Viasat (VSAT) reported a loss of -0.32 per share for the quarter ended Sept. 30, 2026, against an analyst estimate of -0.42, while revenue of $1.18B came in slightly below the $1.20B estimate. The split matters because the company's defense business is growing while its consumer, maritime and aviation connectivity businesses are under pressure. Figures are current as of Nov. 6, 2026, the date of the latest quote, and cover the quarter ended Sept. 30, 2026, which Stock Expert AI's data provider labels Q2 FY2026.
Key facts
- Nov. 5, 2026: Viasat reported EPS of -0.32 against an estimate of -0.42 (difference +$0.10, 23.9%). Revenue was $1.18B against an estimate of $1.20B (difference -$21.8M, -1.8%).
- Quarter ended Sept. 30, 2026: Revenue rose 3.4% from the year-ago quarter. Operating income was $7.1M and net income was -$128.7M.
- Nov. 6, 2026: The shares closed the latest quote at 63.95 USD, up 7.70%. The 52-week range is 29.13-93.03 USD.
- Balance sheet, Sept. 30, 2026: Cash and short-term investments were $1.76B, total debt $6.87B and net debt $5.11B.
- Next earnings date: Feb. 4, 2027. The EPS estimate is -0.15 and the revenue estimate is $1.23B.
| Metric | Quarter ended Sept. 30, 2026 | Year-ago quarter (Sept. 30, 2025) |
|---|---|---|
| Revenue | $1.18B | $1.14B |
| Operating income | $7.1M | $35.8M |
| Net income | -$128.7M | -$61.4M |
| Product revenue | $359.4M | $319.4M |
| Service revenue | $820.6M | $821.5M |
The theme: satellite companies leaning on defense
Satellite operators have long sold connectivity to consumers, airlines and shipping companies. That business needs expensive satellites, so it eats cash for years before it pays back. Defense and government work is different: governments pay for secure networks, cyber tools and battlefield communications under contracts. Viasat reports this as Defense and Advanced Technologies, or DAT.
This quarter shows the shift. Product revenue, which includes hardware and defense systems, was $359.4M, higher than a year earlier. Service revenue, which includes connectivity subscriptions, was $820.6M, about flat against the year-ago quarter's $821.5M.
What happened
According to the earnings call on Nov. 5, 2026, the two halves of Viasat moved in opposite directions.
Defense grew. Management said DAT revenue grew strongly, led by cybersecurity and tactical networking. Chief Financial Officer Garrett Chase said: "This quarter's story is straightforward with communication services facing near-term pressure while momentum across Defense and Advanced Technologies accelerates."
Connectivity weakened. Management said fixed services, which include U.S. home broadband, fell on subscriber losses. Maritime revenue fell because fewer vessels were in service. Aviation revenue grew in the quarter, but management now expects it to decline in the next fiscal year from this year's level. Chase said recent airline announcements "will ultimately affect 15% to 20% of our aviation revenue," and the in-flight connectivity backlog reflected "removals from backlog based on recent customer announcements." Management said the effect would arrive over time rather than abruptly.
Costs rose. The net loss was larger than a year earlier. Chase said the decline was "primarily related to an increased provision for income taxes, higher R&D and higher stock-based compensation expense," and also cited more depreciation and interest as the ViaSat-3 satellites entered service. Management also said the sale of its Navarino business removed some earnings. Operating income of $7.1M was lower than the $35.8M a year earlier, even as revenue rose.
Chairman and CEO Mark Dankberg said: "We're entering a period of very significant growth in new contract awards and revenue, lower capital intensity, sustained free cash flow and somewhat greater financial flexibility." He also said: "We believe that capital-intensive ViaSat-3 phase is behind us."
For the current fiscal year, management guided to mid-single-digit total revenue growth, roughly flat adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), flat Communication Services revenue and positive free cash flow above a stated floor. Free cash flow is cash from operations minus spending on equipment and satellites. Management also said the second half of the fiscal year should show "meaningful acceleration."
Why it matters for investors
The five-quarter trend is mixed. Operating margin, the share of revenue left after operating costs, stayed thin:
| Quarter ended | Revenue | Operating margin | Net income |
|---|---|---|---|
| Sept. 30, 2025 | $1.14B | 3.1% | -$61.4M |
| Dec. 31, 2025 | $1.16B | 2.3% | $25.0M |
| Mar. 31, 2026 | $1.17B | -0.1% | $58.8M |
| June 30, 2026 | $1.16B | 4.1% | -$51.7M |
| Sept. 30, 2026 | $1.18B | 0.6% | -$128.7M |
Revenue was roughly flat to slightly higher over the five quarters, and profit has not followed. Operating cash flow was $282.2M, $726.9M, $322.3M, $260.6M and $285.0M across the same five quarters, oldest first. The data provider also shows a gross margin of 55.4% for the latest quarter, against 35.7% in the prior one. That jump looks like a change in how costs are classified rather than a real improvement, since operating margin did not rise with it. We treat it with caution.
