Viasat Stock Drops 8% After Strong YTD Gains and Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Stock Pullback: Viasat's stock fell over 8% on Friday to approximately $79.44 as investors locked in profits after a remarkable 132.59% YTD gain, significantly outperforming the S&P 500's 10.49% return.
- Earnings Highlights: The company reported Q4 FY2026 revenue of $1.17 billion, up 2% YoY, with net income of $58.8 million compared to a loss of $246.1 million last year, largely driven by a $168.1 million gain from the sale of its Navarino investment.
- Future Outlook: Despite achieving a record $4.64 billion in annual revenue, up 3% YoY, the company’s flat EBITDA guidance for FY2027 and nearly $180 million free cash flow expectation disappointed some investors, reflecting caution around near-term profitability growth.
- Analyst Optimism: Analysts remain positive, with B. Riley raising its price target on Viasat from $94 to $106 while maintaining a Buy rating, citing strong momentum in defense, spectrum, and satellite services, indicating confidence in the company's future prospects.
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Analyst Views on VSAT
Wall Street analysts forecast VSAT stock price to fall
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 86.690
Low
36.00
Averages
43.80
High
52.00
Current: 86.690
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 Q4 Earnings with Record Backlog and Revenue Growth
- Financial Performance Boost: Viasat's Q4 revenue reached $1.2 billion, reflecting a 2% year-over-year increase, with net income at $59 million, an improvement of $305 million primarily due to gains from equity investment sales and reduced expenses, showcasing effective financial management.
- Free Cash Flow Growth: Despite capital expenditures of $298 million, up 20%, the company achieved positive free cash flow of $24 million, indicating a strong balance between investment and cash flow management, enhancing future investment capacity.
- Record Backlog: The company reported a backlog of $4.1 billion, a 15% year-over-year increase, reflecting robust market demand, particularly in the defense and advanced technologies sectors, providing strong support for future revenue.
- Debt Management Improvement: Viasat's net debt to adjusted EBITDA ratio improved to 3.1 times, nearing its target of below 3.0, demonstrating significant progress in reducing financial leverage, which helps boost investor confidence and supports long-term sustainability.
See More
Viasat Stock Drops 8% After Strong YTD Gains and Earnings Report
- Stock Pullback: Viasat's stock fell over 8% on Friday to approximately $79.44 as investors locked in profits after a remarkable 132.59% YTD gain, significantly outperforming the S&P 500's 10.49% return.
- Earnings Highlights: The company reported Q4 FY2026 revenue of $1.17 billion, up 2% YoY, with net income of $58.8 million compared to a loss of $246.1 million last year, largely driven by a $168.1 million gain from the sale of its Navarino investment.
- Future Outlook: Despite achieving a record $4.64 billion in annual revenue, up 3% YoY, the company’s flat EBITDA guidance for FY2027 and nearly $180 million free cash flow expectation disappointed some investors, reflecting caution around near-term profitability growth.
- Analyst Optimism: Analysts remain positive, with B. Riley raising its price target on Viasat from $94 to $106 while maintaining a Buy rating, citing strong momentum in defense, spectrum, and satellite services, indicating confidence in the company's future prospects.
See More
US Stock Indices Reach All-Time Highs Amid Positive Economic Signals
- Market Surge: The S&P 500 rose by 0.21%, the Dow Jones Industrial Average increased by 0.65%, and the Nasdaq 100 climbed by 0.25%, with all three indices reaching new all-time highs, reflecting strong market confidence in economic recovery.
- Tech Stocks Rally: Dell Technologies surged over 31% after reporting Q1 total revenue of $43.84 billion, significantly exceeding the consensus estimate of $35.52 billion, and raised its 2027 revenue forecast to $165 billion to $169 billion, indicating robust demand for AI infrastructure.
- Positive Economic Indicators: The May MNI Chicago PMI jumped 13.5 to 62.7, well above the expected 50.3, marking the strongest expansion pace in 4.25 years, which supports the bullish sentiment in the stock market.
- Oil Price Decline: Crude oil prices fell more than 1% to a five-week low as the US and Iran tentatively agreed to extend a ceasefire, easing inflation concerns and fostering optimism about the economic outlook.
See More
U.S. Stock Indices Reach All-Time Highs Amid Positive Market Sentiment
- Market Optimism: The U.S. stock indices reached all-time highs today, with the S&P 500 up 0.41%, the Dow Jones up 0.43%, and the Nasdaq 100 up 0.66%, driven by improved prospects for a peace deal in the Middle East, reflecting investor confidence in economic recovery.
- Tech Stock Surge: Dell Technologies surged over 30% after providing a sales outlook that exceeded analyst expectations, highlighting relentless demand for AI infrastructure upgrades, which further boosted the entire tech sector's attractiveness to investors.
- Crude Oil Price Decline: Crude oil prices fell more than 1% to a five-week low due to a preliminary agreement between the U.S. and Iran, easing inflation concerns and fostering optimism about a potential recovery in oil supply, which could benefit related industries.
- Strong Corporate Earnings: As of now, 84% of S&P 500 companies have beaten Q1 earnings estimates, with overall earnings projected to rise 12% year-over-year, although excluding the tech sector, growth is only expected at 3%, indicating market reliance on tech for future growth amidst uncertainty.
See More
Viasat (VSAT) Q4 2026 Earnings Transcript
See More
Viasat Reports Q4 Earnings Miss with Cautious Outlook
- Earnings Performance: Viasat's Q4 Non-GAAP EPS of -$0.02 misses expectations by $0.34, indicating pressure on profitability that may affect investor confidence moving forward.
- Revenue Analysis: The company reported Q4 revenue of $1.17 billion, a 1.7% year-over-year increase, yet it fell short of expectations by $30 million, reflecting unmet market demand that could impact future growth strategies.
