outlook
Management reiterated its full-year 2026 revenue guidance of $150 million to $200 million, with potential upside from recently signed contracts. Revenue generation is expected to benefit from gateway deliveries, government contract milestones, consulting services and software licensing.
For the fourth quarter of 2026, AST SpaceMobile expects adjusted operating expenses, excluding adjusted cost of revenues, between $130 million and $140 million. Capital expenditures are projected between $400 million and $500 million, reflecting continued satellite production and launch-related investments.
Cisco Systems, Inc. (CSCO - Free Report) is scheduled to release first-quarter fiscal 2027 earnings on Nov. 12. The Zacks Consensus Estimate for earnings is pegged at $1.33 per share, suggesting growth of 33% from the year-ago reported figure.
Cisco has a long-term earnings growth expectation of 10.88%. The company delivered an average earnings surprise of 2.55% in the last four reported quarters.
NVIDIA Corporation (NVDA - Free Report) is set to release third-quarter fiscal 2027 earnings on Nov. 17. The Zacks Consensus Estimate for earnings is pegged at $2.49 per share, implying growth of 100.8% from the year-ago reported figure.
NVIDIA has a long-term earnings growth expectation of 14%. The company delivered an average earnings surprise of 5.82% in the last four reported quarters.
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release fourth-quarter fiscal 2026 earnings on Nov. 19. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, suggesting growth of 75.92% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 30.74%. The company delivered an average earnings surprise of 15.07% in the last four reported quarters.
View the Zacks #1 Rank List
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ASTS Q3 Earnings Miss Estimates as Higher Costs Offset Revenue Growth
Key Takeaways
AST SpaceMobile, Inc. (ASTS - Free Report) reported lackluster third-quarter 2026 results, with both earnings and revenues missing the Zacks Consensus Estimate. The company reported a loss of 44 cents per share, wider than the consensus estimate of a loss of 41 cents, representing a negative surprise of 7.3%. However, the loss narrowed from 45 cents per share in the year-ago quarter.
Quarterly revenues surged 187.1% year over year to $42.32 million but missed the consensus estimate of $44.47 million by 4.8%. Growth was driven by commercial gateway deliveries and U.S. government contract milestones. However, elevated operating expenses continued to pressure profitability.
ASTS Sees Robust Growth Across Revenue Streams
Product revenues increased 165.6% year over year to $20.57 million from $7.75 million in the prior-year quarter. Growth was primarily driven by commercial gateway equipment deliveries to mobile network operator partners as the company expanded its ground infrastructure.
Service revenues surged 211% to $21.75 million from $6.99 million a year ago. The increase reflected progress in U.S. government programs and the achievement of contractual milestones. The company continues to benefit from growing demand for its space-based communication and sensing capabilities.
AST SpaceMobile, Inc. Price, Consensus and EPS Surprise
AST SpaceMobile, Inc. price-consensus-eps-surprise-chart | AST SpaceMobile, Inc. Quote
AST SpaceMobile's Operating Costs Remain Elevated
Total operating expenses increased 123.5% year over year to $211.03 million from $94.42 million. Engineering services costs surged 134.6% to $95.79 million, reflecting investments in satellite manufacturing, workforce expansion and network development.
General and administrative expenses increased 86.8% to $55.71 million. Research and development expenses rose to $9.09 million from $5.53 million. Depreciation and amortization expenses increased to $25.08 million from $12.72 million.
Adjusted operating expenses were $133.6 million, up from $119.1 million in the preceding quarter. Excluding adjusted cost of revenues, adjusted operating expenses totaled $109.4 million, within management's previously guided range of $105 million to $115 million.
ASTS Advances Satellite Manufacturing and Deployment
AST SpaceMobile accelerated its satellite manufacturing roadmap by advancing next-generation application-specific integrated circuit (ASIC) integration to BlueBird 34 from the originally planned BlueBird 50. The upgraded technology is expected to deliver a 10-fold improvement in processing bandwidth compared with its existing Block 1 satellites.
The company is manufacturing satellites through BlueBird 51 at its Texas facilities. Two factories are operating full shifts, supporting management's target of producing six ASIC-enabled satellites monthly by December 2026.
BlueBirds 14, 15 and 16 have been shipped to Cape Canaveral, while additional satellite shipments are planned through January 2027. Management targets approximately 45 BlueBird satellites in orbit by mid-2027, with launch agreements covering more than 100 satellites for deployment during 2027 and 2028.
AST SpaceMobile Expands Commercial and Government Reach
The company expects to activate intermittent nationwide satellite broadband coverage in the United States and other key markets before the end of 2026. Initial rollout markets include Canada, Japan, Saudi Arabia and the United Kingdom.
AST SpaceMobile has agreements with more than 60 mobile network operators representing over three billion subscribers globally. It also successfully validated satellite beam handovers between terrestrial and space-based cellular networks with AT&T, marking an important step toward commercial service deployment.
Government opportunities are expanding. The company secured an approximately $100 million U.S. Space Force contract for advanced space-based sensing capabilities. It also announced approximately $1 billion in non-dilutive Japanese government funding to support mid-band satellite manufacturing and launches.
ASTS Maintains Strong Liquidity Amid Heavy Investments
As of Sept. 30, 2026, AST SpaceMobile held approximately $3.23 billion in cash, cash equivalents and restricted cash. Long-term debt, excluding the current portion, stood at $4.08 billion compared with $2.21 billion at the end of 2025.
Capital expenditures totaled approximately $310 million during the third quarter, down from approximately $610 million in the preceding quarter. The lower spending primarily reflected timing-related shifts in launch payments.
The company also announced Blacklift, its planned reusable rocket capable of carrying up to five BlueBird satellites per launch. Initial launches are targeted for late 2028, potentially providing greater control over satellite deployment schedules.
AST SpaceMobile Reaffirms 2026 Revenue Outlook
Management reiterated its full-year 2026 revenue guidance of $150 million to $200 million, with potential upside from recently signed contracts. Revenue generation is expected to benefit from gateway deliveries, government contract milestones, consulting services and software licensing.
For the fourth quarter of 2026, AST SpaceMobile expects adjusted operating expenses, excluding adjusted cost of revenues, between $130 million and $140 million. Capital expenditures are projected between $400 million and $500 million, reflecting continued satellite production and launch-related investments.
Zacks Rank
AST SpaceMobile currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Cisco Systems, Inc. (CSCO - Free Report) is scheduled to release first-quarter fiscal 2027 earnings on Nov. 12. The Zacks Consensus Estimate for earnings is pegged at $1.33 per share, suggesting growth of 33% from the year-ago reported figure.
Cisco has a long-term earnings growth expectation of 10.88%. The company delivered an average earnings surprise of 2.55% in the last four reported quarters.
NVIDIA Corporation (NVDA - Free Report) is set to release third-quarter fiscal 2027 earnings on Nov. 17. The Zacks Consensus Estimate for earnings is pegged at $2.49 per share, implying growth of 100.8% from the year-ago reported figure.
NVIDIA has a long-term earnings growth expectation of 14%. The company delivered an average earnings surprise of 5.82% in the last four reported quarters.
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release fourth-quarter fiscal 2026 earnings on Nov. 19. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, suggesting growth of 75.92% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 30.74%. The company delivered an average earnings surprise of 15.07% in the last four reported quarters.