Viasat shares edge higher as Q1 earnings, revenue beat estimates

Published 05/08/2025, 22:02
 Viasat shares edge higher as Q1 earnings, revenue beat estimates

CARLSBAD, Calif. - Satellite communications provider Viasat, Inc. (NASDAQ:VSAT) reported first quarter fiscal 2026 earnings that significantly exceeded analyst expectations, with shares rising 0.8% following the announcement.

The company posted adjusted earnings per share of $0.17 for the quarter, beating the analyst consensus estimate of -$0.73 by $0.90. Revenue came in at $1.17 billion, surpassing the consensus estimate of $1.13 billion. The strong performance demonstrates Viasat’s ability to execute on its growth strategy following last year’s acquisition of Inmarsat.

Viasat maintained its fiscal 2026 outlook, projecting low single-digit YoY revenue growth and relatively flat adjusted EBITDA compared to the previous year. The company expects its Communication Services segment to deliver flat revenue performance, with low double-digit growth in aviation services offsetting declines in fixed services. Meanwhile, the Defense and Advanced Technologies segment is forecast to achieve mid-teens YoY revenue growth.

In a positive development for investors, Viasat reduced its capital expenditure guidance for fiscal 2026 to approximately $1.2 billion, an improvement of $100 million from previous guidance. The company continues to expect double-digit operating cash flow growth and anticipates achieving positive free cash flow in the second half of fiscal 2026.

The company also noted that it expects net debt relative to LTM Adjusted EBITDA to increase modestly by the end of fiscal 2026. Viasat completed its acquisition of Inmarsat in May 2023, combining the resources of both companies to create a more comprehensive global communications provider.

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