GET DAILY SIGNALSViasat (VSAT) Reports +3% Revenue Growth in Q2 but Widens Net Loss
Key Takeaways
- Viasat reported second quarter fiscal year 2027 revenue of $1.2 billion, up 3% year over year, roughly in line with consensus expectations.
- Net loss widened to $129 million from $61 million a year ago, driven by a higher tax provision, increased research and development (R&D) spend, and higher stock-based compensation.
- Adjusted EBITDA fell 4% to $370 million, as Defense and Advanced Technologies growth was offset by Communication Services pressure.
- Free cash flow rose 14% to $78 million, while net leverage improved to 3.2x trailing adjusted EBITDA.
- Management now expects roughly flat adjusted EBITDA for fiscal 2027 and free cash flow above $225 million.
Earnings Context and Why It Matters
Viasat's latest quarterly results arrive at a pivotal moment for the satellite communications company. The firm is transitioning away from the capital-intensive ViaSat-3 satellite buildout and toward a more cash-generative model, with both ViaSat-3 Flight 2 and Flight 3 now in service. Investors are closely watching whether accelerating Defense and Advanced Technologies demand can offset near-term softness in Communication Services, including residential broadband and maritime. The report also serves as a check on Viasat's deleveraging progress and its aviation franchise, which faces shifting airline-customer dynamics. For shareholders, the quarter offers a clearer read on margin trajectory, backlog quality, and whether the company's strategic review is translating into measurable value. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
For the second quarter of fiscal year 2027, ended September 30, 2026, Viasat reported total revenue of $1.2 billion, a 3% increase year over year. The gain was driven by a 20% rise in Defense and Advanced Technologies revenue, partially offset by a 3% decline in Communication Services revenue to $815 million. Within Communication Services, aviation and government SATCOM grew, while residential fixed broadband and maritime declined.
Net loss was $129 million, compared with a net loss of $61 million in the prior-year period. Adjusted EBITDA decreased 4% to $370 million. Free cash flow improved 14% to $78 million, supported by operating cash flow of $285 million and capital expenditures of $207 million. Total awards of $1.1 billion declined 24% year over year against a difficult comparison that included a large prior-year SouthPAN award, while backlog rose 7% to $4.2 billion. Net leverage improved by 0.3x to 3.2x trailing adjusted EBITDA.
Market Reaction and Investor Sentiment
The market's initial response reflected a mixed quarter: solid revenue and improving cash flow were tempered by a wider net loss, softer Communication Services results, and a lowered full-year adjusted EBITDA outlook. Management's shift to "approximately flat" fiscal 2027 EBITDA — attributed to segment mix, award timing, and growth investments — is likely to weigh on sentiment, even as the Defense and Advanced Technologies segment shows clear momentum. The disclosed expectation that recent airline-customer announcements could ultimately affect 15% to 20% of aviation revenue adds another layer of caution. Investors appear focused on whether cash generation and deleveraging can continue improving despite near-term top-line pressure.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors should watch how Viasat balances its two segments. Defense and Advanced Technologies is now the growth engine, with management anticipating mid-teens or better full-year revenue growth and roughly $2 billion in fiscal 2027 awards. A key question is whether this momentum can persist as the company moves up-market into mission systems and space vehicles.
On the Communication Services side, the aviation business remains central. Management flagged that recent customer announcements could affect 15% to 20% of aviation revenue over time, so installation pace, backlog conversion, and new award activity will be closely monitored. Maritime and residential fixed broadband also remain areas to watch as the company seeks to stabilize subscribers and improve yields.
Finally, cash flow and the balance sheet are pivotal. With capital expenditures guided to $850–$900 million and free cash flow expected above $225 million for the full year, investors will assess whether Viasat can sustain deleveraging — its net leverage ratio improved to 3.2x — while still funding innovation in areas like direct-to-device and multi-orbit aviation. From what I see, this balance between growth segments and cash discipline will define the next several quarters.
My Experience with Tickeron’s AI Screener
In my own research process, I often turn to Tickeron’s AI Screener to quickly filter stocks by industry, technical patterns, and fundamentals. It helps surface relevant peers and emerging setups without manual effort, which is particularly useful when evaluating names like Viasat alongside broader sector trends. The tool has become a regular part of how I cross-check ideas and identify potential comparisons before diving deeper into earnings or guidance details.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
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.
VSAT's Indicator enters downward trend
The Aroon Indicator for VSAT entered a downward trend on October 27, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 191 similar instances where the Aroon Indicator formed such a pattern. In 164 of the 191 cases the stock moved lower. This puts the odds of a downward move at 86%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for VSAT turned negative on November 06, 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 52 similar instances when the indicator turned negative. In 44 of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at 85%.
VSAT moved below its 50-day moving average on November 04, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where VSAT 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 82%.
VSAT broke above its upper Bollinger Band on October 28, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where VSAT's RSI Indicator exited the oversold zone, 21 of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 70%.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on VSAT as a result. In 76 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 84%.
The 10-day moving average for VSAT crossed bullishly above the 50-day moving average on November 04, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 15 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 83%.
Following a +17.88% 3-day Advance, the price is estimated to grow further. Considering data from situations where VSAT advanced for three days, in 221 of 286 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 3 (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 (1.899) is normal, around the industry mean (5.526). VSAT's P/E Ratio (-319.750) is considerably lower than the industry average of (4.359). VSAT's Projected Growth (PEG Ratio) (0.030) is slightly lower than the industry average of (0.778). Dividend Yield (0.000) settles around the average of (0.127) among similar stocks. P/S Ratio (2.091) is also within normal values, averaging (11.937).
The Tickeron PE Growth Rating for this company is 35 (best 1 - 100 worst), pointing to consistent 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 Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating steady price growth. VSAT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 89 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. VSAT’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.
The Tickeron SMR rating for this company is 91 (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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a producer of digital satellite communications, other wireless networking and signal processing equipment and products
Industry TelecommunicationsEquipment
Advertisement