Viasat’s second quarter results disappointed the market, with revenue falling short of Wall Street expectations and shares declining following the announcement. Management attributed the underperformance to ongoing challenges in certain commercial services, including continued declines in fixed broadband subscribers and slower-than-expected maritime installations. CEO Mark Dankberg emphasized that growth within the Defense and Advanced Technology (DAT) segment, particularly new contract awards and backlog, partially offset these pressures. He highlighted, “We continue to drive good cash performance with positive free cash flow of $72 million, up 19%.”
Is now the time to buy VSAT? Find out in our full research report (it’s free for active Edge members).
Viasat (VSAT) Q2 CY2026 Highlights:
- Revenue: $1.16 billion vs analyst estimates of $1.21 billion (1.2% year-on-year decline, 4.4% miss)
- Adjusted EPS: $0.17 vs analyst estimates of $0.10 (78.9% beat)
- Adjusted EBITDA: $381.1 million vs analyst estimates of $383.3 million (33% margin, 0.6% miss)
- Operating Margin: 4.1%, in line with the same quarter last year
- Market Capitalization: $11.69 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Viasat’s Q2 Earnings Call
- Timothy Horan (Oppenheimer) asked about spectrum ownership and negotiating leverage with governments. CEO Mark Dankberg explained that maintaining active use of licensed spectrum for public benefit supports their position but declined to predict outcomes, citing ongoing engagement with regulators.
- Brent Penter (Raymond James) questioned capacity allocation from new satellites and revenue drivers. Dankberg outlined that aviation and government mobility, supported by increased bandwidth per platform, will be primary beneficiaries, with some capacity also directed to fixed markets.
- James Ratzer (New Street Research) sought clarity on the Equatys constellation and its potential capacity. Dankberg said the next major update would follow funding for the constellation, estimating orders-of-magnitude increases in capacity, particularly for enterprise and government markets.
- Sebastiano Petti (JPMorgan) inquired about the ongoing DAT strategic review and spectrum monetization. Dankberg stated the review is ongoing due to a dynamic environment and aims to maximize shareholder value, without committing to a separation or spectrum sale.
- Ryan Koontz (Needham & Company) asked about underperformance in maritime and drivers for space systems growth. Dankberg cited installation logistics and distribution fragmentation as near-term maritime issues, while highlighting mission systems and new government opportunities as bright spots for space systems.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will focus on (1) the operational ramp and customer adoption of ViaSat-3 satellites, (2) the pace and quality of new DAT segment contract wins, especially in tactical networking and mission systems, and (3) signs of stabilization or improvement in challenged commercial segments, particularly fixed broadband and maritime. Progress on the Equatys constellation and any strategic decisions regarding business separation will also be key markers.
Viasat currently trades at $85.55, in line with $86.16 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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