Viasat Q3 Earnings Surpass Estimates, Revenues Increase Y/Y

Viasat, Inc. VSAT reported mixed third-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 reported a net income of $25 million, or 18 cents per share, against a net loss of $158.4 million, or a loss of $1.23 per share, in the prior-year quarter. The growth was primarily due to higher interest income during the quarter.

Excluding non-recurring items, Viasat reported a non-GAAP net income of $110.7 million, or 79 cents per share compared to a net income of $14.7 million, or 11 cents per share, in the prior-year period. The bottom line beat the Zacks Consensus Estimate by 74 cents.

VSAT’s Q3 Revenues

Revenues rose to $1.15 billion, up from $1.12 billion. The figure missed the consensus estimate by $10 million. Product revenues were $334.2 million, up from $314.3 million in the year-ago quarter. Net sales from Service increased to $822.8 million from $809.4 million a year ago.

Revenues from the Communication Services segment were $825 million, up from $820 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. The segment’s adjusted EBITDA decreased to $319 million from $330 million.

Revenues from the Defense and Advanced Technologies (“DAT”) segment were $332 million, up 9% year over year. The uptick was primarily driven by solid traction across information security and cyber defense. Adjusted EBITDA increased to $68 million from $64 million in the year-ago quarter.

Other Details of VSAT

In the December quarter, Viasat reported an operating income of $26.3 million compared to a net income of $21.2 million in the prior-year quarter. Adjusted EBITDA was $387 million, down from $393 million in the year-ago quarter.

VSAT’s Cash Flow & Liquidity

During the third quarter of fiscal 2026, Viasat generated an operating cash flow of $307 million compared with $219 million in the prior-year period, reflecting improved operating performance and a decline in working capital largely from increases in accounts payable. As of Dec. 31, 2025, the company had $1.35 billion in cash and cash equivalents, with a net debt of $5.1 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 between $1 and $1.1 billion (includes approximately $400 million for Inmarsat-related capital expenditures).

Zacks Rank

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

Upcoming Releases

Arista Networks Inc. ANET is scheduled to release fourth-quarter 2025 earnings on Feb. 12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting growth of 15.38% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 20.08%. The company delivered an average earnings surprise of 10.17% in the last four reported quarters.

Lyft, Inc. LYFT is scheduled to release fourth-quarter 2025 earnings on Feb. 10. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, suggesting growth of 6.67% from the year-ago reported figure.

Lyft has a long-term earnings growth expectation of 24.41%. The company delivered an average earnings surprise of 1.17% in the last four reported quarters.

Akamai Technologies, Inc. AKAM is slated to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.42% growth from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 5.96%. The company delivered an average earnings surprise of 10.46% in the last four reported quarters.

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