GET DAILY SIGNALSGilat Satellite Networks (GILT) Posts Q3 Profit Gains but Revenue Miss and Guidance Cut Send Shares Down -19%
Key Takeaways
- Third quarter 2026 revenue was $116.2 million, down about 1% from $117.7 million a year earlier and below Wall Street's consensus of roughly $126 million.
- Adjusted EBITDA rose 13% year over year to $17.6 million, with the margin expanding to approximately 15%.
- Non-GAAP diluted EPS of $0.18 topped analyst expectations of about $0.14, while GAAP diluted EPS fell to $0.11 from $0.14 on a higher share count.
- The Defense segment surged 53% to $36.9 million, while Commercial dipped 4% and Peru fell 54%, reflecting project timing shifts.
- Management lowered full-year 2026 revenue guidance to $455 million–$475 million from a prior $500 million–$520 million range.
- The stock dropped roughly 19% on the day, as the revenue miss and guidance cut overshadowed improving profitability.
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Earnings Context and Why It Matters
Gilat Satellite Networks is navigating a clear shift toward higher-margin defense work and away from lower-margin commercial projects. The pending acquisition of Comtech's satellite and space business fits that strategy. This quarter highlighted both the benefits of that move and some timing-related pressures from delayed satellite launches, rescheduled in-flight connectivity deliveries, and a customer bankruptcy. In my view, the results show improving profitability even as top-line growth faces near-term hurdles, which is why the guidance revision drew such attention.
Reported Results
For the third quarter ended September 30, 2026, Gilat Satellite Networks posted revenue of $116.2 million, down about 1% from $117.7 million in the prior-year period and below the consensus estimate of roughly $126 million. Adjusted EBITDA climbed 13% to $17.6 million, and non-GAAP net income rose more than 21% to $14.3 million, or $0.18 per diluted share versus $0.19 a year ago. GAAP net income reached $8.7 million, or $0.11 per diluted share, compared with $8.1 million, or $0.14 per share, a year earlier, partly due to a higher share count after recent equity raises.
Defense revenue jumped 53% to $36.9 million thanks to transportable product deliveries, while Commercial revenue eased 4% to $69.7 million and Peru revenue dropped 54% to $9.6 million. Non-GAAP gross margin improved to 36% from 32%, helped by a stronger defense mix and better results in Peru. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Management cut full-year 2026 guidance to revenue of $455 million to $475 million and adjusted EBITDA of $61 million to $63 million, citing rescheduled IFC terminal deliveries, delayed LEO and GEO satellite launches, and Peru agreements now expected in 2027.
Market Reaction and Investor Sentiment
Shares of Gilat Satellite Networks fell roughly 19% on November 10, 2026, closing near $6.12, as investors focused on the revenue shortfall and reduced outlook. Pre-market trading showed a decline of about 17.6%. The reaction indicates the market had anticipated stronger revenue momentum, and the timing-driven guidance cut raised questions about growth pacing into 2027. Even the non-GAAP EPS beat and defense growth did not offset the top-line disappointment.
Forward Outlook and Key Factors to Monitor
The pending Comtech acquisition remains the central catalyst, with management expecting closure by year-end pending approvals. The deal should significantly expand U.S. defense exposure and more than double defense revenue in 2027. Near-term variables include continued delays in LEO and GEO satellite launches due to capacity constraints, rescheduled IFC deliveries, and the timing of Peru agreements. Currency fluctuations and potential additional bad-debt provisions could also affect margins.
On the positive side, defense demand looks solid with a healthy backlog, and the $100 million convertible notes offering supports liquidity. Investors will watch for updated 2027 guidance and pro forma acquisition data expected in early 2027. From what I see, the balance between defense momentum and commercial headwinds will shape the story ahead.
Exploring Tickeron’s AI Tools
When analyzing names like Gilat Satellite Networks, I often rely on Tickeron’s AI Screener to quickly filter opportunities across the satellite and communications space based on technical patterns, fundamentals, and AI signals. It helps surface comparable ideas without manual effort and supports a more disciplined research process alongside traditional earnings review.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
GILT in upward trend: price expected to rise as it breaks its lower Bollinger Band on November 10, 2026
GILT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 26 of 34 cases where GILT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 76%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for GILT's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 42 of 63 cases where GILT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
Following a +13.47% 3-day Advance, the price is estimated to grow further. Considering data from situations where GILT advanced for three days, in 187 of 261 cases, the price rose further within the following month. The odds of a continued upward trend are 72%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GILT as a result. In 54 of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 71%.
The Moving Average Convergence Divergence Histogram (MACD) for GILT turned negative on November 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 34 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 69%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GILT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.
The Aroon Indicator for GILT entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 11 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.017) is normal, around the industry mean (5.210). P/E Ratio (15.630) is within average values for comparable stocks, (3.688). GILT's Projected Growth (PEG Ratio) (0.060) is slightly lower than the industry average of (0.778). GILT has a moderately high Dividend Yield (0.350) as compared to the industry average of (0.067). P/S Ratio (1.435) is also within normal values, averaging (11.937).
The Tickeron SMR rating for this company is 79 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 82 (best 1 - 100 worst), indicating slightly worse than average price growth. GILT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 90 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GILT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock worse than average.
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General Information
a provider of Internet protocol based digital satellite communication and networking products and services
Industry TelecommunicationsEquipment
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