Gilat Satellite Networks Shares Fall Nearly 13% as Q3 Revenue Misses Estimates Despite Earnings Growth

Gilat Satellite Networks Ltd. (NASDAQ:GILT) reported third-quarter 2026 adjusted earnings of $0.18 per share, exceeding analysts’ expectations of $0.14, while revenue declined 1% year-on-year to $116.2 million, below the consensus estimate of $126.54 million. Shares of the satellite networking technology company fell 12.80% in premarket trading on Tuesday following the announcement.

Revenue decreased from $117.7 million in the corresponding period of 2025, reflecting rescheduled deliveries of in-flight connectivity terminals, delays in satellite development and launches, and later-than-expected agreements in Peru.

Adjusted EBITDA Increases 13% as Defense Revenue Rises

Despite the revenue decline, Gilat reported a 13% increase in adjusted EBITDA to $17.6 million, with the adjusted EBITDA margin improving to 15% from 13% a year earlier.

Adjusted net income increased 21% year-on-year to $14.3 million.

The company’s Defense segment recorded revenue growth of 53%, contributing to its quarterly operating performance.

Chief Executive Officer Adi Sfadia commented on the results:

“These results were achieved despite weaker currency conditions and bad debt write-offs resulting from Hughes Network Systems’ Chapter 11 filing.”

The company attributed the revenue shortfall primarily to project timing and delivery schedules across several business activities.

Gilat Revises Full-Year 2026 Revenue Guidance

Gilat updated its fiscal 2026 outlook, forecasting revenue between $455 million and $475 million, representing a midpoint of $465 million.

The revised revenue forecast represents a reduction from the company’s previous expectations.

Adjusted EBITDA for the full year is expected to range from $61 million to $63 million.

The guidance reflects the company’s updated assessment of revenue recognition and delivery schedules for the remainder of 2026.

Comtech Acquisition Expected to Close by Year-End

Gilat confirmed that its pending acquisition of Comtech remains scheduled for completion by the end of 2026.

The company expects the transaction to more than double its Defense segment revenue in 2027, subject to completion and the anticipated contribution from the acquired business.

Gilat ended the third quarter with approximately $260 million in cash and cash equivalents, including around $99 million in net proceeds from convertible notes issued during the period.

The results showed higher adjusted earnings, EBITDA and Defense revenue, alongside lower consolidated revenue and a reduced full-year sales outlook. The revenue shortfall coincided with a 12.80% decline in Gilat shares during premarket trading.

Gilat Satellite Networks stock price