Gilat Satellite Networks Q3 2026: EPS Beat Overshadowed by Revenue Miss and Guidance Cut
As seen on the 24/7 Wall St. homepage on November 10, 2026.
Management cut full-year revenue guidance to $455 million to $475 million on rescheduled in-flight connectivity deliveries, LEO and GEO launch delays, and Peru contracts slipping into 2027, outweighing the EPS beat. Defense revenue grew 53% year over year and the pending Comtech deal is expected to more than double defense sales next year.
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Gilat Satellite Networks posted adjusted non-GAAP diluted EPS of $0.18 for the third quarter of 2026, clearing the $0.14 consensus by roughly 26%. That profit outperformance was driven by cost and pricing discipline, which pushed adjusted EBITDA up 13% to $17.6 million and expanded the adjusted EBITDA margin to approximately 15% from 13% a year earlier, even as the company absorbed bad debt write-offs tied to Hughes Network Systems' Chapter 11 filing and unfavorable currency conditions.
Revenue of $116.2 million missed the $127.5 million estimate and edged down about 1.2% from the same quarter a year ago. Three specific factors drove the shortfall: rescheduled in-flight connectivity terminal deliveries while commercial terms were finalized, delays in LEO and GEO satellite development and launches pushing out equipment orders, and Peru agreements that were reached later than anticipated, shifting some revenue into 2027.
Those same pressures led management to revise full-year 2026 guidance downward. The new outlook calls for revenue of $455 million to $475 million and adjusted EBITDA of $61 million to $63 million. The Peru segment illustrated the strain most visibly, with revenue falling to $9.6 million from $20.6 million a year earlier.
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Defense posted 53% year-over-year revenue growth in the quarter, and CEO Adi Sfadia tied the momentum directly to a deliberate multi-year strategy of building out the defense business through acquisitions and investment as vertically integrated LEO providers intensify competitive pressure on traditional GEO connectivity. Sfadia noted that changing market dynamics are reinforcing that strategic direction.
The pending acquisition of Comtech is the next step in that pivot. The deal is expected to close by year-end, subject to closing conditions, and management projects it will more than double defense revenues in 2027. Gilat also demonstrated AI-based interference detection and cancellation technology for satellite links during the quarter, signaling continued investment in next-generation ground infrastructure alongside the defense build-out.
Mentioned: GILT