Viasat 2026 Q1 Earnings Widened Loss Amid Strong Revenue Growth

Viasat (VSAT) reported mixed results for its fiscal 2026 first quarter, marked by a 4.0% revenue increase to $1.17 billion, yet the company's losses expanded significantly. The earnings report revealed a 65.4% wider loss per share compared to the prior year.

Revenue
Viasat reported total revenue of $1.17 billion in Q1 2026, representing a 4.0% increase from $1.13 billion in the same period in 2025. The Communication Services segment led the performance with $827.37 million in revenue, driven by strong demand for satellite broadband services. Service revenues amounted to $777.20 million, while product revenues totaled $50.17 million. The Defense and Advanced Technologies segment contributed $343.68 million, with product revenues reaching $294.51 million and service revenues at $49.17 million.

Earnings/Net Income
The company's financial performance deteriorated significantly, with a loss of $0.43 per share, a 65.4% increase in the loss compared to the previous year. Net income losses widened to $47.72 million in Q1 2026, reflecting a 120.1% increase from $21.69 million in the prior year period.

Price Action
Viasat's stock demonstrated mixed short-term performance. Shares fell 2.21% on the latest trading day but surged by 54.52% over the past full trading week and 65.83% month-to-date.

Post-Earnings Price Action Review
A backtest of the strategy of buying Viasat shares following a revenue miss and holding for 30 days showed poor performance, with a loss of 18.5%. This suggests that such a strategy is not currently viable for investors.

CEO Commentary
CEO Michael J. Thawley expressed confidence in Viasat’s long-term growth trajectory, emphasizing the company’s leadership in satellite communications and its strategic expansion into international defense and government contracts. Thawley acknowledged short-term challenges, including high R&D and capital expenditures, but highlighted the strong demand for Viasat’s ViaSat-3 constellation as a key growth driver.

Guidance
For the full year 2026, Viasat projected total revenue of approximately $3.5 billion and a narrowing operating loss to below $100 million. The company expects to maintain elevated capital expenditures, reflecting ongoing investments in satellite manufacturing and network deployment. Management also emphasized continued R&D investment to support next-generation satellite and cybersecurity offerings, though earnings per share are expected to remain negative in 2026.

Additional News
Recent developments in the broader market included OpenAI's official launch of GPT-5, signaling a potential shift in the AI landscape. Additionally, the Trump-Putin meeting in Alaska sparked geopolitical speculation, with discussions on potential cooperation in the Ukraine conflict. In the automotive sector, Tesla's decision to disband its Dojo supercomputer team raised concerns about its AI development roadmap. On the corporate front, Intel’s CEO, Pat Gelsinger, was asked to resign by Trump amid ongoing U.S.-China trade tensions, while Apple experienced a strong market performance following its strategic engagement with Trump.