Gilat Satellite Networks Stock Plummets 19.3% Despite Strong Q4 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy GILT?
Source: Fool
- Earnings Beat Expectations: Gilat reported Q4 2025 earnings of $0.20 per share, surpassing analyst estimates of $0.14, with sales reaching $137 million, a 75% increase over the expected $78.1 million, indicating strong market performance.
- Declining Profitability: Despite significant sales growth, Gilat's operating income remained flat year-over-year, with GAAP earnings at $0.13 per share, a 38% decline, raising investor concerns about the company's profitability.
- Annual Performance Review: For fiscal year 2025, Gilat's sales increased by 48%, but operating profit fell by 15% and net income dropped by 23%, suggesting that while the company is growing, it faces profitability challenges that impact market confidence.
- Cautious Future Outlook: Gilat expects a 30% sales growth in 2026, targeting approximately $510 million in revenue, but the lack of clear GAAP earnings guidance, combined with a current price-to-earnings ratio exceeding 45, leads to a cautious market sentiment regarding its future performance.
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Analyst Views on GILT
About GILT
Gilat Satellite Networks Ltd. is an Israel-based provider of satellite-based broadband communications. The Company operates through three segments: Commercial, Mobility, and Services divisions. The Company designs and manufactures satellite ground segment and networking communications equipment, which it sells to its customers either as network components (modems, Block Up converters (BUCs), antennas) or as complete network solutions (which include hubs and related terminals and services) or turnkey projects. The equipment that the Company develops includes commercial Very Small Aperture Terminals (VSAT) systems, defense and homeland security satellite communications systems, solid-state power amplifiers (SSPAs), BUCs, low-profile antennas, on-the-move/on-the-pause terminals, and modems. The Company's equipment is used by satellite operators, service providers, telecommunications operators, system integrators, government and defense organizations, large corporations, and enterprises.
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.
Gilat Satellite to Announce Q4 Earnings on February 10
- Earnings Announcement: Gilat Satellite is set to release its Q4 earnings on February 10 before the market opens, with consensus EPS estimated at $0.14, reflecting a 6.7% year-over-year decline, while revenue is projected at $133.56 million, indicating a robust 71% year-over-year increase.
- Historical Performance: Over the past two years, Gilat has exceeded EPS estimates 88% of the time and revenue estimates 50% of the time, demonstrating a degree of financial stability and reliability in its earnings reports.
- Estimate Revision Trends: In the last three months, EPS estimates have seen no upward revisions but three downward adjustments, while revenue estimates have experienced two upward revisions with no downward changes, suggesting increased market confidence in revenue growth.
- Funding and Orders: Recently, Gilat secured a $10 million order for its low earth orbit constellation and plans to raise $100 million through an oversubscribed private placement, indicating proactive steps in business expansion and capital acquisition.
See More
Gilat Satellite Networks Stock Plummets 19.3% Despite Strong Q4 Earnings
- Earnings Beat Expectations: Gilat reported Q4 2025 earnings of $0.20 per share, surpassing analyst estimates of $0.14, with sales reaching $137 million, a 75% increase over the expected $78.1 million, indicating strong market performance.
- Declining Profitability: Despite significant sales growth, Gilat's operating income remained flat year-over-year, with GAAP earnings at $0.13 per share, a 38% decline, raising investor concerns about the company's profitability.
- Annual Performance Review: For fiscal year 2025, Gilat's sales increased by 48%, but operating profit fell by 15% and net income dropped by 23%, suggesting that while the company is growing, it faces profitability challenges that impact market confidence.
- Cautious Future Outlook: Gilat expects a 30% sales growth in 2026, targeting approximately $510 million in revenue, but the lack of clear GAAP earnings guidance, combined with a current price-to-earnings ratio exceeding 45, leads to a cautious market sentiment regarding its future performance.
See More
Gilat Satellite Reports Strong Q4 Earnings and Positive 2026 Guidance
- Earnings Beat: Gilat Satellite's Q4 non-GAAP EPS of $0.20 exceeded expectations by $0.06, indicating improved profitability that is likely to positively influence stock performance.
- Significant Revenue Growth: The company reported Q4 revenue of $137 million, a 75.4% year-over-year increase, surpassing market expectations by $3.44 million, reflecting strong market performance and heightened customer demand.
- 2026 Financial Guidance: Management projects 2026 revenue between $500 million and $520 million, exceeding the consensus of $505.86 million, demonstrating confidence in future growth with an approximate 13% growth rate at the midpoint.
