Viasat (VSAT) Rallies 13.93% on Defense Contracts, Strategic Tech Push Ahead of October 2025 Launch

Viasat (VSAT) surged 13.93% intraday, hitting its highest level since October 2025, as optimism around its strategic advancements and defense contracts drove investor enthusiasm. The stock’s rally reflects confidence in the company’s ability to capitalize on its satellite infrastructure and secure government contracts.

Central to the stock’s momentum is the impending launch of the ViaSat-3 F2 satellite, set for October 2025. This project aims to double Viasat’s bandwidth capacity and introduce dynamic beam-forming technology, enhancing network efficiency and latency. The satellite’s deployment is seen as a critical step in strengthening the company’s competitive edge in high-speed broadband and defense communications, particularly in maritime, aviation, and military sectors.

Viasat’s Defense and Advanced Technologies division has also bolstered its profile through contracts like the U.S. Space Force’s Protected Tactical SATCOM-Global program. These agreements highlight the company’s role in providing secure, jam-resistant satellite systems, aligning with growing defense priorities to modernize infrastructure. A partnership with UK-based Skyrora to secure a UK launch license further diversifies Viasat’s operational reach and underscores its strategic push into international markets.

Analysts remain divided on Viasat’s valuation. While some argue the stock is overvalued by 22.1% compared to its calculated fair value of $24.29, others contend its long-term cash flow potential and multi-orbit network strategy justify a premium. The debate centers on the feasibility of projected earnings growth and margin improvements amid high capital expenditures and competitive pressures in the broadband market.

Positive momentum in maritime and aviation connectivity divisions has also contributed to the stock’s rise. Recent contracts with partners like Pulsar International and Space42 highlight Viasat’s expanding role in these sectors, driven by demand for IoT-enabled services. However, challenges persist, including a decline in U.S. broadband subscribers and the financial burden of capital-intensive projects like the ViaSat-3 F2 launch.

Investor sentiment remains cautiously optimistic, with the recent rally reflecting hopes for successful execution of Viasat’s strategic initiatives. The coming months will be pivotal in determining whether the market’s expectations align with the company’s operational and financial performance, particularly as the October 2025 launch date approaches.