Viasat Reports Strong Q3 Earnings Beat and Strategic Growth Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy VSAT?
Source: CNBC
Viasat Inc's stock rose by 11.30% as it crossed above the 5-day SMA, reflecting positive investor sentiment following its recent earnings report.
The company reported a non-GAAP EPS of $0.79 for Q3, exceeding expectations by $0.55, which indicates strong profitability and may attract increased investor interest. Additionally, Viasat's revenue for the quarter was $1.16 billion, a 3.6% year-over-year increase, although it fell short of expectations by $10 million. The positive stock reaction, with shares gaining about 10%, demonstrates market recognition of its profitability and the company's optimistic outlook for future cash flow growth.
This strong performance, coupled with strategic initiatives such as potential separation of government and commercial businesses, positions Viasat favorably in the competitive satellite industry, suggesting further growth opportunities.
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Analyst Views on VSAT
Wall Street analysts forecast VSAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VSAT is 43.80 USD with a low forecast of 36.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 37.440
Low
36.00
Averages
43.80
High
52.00
Current: 37.440
Low
36.00
Averages
43.80
High
52.00
About VSAT
Viasat, Inc. is a global communications company. Its segments include communication services and defense and advanced technologies. The communication services segment provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, as well as for residential and enterprise fixed broadband customers. In addition, this segment includes the development and sale of a wide array of advanced satellite and wireless products and terminals that support or enable the provision of fixed and mobile broadband and narrowband services. The defense and advanced technologies segment develops and offers a diverse array of vertically integrated solutions to government and commercial customers, leveraging its core technical competencies in encryption, cybersecurity, tactical gateways, modems and waveforms. Its services are designed to provide customers with the capacity density, market access, speed, bandwidth and responsiveness they need.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Viasat Reports Steady Q3 2026 Performance with Strategic Growth Focus
- Strong Financial Performance: Viasat reported Q3 revenue of $1.2 billion and adjusted EBITDA of $387 million, achieving a 33% EBITDA margin, with cash flow from operations at $727 million, demonstrating robust cash generation capabilities that bolster future investment potential.
- Satellite Launch Progress: CEO Mark Dankberg announced that Flight 2 is set to launch in early November with services expected to commence by May, while Flight 3 will follow shortly after, anticipated to enter service by late summer, significantly enhancing bandwidth capacity for aviation, maritime, and government SATCOM.
- Capital Efficiency Improvement: The company plans to reduce fiscal 2026 capital expenditures to between $1 billion and $1.1 billion, lowering previous guidance by $100 million to $200 million, reflecting a strategic focus on optimizing capital spending to enhance return on investment and support future growth.
- Strategic Review and Potential Separation: Management is conducting a strategic review that includes the potential separation of government and commercial businesses, contingent on successful satellite deployments, macro market trends, and achieving deleveraging and free cash flow targets, indicating a thoughtful approach to future development.
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- AI Infrastructure Stocks Surge: Companies linked to AI infrastructure, such as Lumen Technologies and Applied Digital, saw stock prices rise by at least 20%, reflecting a recovery in investor confidence after a week of selling, potentially signaling a shift in market sentiment.
- Viasat Earnings Beat: Viasat reported adjusted earnings of $0.79 per share for the third quarter, up from $0.11 a year earlier, with shares gaining about 10%, as the company anticipates double-digit operating cash flow growth in 2026, showcasing a strong business outlook.
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Viasat Reports Q3 Earnings Beat with Strong EPS Growth
- Earnings Beat: Viasat's Q3 non-GAAP EPS of $0.79 exceeded expectations by $0.55, indicating strong profitability that may attract increased investor interest and confidence in the company's financial health.
- Revenue Miss: Despite a year-over-year revenue increase of 3.6% to $1.16 billion, the figure fell short of expectations by $10 million, reflecting intensified market competition and demand fluctuations that could impact future investment sentiment.
- Positive Stock Reaction: Following the earnings report, Viasat's shares rose by 3%, demonstrating market recognition of its profitability, which may support the company's future capital operations and strategic expansions.