- EBITDA Growth Expectations: Adjusted EBITDA for 2026 is expected to range from $61 million to $66 million, indicating a growth rate of about 19% at the midpoint, showcasing effective strategies in cost control and profitability enhancement.
See More
Gilat Secures Over $10M Contract for LEO Infrastructure
- Major Contract Awarded: Gilat Satellite Networks has secured a contract exceeding $10 million from a leading ground gateway antenna provider, marking a significant advancement in the company's efforts to build low Earth orbit satellite infrastructure.
- Technical Support: The order involves Gilat Wavestream's Powerstream Ka solid-state power amplifier, which provides high-power Ka-band amplification for high-capacity gateway sites across LEO, MEO, and GEO operations, enhancing overall network performance.
- Delivery Timeline: Deliveries are expected over the next 12 months, which will accelerate the deployment of infrastructure and further solidify Gilat's competitive position in the satellite communications market.
- Market Outlook: As the rollout of low Earth orbit satellite constellations progresses, Gilat's technology and products are poised to generate substantial revenue growth opportunities, strengthening its strategic advantage in the rapidly evolving satellite communications industry.
See More
Gilat Secures Over $10 Million Order for LEO Infrastructure
- Significant Order Value: Gilat Satellite Networks announced it has secured an order exceeding $10 million to support the ground infrastructure rollout for a leading Low Earth Orbit (LEO) constellation, with deliveries expected over the next 12 months, indicating strong demand for the company's satellite networking technology.
- Technical Support Capability: The order involves Gilat Wavestream's Powerstream Ka solid-state power amplifier, designed to provide reliable, long-lasting high-power Ka-band amplification for high-capacity gateway sites, ensuring continuous and cost-effective operations for LEO, MEO, and GEO gateways, thereby reinforcing its market position.
- Global Delivery Experience: With over 2,000 Ka-band units delivered worldwide, Gilat demonstrates its leadership in high-capacity gateway infrastructure, capable of meeting the growing market demand and enhancing customer trust in its solutions.
- Strategic Market Positioning: With 35 years of industry experience, Gilat's product portfolio supports both commercial and defense applications, showcasing its commitment to providing deep technology solutions globally and highlighting its strategic significance and market potential in satellite communications.
See More
Gilat Satellite Networks to Attend Multiple Conferences
- Management Conference Schedule: Gilat Satellite Networks will participate in the Oppenheimer 11th Annual Emerging Growth Conference on February 3, 2026, with CFO Gil Benyamini engaging in one-on-one and small group meetings to enhance the company's visibility among investors.
- Defense and Aerospace Conference: CEO Adi Sfadia and CFO Gil Benyamini will attend the TD Cowen 47th Annual Aerospace & Defense Conference on February 11-12, 2026, showcasing their latest satellite technology advancements through live and archived presentations to strengthen industry influence.
- Showcasing Technical Strength: With over 35 years of experience in satellite broadband communications, Gilat offers a range of solutions including high-performance satellite terminals and software-defined satellites, aiming to meet stringent service level requirements in commercial and defense markets.
- Global Connectivity Vision: Gilat is committed to providing communication solutions worldwide, supporting government, enterprise, and critical infrastructure clients, demonstrating its determination to remain competitive in a rapidly changing market.
See More
Gilat Satellite to Announce Q4 Earnings on February 10
- Earnings Announcement: Gilat Satellite is set to release its Q4 earnings on February 10 before the market opens, with consensus EPS estimated at $0.14, reflecting a 6.7% year-over-year decline, while revenue is projected at $133.56 million, indicating a robust 71% year-over-year increase.
- Historical Performance: Over the past two years, Gilat has exceeded EPS estimates 88% of the time and revenue estimates 50% of the time, demonstrating a degree of financial stability and reliability in its earnings reports.
- Estimate Revision Trends: In the last three months, EPS estimates have seen no upward revisions but three downward adjustments, while revenue estimates have experienced two upward revisions with no downward changes, suggesting increased market confidence in revenue growth.
- Funding and Orders: Recently, Gilat secured a $10 million order for its low earth orbit constellation and plans to raise $100 million through an oversubscribed private placement, indicating proactive steps in business expansion and capital acquisition.
See More
Gilat Satellite Networks Stock Plummets 19.3% Despite Strong Q4 Earnings
- Earnings Beat Expectations: Gilat reported Q4 2025 earnings of $0.20 per share, surpassing analyst estimates of $0.14, with sales reaching $137 million, a 75% increase over the expected $78.1 million, indicating strong market performance.
