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Viasat Q1 Earnings Surpass Estimates, Revenues Increase Y/Y

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Key Takeaways

  • {\"0\":\"Viasat\'s DAT segment revenues rose 15% to $344M, led by cyber defense and space systems growth.\",\"1\":\"Operating cash flow surged to $258M from $151M, aided by lower working capital requirements.\",\"2\":\"Weaknesses in tactical networking, maritime and U.S. fixed broadband businesses hindered revenue growth.\"}

Viasat, Inc. (VSAT - Free Report) reported strong first-quarter fiscal 2026 results, wherein both top and bottom lines beat the respective Zacks Consensus Estimate.

The company’s top line improved year over year, reflecting growth in government satcom and aviation services in Communication Services segment. Growth in information security and cyber defense, space and mission systems in the Defense and Advanced Technologies segment also supported the top line.

VSAT’s Bottom Line

Viasat incurred a net loss of $56.4 million, or a loss of 43 cents per share, compared with a net loss of $32.9 million, or a loss of 26 cents, in the prior-year quarter. The wider loss was due to higher income tax provisions and an increase in depreciation and amortization.

Excluding non-recurring items, Viasat reported a non-GAAP net income of $23.1 million, or 17 cents per share, compared with a net income of $39 million, or 30 cents, in the prior-year period. The bottom line beat the Zacks Consensus Estimate by 22 cents.

Viasat Inc. Price, Consensus and EPS Surprise

Viasat Inc. Price, Consensus and EPS Surprise

Viasat Inc. price-consensus-eps-surprise-chart | Viasat Inc. Quote

VSAT’s Q1 Revenues

Revenues rose to $1.17 billion, up from $1.12 billion. The figure beat the consensus estimate by $42 million. Product revenues were $344.7 million, up from $305.7 million in the year-ago quarter. Net sales from Service increased to $826.4 million from $820.7 million a year ago.

Revenues from the Communication Services segment were $827 million, matching the prior-year quarter’s figure. 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 $322 million from $308 million.

Revenues from the Defense and Advanced Technologies (“DAT”) segment were $344 million, up 15% year over year. The uptick was primarily driven by solid traction across information security and cyber defense, space and mission systems. Adjusted EBITDA decreased to $87 million from $96 million in the year-ago quarter, due to lower IP licensing and royalty-based revenues in tactical networking products and Advanced Technologies and Other.

Other Details of VSAT

In the June quarter, Viasat reported an operating income of $46.7 million compared with $59.7 million in the prior-year quarter. Adjusted EBITDA was $408 million, up from $404 million in the year-ago quarter.

VSAT’s Cash Flow & Liquidity

During the first quarter of fiscal 2026, Viasat generated an operating cash flow of $258 million compared with $151 million in the prior-year period, reflecting improved operating performance and a decline in working capital largely from increases in accounts payable and other accrued liabilities. As of June 30, 2025, the company had $1.2 billion in cash and cash equivalents, with a net debt of $5.6 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 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).

VSAT’s Zacks Rank

Viasat 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

Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying growth of 17.24% from the year-ago reported figure. Pinterest has a long-term earnings growth expectation of 33%. PINS delivered an average earnings surprise of 0.53% in the last four reported quarters.

Pinterest is witnessing greater engagement on the platform from its existing user base. The company’s focus on improving operational rigor and incorporating sophisticated AI models to enhance relevancy and personalization is likely to bring long-term benefits.

Motorola Solutions, Inc. (MSI - Free Report) is scheduled to release second-quarter 2025 earnings on Aug. 8. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share. Motorola delivered an earnings surprise of 7.15% in the trailing four quarters.

The company expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. Motorola intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.

Keysight Technologies, Inc (KEYS - Free Report) is scheduled to release second-quarter 2025 earnings on Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $1.67 per share. Keysight delivered an earnings surprise of 8.19% in the trailing four quarters.

The company is gaining traction from strong industry-wide growth backed by the solid adoption of its electronic design and test solutions. Growing investment in advanced nodes and packaging, high-bandwidth memory and silicon photonics induced by high AI-performance requirements is driving Keysight’s growth in the semiconductor vertical.

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