Viasat Q2 Earnings Surpass Estimates, Revenues Increase Y/Y

Viasat, Inc. VSAT reported mixed second-quarter fiscal 2026 results, wherein the bottom line beat the Zacks Consensus Estimate but the top line missed the same.

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

VSAT’s Bottom Line

Viasat incurred a net loss of $61.4 million, or a loss of 45 cents per share, compared with a net loss of $137.6 million, or a loss of $1.07 per share, in the prior-year quarter. The narrower loss was due to lower depreciation and amortization, selling, general, and administrative costs and a favorable service mix.

Excluding non-recurring items, Viasat reported a non-GAAP net income of $12.6 million, or 9 cents per share against a net loss of $29.4 million, or 23 cents in the prior-year period. The bottom line beat the Zacks Consensus Estimate by 20 cents.

VSAT’s Q2 Revenues

Revenues rose to $1.14 billion, up from $1.12 billion. The figure missed the consensus estimate by $8 million. Product revenues were $319.4 million, down from $323.9 million in the year-ago quarter. Net sales from Service increased to $821.5 million from $798.6 million a year ago.

Revenues from the Communication Services segment were $837 million, up from $826 million in the prior-year quarter. 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 $337 million from $318 million.

Revenues from the Defense and Advanced Technologies (“DAT”) segment were $304 million, up 3% year over year. The uptick was primarily driven by solid traction across information security and cyber defense. Adjusted EBITDA decreased to $48 million from $57 million in the year-ago quarter.

Other Details of VSAT

In the September quarter, Viasat reported an operating income of $35.8 million against a net loss of $24.7 million in the prior-year quarter. Adjusted EBITDA was $385 million, up from $375 million in the year-ago quarter.

VSAT’s Cash Flow & Liquidity

During the second quarter of fiscal 2026, Viasat generated an operating cash flow of $282 million compared with $239 million in the prior-year period, reflecting improved operating performance and a decline in working capital largely from increases in accounts payable. As of Sept. 30, 2025, the company had $1.2 billion in cash and cash equivalents, with a net debt of $5.5 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 the 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).

Zacks Rank & Other Stocks to Consider

Viasat carries a Zacks Rank 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Keysight Technologies, Inc. KEYS is scheduled to release fourth-quarter fiscal 2025 earnings on Nov. 24. The Zacks Consensus Estimate for earnings is pegged at $1.83 per share, suggesting growth of 10.9% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 11.5%. Keysight delivered an average earnings surprise of 4.7% in the last four reported quarters.

Workday, Inc. WDAY is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.

Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.

Applied Materials AMAT is set to release fourth-quarter 2025 earnings on Nov. 13. The Zacks Consensus Estimate for earnings is pegged at $2.11 per share, implying a decline of 9.05% from the year-ago reported figure.

Applied Materials has a long-term earnings growth expectation of 8.54%. The Zacks Consensus Estimate for revenues is pegged at $6.7 billion, implying a decline of 4.84% from the year-ago reported figure. Applied Materials delivered an average earnings surprise of 5.06% in the last four reported quarters.

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