- Declining Profitability: Despite significant sales growth, Gilat's operating income remained flat year-over-year, with GAAP earnings at $0.13 per share, a 38% decline, raising investor concerns about the company's profitability.
- Annual Performance Review: For fiscal year 2025, Gilat's sales increased by 48%, but operating profit fell by 15% and net income dropped by 23%, suggesting that while the company is growing, it faces profitability challenges that impact market confidence.
- Cautious Future Outlook: Gilat expects a 30% sales growth in 2026, targeting approximately $510 million in revenue, but the lack of clear GAAP earnings guidance, combined with a current price-to-earnings ratio exceeding 45, leads to a cautious market sentiment regarding its future performance.
See More
Gilat Satellite Reports Strong Q4 Earnings and Positive 2026 Guidance
- Earnings Beat: Gilat Satellite's Q4 non-GAAP EPS of $0.20 exceeded expectations by $0.06, indicating improved profitability that is likely to positively influence stock performance.
- Significant Revenue Growth: The company reported Q4 revenue of $137 million, a 75.4% year-over-year increase, surpassing market expectations by $3.44 million, reflecting strong market performance and heightened customer demand.
- 2026 Financial Guidance: Management projects 2026 revenue between $500 million and $520 million, exceeding the consensus of $505.86 million, demonstrating confidence in future growth with an approximate 13% growth rate at the midpoint.
- EBITDA Growth Expectations: Adjusted EBITDA for 2026 is expected to range from $61 million to $66 million, indicating a growth rate of about 19% at the midpoint, showcasing effective strategies in cost control and profitability enhancement.
See More
Gilat Secures Over $10M Contract for LEO Infrastructure
- Major Contract Awarded: Gilat Satellite Networks has secured a contract exceeding $10 million from a leading ground gateway antenna provider, marking a significant advancement in the company's efforts to build low Earth orbit satellite infrastructure.
- Technical Support: The order involves Gilat Wavestream's Powerstream Ka solid-state power amplifier, which provides high-power Ka-band amplification for high-capacity gateway sites across LEO, MEO, and GEO operations, enhancing overall network performance.
- Delivery Timeline: Deliveries are expected over the next 12 months, which will accelerate the deployment of infrastructure and further solidify Gilat's competitive position in the satellite communications market.
- Market Outlook: As the rollout of low Earth orbit satellite constellations progresses, Gilat's technology and products are poised to generate substantial revenue growth opportunities, strengthening its strategic advantage in the rapidly evolving satellite communications industry.
See More
Gilat Secures Over $10 Million Order for LEO Infrastructure
- Significant Order Value: Gilat Satellite Networks announced it has secured an order exceeding $10 million to support the ground infrastructure rollout for a leading Low Earth Orbit (LEO) constellation, with deliveries expected over the next 12 months, indicating strong demand for the company's satellite networking technology.
- Technical Support Capability: The order involves Gilat Wavestream's Powerstream Ka solid-state power amplifier, designed to provide reliable, long-lasting high-power Ka-band amplification for high-capacity gateway sites, ensuring continuous and cost-effective operations for LEO, MEO, and GEO gateways, thereby reinforcing its market position.
- Global Delivery Experience: With over 2,000 Ka-band units delivered worldwide, Gilat demonstrates its leadership in high-capacity gateway infrastructure, capable of meeting the growing market demand and enhancing customer trust in its solutions.
- Strategic Market Positioning: With 35 years of industry experience, Gilat's product portfolio supports both commercial and defense applications, showcasing its commitment to providing deep technology solutions globally and highlighting its strategic significance and market potential in satellite communications.
See More
Gilat Satellite Networks to Attend Multiple Conferences
- Management Conference Schedule: Gilat Satellite Networks will participate in the Oppenheimer 11th Annual Emerging Growth Conference on February 3, 2026, with CFO Gil Benyamini engaging in one-on-one and small group meetings to enhance the company's visibility among investors.
- Defense and Aerospace Conference: CEO Adi Sfadia and CFO Gil Benyamini will attend the TD Cowen 47th Annual Aerospace & Defense Conference on February 11-12, 2026, showcasing their latest satellite technology advancements through live and archived presentations to strengthen industry influence.
- Showcasing Technical Strength: With over 35 years of experience in satellite broadband communications, Gilat offers a range of solutions including high-performance satellite terminals and software-defined satellites, aiming to meet stringent service level requirements in commercial and defense markets.
- Global Connectivity Vision: Gilat is committed to providing communication solutions worldwide, supporting government, enterprise, and critical infrastructure clients, demonstrating its determination to remain competitive in a rapidly changing market.
See More