- Optimistic Industry Outlook: Viasat is regarded as a leader in the satellite industry; despite facing challenges, its solid position in the high-risk satellite market suggests potential for growth through technological innovation and market expansion.
See More
Viasat Set to Announce Q3 Earnings on February 5th
- Earnings Announcement: Viasat is set to release its Q3 earnings on February 5th after market close, with a consensus EPS estimate of $0.24, reflecting a significant year-over-year increase of 118.2%, which could positively influence stock performance.
- Revenue Expectations: The anticipated revenue for Q3 is $1.17 billion, representing a 4.5% year-over-year growth, indicating stable performance in the satellite communications market and potentially boosting investor confidence in future growth.
- Historical Performance Review: Over the past two years, Viasat has beaten EPS estimates 50% of the time and revenue estimates 88% of the time, showcasing a degree of reliability in financial performance that may attract more investor interest.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates experienced four upward revisions and three downward adjustments, reflecting mixed market sentiments regarding the company's future performance, warranting cautious evaluation by investors.
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Analysis of Selling Options for Viasat Inc.
- Options Selling Risk: Selling puts on Viasat Inc does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, which requires the stock price to fall below the $15 strike price, highlighting the complexities of options trading.
- Yield Analysis: Unless Viasat Inc's stock drops by 67.7%, the only benefit from selling the put option is the collection of a 6.8% annualized return, indicating limited appeal for this options selling strategy under current market conditions.
- Volatility Consideration: With a trailing twelve-month volatility of 83% for Viasat Inc, this metric, combined with fundamental analysis, can assist investors in determining whether selling the January 2028 put at the $15 strike price is worth the associated risks.
- Market Price Comparison: The current stock price of Viasat Inc is $46.31, and the relationship between the strike price and market price will influence investor decisions, necessitating careful evaluation of potential risks and rewards.
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Ryanair Rejects Musk's Starlink Service, Claims Passengers Won't Pay
- Cost Barrier: Ryanair CEO Michael O'Leary stated that the installation cost of Starlink WiFi service is approximately $170,000 per aircraft, and with passengers unwilling to pay a fee of 1-2 euros, the airline cannot shoulder an annual cost of up to $250 million.
- Market Trend Shift: While long-haul carriers like Lufthansa and Virgin Atlantic have signed up for Starlink, viewing high-quality WiFi as essential for attracting customers, short-haul airlines like Ryanair believe such investments do not align with their business model.
- Passenger Demand Analysis: O'Leary noted that less than 10% of Ryanair's passengers are expected to pay for WiFi, making the economic viability of offering this service on short flights questionable, which further impacts the company's profitability.
- Competitor Dynamics: In contrast to Ryanair, full-service airlines like British Airways and Air France-KLM have adopted WiFi as a
See More
Viasat Reports Steady Q3 2026 Performance with Strategic Growth Focus
- Strong Financial Performance: Viasat reported Q3 revenue of $1.2 billion and adjusted EBITDA of $387 million, achieving a 33% EBITDA margin, with cash flow from operations at $727 million, demonstrating robust cash generation capabilities that bolster future investment potential.
- Satellite Launch Progress: CEO Mark Dankberg announced that Flight 2 is set to launch in early November with services expected to commence by May, while Flight 3 will follow shortly after, anticipated to enter service by late summer, significantly enhancing bandwidth capacity for aviation, maritime, and government SATCOM.
- Capital Efficiency Improvement: The company plans to reduce fiscal 2026 capital expenditures to between $1 billion and $1.1 billion, lowering previous guidance by $100 million to $200 million, reflecting a strategic focus on optimizing capital spending to enhance return on investment and support future growth.
- Strategic Review and Potential Separation: Management is conducting a strategic review that includes the potential separation of government and commercial businesses, contingent on successful satellite deployments, macro market trends, and achieving deleveraging and free cash flow targets, indicating a thoughtful approach to future development.
See More
Health Insurance Stocks Slide, AI Stocks Surge
- Centene Guidance Miss: Centene's full-year revenue guidance of $186.5 billion to $190.5 billion fell short of the $194.1 billion consensus, leading to a 5% drop in shares, indicating pressure in the health insurance sector.
