Viasat shares jump up 8% after FT report on activist effort

Viasat shares jump up 8% after FT report on activist effort

Viasat, Inc. (NASDAQ: VSAT) has seen its stock price increase by 8% following the company's announcement of a significant contract win with the U.S. government. The stock's performance comes on the heels of a report from Financial Times highlighting the company's strategic advancements and partnerships.

On July 30, 2025, Viasat announced that it had been selected by the U.S. Government to build a next-generation Ethernet Data Encryptor (EDE) solution as part of a sole-source multi-million dollar Indefinite Delivery/Indefinite Quantity (IDIQ) award [1]. This contract is expected to meet the most stringent government security standards for protecting classified data up to Top Secret / Sensitive Compartmented Information (TS/SCI) levels.

Under this award, Viasat will design and develop a new high-assurance, high-speed EDE to meet evolving government security specifications and cloud communications requirements. The company's first-generation KG-142 high-assurance, high-speed EDE has been protecting cloud and transport data networks since 2017. The new generation is expected to provide 16 times more bandwidth and an estimated 60% power savings compared to the current generation, while maintaining the same footprint.

The next-generation EDE will use Viasat's PSIAM™ technology architecture, which is the foundation of the company's vast portfolio of high-assurance encryptor products. This technology architecture uses intelligent, proven, 100% reprogrammable protection capable of evolving with customer needs through software upgrades instead of costly hardware replacements [2].

The contract win is a significant milestone for Viasat, demonstrating the company's commitment to innovation and its ability to meet the evolving security needs of the U.S. government. The contract is part of a broader trend of increased demand for high-assurance encryption to protect government data in and between cloud data centers and core transport networks.

Financial analysts have noted that the contract win is likely to boost Viasat's revenue and cash flow, contributing to the company's stock price increase. The stock's performance is also influenced by market expectations and the company's recent financial results, which showed mixed emotions with a Q4 EPS of (2c) compared to a consensus of 4c, but revenue reaching $1.15B, beyond the anticipated $1.13B [3].

In conclusion, Viasat's stock price increase is a direct response to the company's strategic advancements and the significant contract win with the U.S. government. The contract is expected to drive revenue growth and solidify Viasat's position as a leading provider of high-assurance encryption solutions.

References:
[1] https://www.nasdaq.com/press-release/viasat-selected-deliver-next-generation-encryption-us-government-cloud-data-centers
[2] https://www.marketscreener.com/news/u-s-government-selects-viasat-inc-to-deliver-next-generation-encryption-for-us-government-cloud-d-ce7c5fdfde8ff323
[3] https://www.timothysykes.com/news/viasat-inc-vsat-news-2025_06_13/