Viasat Q3 Earnings Surpass Estimates, Revenues Increase Y/Y

Core Insights - Viasat, Inc. (VSAT) reported mixed results for the third quarter of fiscal 2026, with net income exceeding estimates but revenue falling short of expectations [1][10] Financial Performance - The company achieved a net income of $25 million, or 18 cents per share, a significant recovery from a net loss of $158.4 million, or a loss of $1.23 per share, in the same quarter last year [2] - Excluding non-recurring items, Viasat's non-GAAP net income was $110.7 million, or 79 cents per share, compared to $14.7 million, or 11 cents per share, in the prior-year period, beating the Zacks Consensus Estimate by 74 cents [3] Revenue Breakdown - Total revenues increased to $1.15 billion from $1.12 billion year over year, although this figure missed the consensus estimate by $10 million [4] - Product revenues rose to $334.2 million from $314.3 million in the previous year, while net sales from services increased to $822.8 million from $809.4 million [4] - The Communication Services segment generated revenues of $825 million, up from $820 million, driven by growth in government satcom and aviation services, despite declines in maritime and U.S. fixed broadband [5] - The Defense and Advanced Technologies (DAT) segment reported revenues of $332 million, reflecting a 9% year-over-year increase, primarily due to growth in information security and cyber defense [6] Operational Metrics - Viasat's operating income for the quarter was $26.3 million, compared to $21.2 million in the prior-year quarter, while adjusted EBITDA was $387 million, down from $393 million [7] - The company generated an operating cash flow of $307 million, up from $219 million in the prior-year period, indicating improved operational performance [8] Future Outlook - For fiscal 2026, Viasat anticipates low single-digit revenue growth and flat adjusted EBITDA year over year, with the Communication Services segment expected to perform flat due to low double-digit growth in aviation services [11] - The DAT segment is projected to grow in the mid-teens, driven by strong growth in information security and cyber defense [11] - Capital expenditures are forecasted to be between $1 billion and $1.1 billion, including approximately $400 million for Inmarsat-related capital expenditures [11]