Viasat 2026 Q2 Earnings Narrowed Losses and 1.7% Revenue Growth

Viasat (VSAT) reported fiscal 2026 Q2 earnings on Nov 11, 2025, with a 1.7% year-over-year revenue increase to $1.14 billion and a 57.4% reduction in net losses. The results beat Zacks’ EPS estimate but missed revenue expectations.

Revenue

Viasat’s total revenue rose to $1.14 billion, driven by growth in Communication Services ($836.65 million) and Defense and Advanced Technologies ($304.24 million). Services revenue totaled $769.82 million, while Products revenue amounted to $66.84 million. The Communication Services segment led the increase, supported by government satcom and aviation services, while the Defense segment benefited from strong traction in information security and cyber defense.

Earnings/Net Income

The company narrowed its net loss to $51.83 million ($0.45 per share) in Q2 2026, a 57.9% improvement from $121.80 million ($1.07 per share) in Q2 2025. The EPS improvement reflects lower depreciation, operating costs, and a favorable service mix.

Post-Earnings Price Action Review

Viasat’s stock surged 8.1% post-earnings to $39.96, reflecting investor confidence in narrowed losses and revenue growth. The company’s upcoming quarter is projected to deliver $0.44 EPS (+69.2% YoY), supported by a potential defense segment spin-off and JPMorgan’s upgraded $50 price target. Risks include high capital spending and project delays, which could impact cash flow. The strategy of buying VSAT on revenue beats and holding for 30 days appears favorable, though broader market conditions warrant caution.

CEO Commentary Summary

Viasat’s CEO emphasized progress in reducing losses and expanding its defense backlog, which grew 31% YoY. He highlighted the ViaSat-3 satellite launches as key catalysts for future revenue and margin expansion. Strategic priorities include accelerating satellite deployment, optimizing capital efficiency, and leveraging the defense segment’s strong backlog. The CEO expressed cautious optimism about near-term operational execution, while acknowledging risks from capital intensity and project timelines.

Guidance

For fiscal 2026, Viasat expects low single-digit revenue growth and flat adjusted EBITDA YoY. The Communication Services segment is projected to see flat revenue, with mid-teens growth in the Defense segment driven by cyber defense and space systems. Capital expenditures are forecasted at $1.2 billion, including $400 million for Inmarsat-related projects.

Additional News

1. JPMorgan Upgrade: JPMorgan raised Viasat’s rating to Overweight with a $50 price target, citing undervaluation of its defense segment and upcoming satellite launches.

2. Defense Segment Spin-Off Potential: Analysts speculate a potential separation of the Defense and Advanced Technologies segment, which could unlock value given its $1.2 billion backlog.

3. ViaSat-3 F2 Launch: The ViaSat-3 F2 satellite is scheduled for early 2026, expected to boost bandwidth and unlock new markets.