- AI Infrastructure Stocks Surge: Companies linked to AI infrastructure, such as Lumen Technologies and Applied Digital, saw stock prices rise by at least 20%, reflecting a recovery in investor confidence after a week of selling, potentially signaling a shift in market sentiment.
- Viasat Earnings Beat: Viasat reported adjusted earnings of $0.79 per share for the third quarter, up from $0.11 a year earlier, with shares gaining about 10%, as the company anticipates double-digit operating cash flow growth in 2026, showcasing a strong business outlook.
- Roblox Optimistic Forecast: Roblox expects full-year bookings between $8.28 billion and $8.55 billion, exceeding the $7.87 billion consensus, resulting in a 12% stock increase, indicating robust performance in the online gaming market and future growth potential.
See More
Viasat Reports Q3 Earnings Beat with Strong EPS Growth
- Earnings Beat: Viasat's Q3 non-GAAP EPS of $0.79 exceeded expectations by $0.55, indicating strong profitability that may attract increased investor interest and confidence in the company's financial health.
- Revenue Miss: Despite a year-over-year revenue increase of 3.6% to $1.16 billion, the figure fell short of expectations by $10 million, reflecting intensified market competition and demand fluctuations that could impact future investment sentiment.
- Positive Stock Reaction: Following the earnings report, Viasat's shares rose by 3%, demonstrating market recognition of its profitability, which may support the company's future capital operations and strategic expansions.
- Optimistic Industry Outlook: Viasat is regarded as a leader in the satellite industry; despite facing challenges, its solid position in the high-risk satellite market suggests potential for growth through technological innovation and market expansion.
See More
Viasat Set to Announce Q3 Earnings on February 5th
- Earnings Announcement: Viasat is set to release its Q3 earnings on February 5th after market close, with a consensus EPS estimate of $0.24, reflecting a significant year-over-year increase of 118.2%, which could positively influence stock performance.
- Revenue Expectations: The anticipated revenue for Q3 is $1.17 billion, representing a 4.5% year-over-year growth, indicating stable performance in the satellite communications market and potentially boosting investor confidence in future growth.
- Historical Performance Review: Over the past two years, Viasat has beaten EPS estimates 50% of the time and revenue estimates 88% of the time, showcasing a degree of reliability in financial performance that may attract more investor interest.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates experienced four upward revisions and three downward adjustments, reflecting mixed market sentiments regarding the company's future performance, warranting cautious evaluation by investors.
See More
Analysis of Selling Options for Viasat Inc.
- Options Selling Risk: Selling puts on Viasat Inc does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, which requires the stock price to fall below the $15 strike price, highlighting the complexities of options trading.
- Yield Analysis: Unless Viasat Inc's stock drops by 67.7%, the only benefit from selling the put option is the collection of a 6.8% annualized return, indicating limited appeal for this options selling strategy under current market conditions.
- Volatility Consideration: With a trailing twelve-month volatility of 83% for Viasat Inc, this metric, combined with fundamental analysis, can assist investors in determining whether selling the January 2028 put at the $15 strike price is worth the associated risks.
- Market Price Comparison: The current stock price of Viasat Inc is $46.31, and the relationship between the strike price and market price will influence investor decisions, necessitating careful evaluation of potential risks and rewards.
See More
Ryanair Rejects Musk's Starlink Service, Claims Passengers Won't Pay
- Cost Barrier: Ryanair CEO Michael O'Leary stated that the installation cost of Starlink WiFi service is approximately $170,000 per aircraft, and with passengers unwilling to pay a fee of 1-2 euros, the airline cannot shoulder an annual cost of up to $250 million.
- Market Trend Shift: While long-haul carriers like Lufthansa and Virgin Atlantic have signed up for Starlink, viewing high-quality WiFi as essential for attracting customers, short-haul airlines like Ryanair believe such investments do not align with their business model.
- Passenger Demand Analysis: O'Leary noted that less than 10% of Ryanair's passengers are expected to pay for WiFi, making the economic viability of offering this service on short flights questionable, which further impacts the company's profitability.
- Competitor Dynamics: In contrast to Ryanair, full-service airlines like British Airways and Air France-KLM have adopted WiFi as a
See More