- Future Outlook: For FY2027, Viasat anticipates mid-single-digit year-over-year revenue growth, with Adjusted EBITDA expected to remain flat or slightly increase, suggesting limited growth potential that necessitates strategic adjustments to enhance performance.
- Long-Term Forecast: The FY2026 Non-GAAP EPS is projected at $1.03, with revenue expected to reach $4.64 billion, reflecting a 3% year-over-year increase; however, the overall performance remains contingent on market conditions and requires close monitoring.
See More
Viasat Reports Q4 Earnings with Record Backlog and Revenue Growth
- Financial Performance Boost: Viasat's Q4 revenue reached $1.2 billion, reflecting a 2% year-over-year increase, with net income at $59 million, an improvement of $305 million primarily due to gains from equity investment sales and reduced expenses, showcasing effective financial management.
- Free Cash Flow Growth: Despite capital expenditures of $298 million, up 20%, the company achieved positive free cash flow of $24 million, indicating a strong balance between investment and cash flow management, enhancing future investment capacity.
- Record Backlog: The company reported a backlog of $4.1 billion, a 15% year-over-year increase, reflecting robust market demand, particularly in the defense and advanced technologies sectors, providing strong support for future revenue.
- Debt Management Improvement: Viasat's net debt to adjusted EBITDA ratio improved to 3.1 times, nearing its target of below 3.0, demonstrating significant progress in reducing financial leverage, which helps boost investor confidence and supports long-term sustainability.
See More
Viasat Stock Drops 8% After Strong YTD Gains and Earnings Report
- Stock Pullback: Viasat's stock fell over 8% on Friday to approximately $79.44 as investors locked in profits after a remarkable 132.59% YTD gain, significantly outperforming the S&P 500's 10.49% return.
- Earnings Highlights: The company reported Q4 FY2026 revenue of $1.17 billion, up 2% YoY, with net income of $58.8 million compared to a loss of $246.1 million last year, largely driven by a $168.1 million gain from the sale of its Navarino investment.
- Future Outlook: Despite achieving a record $4.64 billion in annual revenue, up 3% YoY, the company’s flat EBITDA guidance for FY2027 and nearly $180 million free cash flow expectation disappointed some investors, reflecting caution around near-term profitability growth.
- Analyst Optimism: Analysts remain positive, with B. Riley raising its price target on Viasat from $94 to $106 while maintaining a Buy rating, citing strong momentum in defense, spectrum, and satellite services, indicating confidence in the company's future prospects.
See More
US Stock Indices Reach All-Time Highs Amid Positive Economic Signals
- Market Surge: The S&P 500 rose by 0.21%, the Dow Jones Industrial Average increased by 0.65%, and the Nasdaq 100 climbed by 0.25%, with all three indices reaching new all-time highs, reflecting strong market confidence in economic recovery.
- Tech Stocks Rally: Dell Technologies surged over 31% after reporting Q1 total revenue of $43.84 billion, significantly exceeding the consensus estimate of $35.52 billion, and raised its 2027 revenue forecast to $165 billion to $169 billion, indicating robust demand for AI infrastructure.
- Positive Economic Indicators: The May MNI Chicago PMI jumped 13.5 to 62.7, well above the expected 50.3, marking the strongest expansion pace in 4.25 years, which supports the bullish sentiment in the stock market.
- Oil Price Decline: Crude oil prices fell more than 1% to a five-week low as the US and Iran tentatively agreed to extend a ceasefire, easing inflation concerns and fostering optimism about the economic outlook.
See More
U.S. Stock Indices Reach All-Time Highs Amid Positive Market Sentiment
- Market Optimism: The U.S. stock indices reached all-time highs today, with the S&P 500 up 0.41%, the Dow Jones up 0.43%, and the Nasdaq 100 up 0.66%, driven by improved prospects for a peace deal in the Middle East, reflecting investor confidence in economic recovery.
- Tech Stock Surge: Dell Technologies surged over 30% after providing a sales outlook that exceeded analyst expectations, highlighting relentless demand for AI infrastructure upgrades, which further boosted the entire tech sector's attractiveness to investors.
- Crude Oil Price Decline: Crude oil prices fell more than 1% to a five-week low due to a preliminary agreement between the U.S. and Iran, easing inflation concerns and fostering optimism about a potential recovery in oil supply, which could benefit related industries.
- Strong Corporate Earnings: As of now, 84% of S&P 500 companies have beaten Q1 earnings estimates, with overall earnings projected to rise 12% year-over-year, although excluding the tech sector, growth is only expected at 3%, indicating market reliance on tech for future growth amidst uncertainty.
See More
Viasat (VSAT) Q4 2026 Earnings Transcript
See More
Viasat Reports Q4 Earnings Miss with Cautious Outlook
- Earnings Performance: Viasat's Q4 Non-GAAP EPS of -$0.02 misses expectations by $0.34, indicating pressure on profitability that may affect investor confidence moving forward.
- Revenue Analysis: The company reported Q4 revenue of $1.17 billion, a 1.7% year-over-year increase, yet it fell short of expectations by $30 million, reflecting unmet market demand that could impact future growth strategies.
- Future Outlook: For FY2027, Viasat anticipates mid-single-digit year-over-year revenue growth, with Adjusted EBITDA expected to remain flat or slightly increase, suggesting limited growth potential that necessitates strategic adjustments to enhance performance.
- Long-Term Forecast: The FY2026 Non-GAAP EPS is projected at $1.03, with revenue expected to reach $4.64 billion, reflecting a 3% year-over-year increase; however, the overall performance remains contingent on market conditions and requires close monitoring.
See More
