Gilat Cuts 2026 revenue growth guidance to 3 percent

Gilat Satellite Networks reduced its 2026 revenue growth outlook to 3 percent, down from 13 percent, on its Nov. 10, 2026 earnings call, as third-quarter revenue fell to $116.2 million from $117.7 million a year earlier.

The company narrowed its full-year 2026 revenue range to $455 million to $475 million, down from the prior projection of $500 million to $520 million, a reduction of $45 million at the midpoint. Chief Financial Officer Gil Benyamini said the midpoint implies 3 percent year-over-year growth. The company also narrowed its adjusted EBITDA forecast, setting it at $61 million to $63 million, a midpoint implying 17 percent annual growth, helped by contract mix and expense cuts that offset the lower revenue outlook.

Gilat Satellite Networks Ltd. provides satellite networking technology, solutions and services worldwide, with its shares trading on NASDAQ and TASE under GILT. The company reported third-quarter 2026 results on Nov. 10, 2026, for the period ending September 30, 2026. Revenue for the quarter came in below the $127.5 million analyst estimate, edging down from the same quarter of 2025.

Non-GAAP net income climbed 21 percent to $14.3 million, or $0.18 per diluted share, for the third quarter of 2026. Adjusted non-GAAP diluted EPS came to $0.18, topping the $0.14 consensus estimate by about 26 percent, helped by cost and pricing discipline. GAAP operating income rose to $7.9 million from $7.5 million a year earlier, while non-GAAP operating income was $14.6 million. GAAP net income reached $8.7 million, compared with $8.1 million in the third quarter of 2025, which works out to $0.11 per diluted share.

The defense business grew 53 percent, reaching approximately $37 million in the third quarter of 2026, led by transportable product deliveries at Gilat DataPath. Commercial revenue fell 4 percent to roughly $70 million in the third quarter of 2026, mainly because of delayed amplifier shipments to certain customers and shifting in-flight connectivity rollout schedules. Peru revenue dropped 54 percent, to $9.6 million from $20.6 million a year earlier.

Delays in satellite launches and in-flight connectivity equipment deliveries slowed revenue conversion. Rescheduled in-flight connectivity terminal deliveries, launch delays for LEO and GEO satellites, and Peru contracts shifting into 2027 drove the guidance reduction. Launch options scarcity delayed LEO and GEO satellite development, pushing back expected timing for some network equipment orders. Delays in finalizing commercial terms pushed back in-flight connectivity terminal deliveries, adding to the third-quarter revenue shortfall, and bad debt write-offs linked to Hughes Network Systems’ Chapter 11 filing and unfavorable currency conditions affected results.

Adi Sfadia, the chief executive officer, linked defense growth to a multi-year acquisition strategy as vertically integrated LEO providers put pressure on traditional GEO connectivity. “Changing market dynamics are intensifying competitive pressure, as vertically integrated LEO providers gain market share from traditional GEO providers,” Sfadia said. The company’s defense-focused acquisition and investment strategy is being reinforced as vertically integrated LEO providers gain market share from traditional GEO providers and intensify competitive pressure. Changing market dynamics reinforce that strategic direction.

Gilat’s planned acquisition of Comtech’s Satellite and Space business should contribute more than $180 million in revenue and $18 million in adjusted EBITDA, though it remains outside the 2026 outlook because it awaits foreign-investment approval. Closing is expected by year-end, subject to applicable closing conditions, and would create a company with scale for secure defense communications and a substantially larger U.S. presence. By 2027, the deal is expected to more than double defense revenues.

The company is pursuing next-generation ground infrastructure work, in-flight connectivity, and new sovereign satellite constellations, which management describes as a growing market. Gilat also demonstrated a system that uses AI to detect and cancel interference on satellite links during the third quarter of 2026.

Gilat received more than $8 million in additional orders from the U.S. Department of War and more than $10 million in additional SkyEdge IV orders from a leading satellite operator. The company received a $28 million contract to expand connectivity in Peru, and the company won more than $32 million for Multi-Band DKET Systems supporting U.S. defense network resilience. It also signed a $14 million agreement to expand broadband internet access in Peru and announced $100 million five-year convertible notes carrying a 60 percent conversion premium.

Cash, cash equivalents, and short-term deposits reached $260 million as of September 30, 2026, compared with $159 million as of June 30, 2026. The rise reflects roughly $99 million in net proceeds from convertible notes issued in the quarter. Near-term consolidated growth depends on stabilized satellite launch schedules and the pace of scheduled in-flight connectivity deliveries across commercial airline fleets.