Valuation is hard to read. Over the trailing 12 months, the price-to-earnings ratio is 304.52, which is distorted by near-zero profit. Price/sales is 1.89 and EV/EBITDA (enterprise value, meaning market cap plus net debt, relative to EBITDA) is 9.23. The trailing net margin is -2.1% and debt/equity is 1.52. Among peers, AST SpaceMobile (market cap $13.20B) has a net margin of -536.7%. Globalstar (market cap $10.92B) has a net margin of -26.6%. Gogo (market cap $526.4M) has a net margin of -0.2%. Gilat Satellite Networks (market cap $534.3M) has a P/E of 15.62 and a net margin of 6.2%. Viasat's market cap is $8.81B. Its loss is smaller than most large peers', but it carries far more debt than its cash balance covers.
Analysts lean positive but are split. Of 20 ratings, 8 are buy, 8 are hold and 4 are sell, and the consensus label is "Buy." Analyst price targets average 97.29 USD, with a median of 97.00 USD, a high of 140.00 USD and a low of 49.00 USD. The latest quote of 63.95 USD is below the average target. Analysts' revenue estimate for the quarter ending June 30, 2028 is $1.38B, with an EPS estimate of 0.12 from 2 analysts.
Stock Expert AI's MoonshotScore is 30.6, rated Weak. Its sector-relative pillars are:
- Valuation: 75
- Momentum: 79
- Growth: 63
- Quality: 50
- Safety: 17
What could go wrong
- Debt: Total debt of $6.87B is large next to cash of $1.76B.
- Aviation: Management expects aviation revenue to decline in the next fiscal year, and the airline announcements will ultimately affect 15% to 20% of aviation revenue.
- Competition: Management called the U.S. residential broadband market "volatile" and "contested."
- Costs: Higher taxes, research spending, depreciation, interest and stock pay are weighing on the net result.
- Insiders: Among recent Form 4 filings in the last 90 days, there were 0 open-market purchases and 11 sales. Sales alone do not show an insider's view, but there is no buying to offset them.
- Uncertainty: A strategic review is ongoing with no outcome set. Management said its long-range plan, prepared each December, will bring these factors together.
What to watch next
- Whether defense awards turn into revenue, as management said they would in the second half of the fiscal year.
- The long-range plan, which management said is presented to the Board every December. Outlook details are expected later, as management said it typically discusses each fiscal year near its start.
- Fixed broadband trends. Management said this headwind is easing.
- Progress on Equatys, a planned shared low-earth-orbit satellite company with Space42. Regulatory approvals are pending and management gave no launch timing.
- The next earnings report, expected Feb. 4, 2027.
Frequently asked questions
Q: Did Viasat beat earnings estimates in the quarter ended Sept. 30, 2026?
On earnings per share, yes. Viasat reported -0.32 against an analyst estimate of -0.42. Revenue of $1.18B was below the $1.20B estimate.
Q: Why is Viasat's defense business important?
According to the Nov. 5, 2026 call, defense and advanced technologies revenue grew in the quarter ended Sept. 30, 2026, led by cybersecurity and tactical networking. Management guided that this segment would outgrow the company overall in the current fiscal year, offsetting weakness in broadband and maritime.
Q: What do analysts expect for Viasat's stock price?
Analyst price targets averaged 97.29 USD as of Nov. 6, 2026, with a low of 49.00 USD and a high of 140.00 USD. The shares were at 63.95 USD. Targets are analyst opinions, not our forecast.
What our data could not verify
The data provider labels the quarter Q2 FY2026, while management's call called it the second quarter of fiscal 2027. We kept the provider's period dates. The provider's reported free cash flow and capital spending figures for the latest two quarters look inconsistent with each other, so we left them out. Its discounted cash flow model value is negative and not meaningful for a company with this much debt. We could not independently verify management's statements about guidance, awards or Equatys.
Sources: Stock Expert AI data (FMP financial data, MoonshotScore V2, analyst consensus, insider filings); company statements from the Nov. 5, 2026 earnings call transcript. Third-party headlines were used for context only.
This is educational content, not investment advice. Past performance does not guarantee future results.