Abstract
Gilat Satellite Networks will release its latest quarterly results on February 10, 2026 Pre-Market; this preview consolidates the company’s guidance and external estimates from October 21, 2025 to February 03, 2026 to frame revenue, profitability, and adjusted EPS expectations.
Market Forecast
For the current quarter, forecasts compiled from the latest company-facing financial data point to revenue of USD 133.06 million, EBIT of USD 11.28 million, and adjusted EPS of USD 0.14, implying year-over-year growth of 61.87% for revenue and 22.17% for EBIT, while adjusted EPS is expected to decline by 14.58% year over year. The company’s margin profile is expected to reflect continued investment and mix effects; gross profit margin and net profit margin guidance was not formally provided for this quarter, but the previous quarter’s gross margin was 29.51% and net profit margin was 6.88%.
The main business is centered on Satellite Networks, Integrated Solutions, and Network Infrastructure and Services, with Satellite Networks remaining the core revenue engine; management continues to point to robust project execution and backlog conversion as demand remains stable among enterprise and mobility customers. The most promising segment is Satellite Networks at USD 49.06 million last quarter, supported by multi-year program deliveries and mobility connectivity deployments, although detailed year-over-year growth figures were not disclosed in the latest dataset.
Last Quarter Review
In the prior quarter, Gilat Satellite Networks delivered revenue of USD 117.69 million, a gross profit margin of 29.51%, GAAP net profit attributable to the parent company of USD 8.10 million, a net profit margin of 6.88%, and adjusted EPS of USD 0.19, with revenue up 57.74% year over year and adjusted EPS up 58.33% year over year.
A notable highlight was operating performance outpacing expectations, with EBIT of USD 12.85 million versus an estimate of USD 8.53 million, reflecting solid conversion of backlog and disciplined execution on long-cycle contracts. Main business highlights showed Satellite Networks at USD 49.06 million, Integrated Solutions at USD 17.26 million, and Network Infrastructure and Services at USD 11.81 million; segment-level year-over-year detail was not disclosed, but mix skewed toward Satellite Networks.
Current Quarter Outlook
Satellite Networks: Core Delivery Momentum and Mix Considerations
Satellite Networks is positioned to remain the largest revenue contributor this quarter, following USD 49.06 million in the prior quarter. The quarter’s revenue estimate for the group overall is USD 133.06 million, and internal project timing suggests Satellite Networks will again carry the majority of the load. Given the year-over-year revenue growth expectation of 61.87%, management’s focus will likely be on converting contracted backlog, executing mobility and enterprise network rollouts, and balancing hardware shipments with software and services to protect margin.
Margin dynamics within Satellite Networks can be sensitive to product and customer mix, with larger hardware deployments potentially diluting gross margin compared to software-rich releases. The last quarter registered a gross margin of 29.51% and a net margin of 6.88%; a similar range could materialize if mix continues to include significant equipment deliveries. Pricing discipline and supply chain costs will be watched closely, as any additional freight or component inflation could pressure gross margin despite higher volumes.
Program timing is the key swing factor. If several large milestones are recognized late in the quarter, this can elevate revenue while leaving operating margin more dependent on fixed-cost absorption. A steady cadence of deliveries across the quarter would benefit both margin and working capital. Management’s comments in recent periods have emphasized backlog health, and the strong prior-quarter EBIT beat suggests execution quality that could carry into the current quarter.
Integrated Solutions: Services Attachment and Profitability Levers
Integrated Solutions recorded USD 17.26 million in the prior quarter and typically combines project integration, managed services, and solution customization. In the current quarter, a rising attach rate of managed services to hardware deployments could provide recurring revenue durability, helping offset any margin variability from equipment-heavy projects. The revenue estimate at the group level implies broad-based expansion, and Integrated Solutions is likely to ride the coattails of Satellite Networks deployments by bundling implementation and ongoing support.
The primary profitability lever here is services mix. Higher services content tends to yield better gross margin percentages versus pure equipment sales. If customer demand trends favor turnkey solutions, gross margin could stabilize even as revenue scales. However, new region implementations can introduce upfront costs that temporarily weigh on operating margins. With EPS forecasts at USD 0.14, down 14.58% year over year despite revenue growth, investors should monitor whether services mix and operating efficiency are sufficient to sustain earnings conversion.
Execution risks primarily revolve around project timing and labor availability, especially when multiple large customers ramp concurrently. Successful coordination across supply chain, field engineering, and customer acceptance processes is essential. The prior quarter’s EBIT outperformance indicates operational resilience, but any slippage in solution acceptance or added rework could trim margin this quarter.
Network Infrastructure and Services: Base Load and Quality of Earnings
Network Infrastructure and Services contributed USD 11.81 million last quarter and tends to serve as a base load for recurring revenue, maintenance, and upgrades. In the current quarter, continued stability in infrastructure services can support cash generation and reduce volatility in earnings, complementing higher-variance equipment shipments in other segments. While relatively smaller, this unit’s predictable revenue stream can improve the quality of earnings, smoothing quarter-to-quarter swings in operating margin.
A focus area is service-level agreement performance and customer satisfaction metrics, which, while not directly quantified here, influence renewal rates and incremental upgrade opportunities. If renewal and upsell momentum remains intact, this segment can provide steady gross margin that helps offset the EPS headwind implied by the quarter’s forecast. The combination of recurring services and selective infrastructure upgrades can contribute to operating leverage, especially when larger projects in Satellite Networks drive utilization of shared resources.
Risks this quarter include cost inflation and the potential for extended customer decision cycles in upgrades, which can push revenue recognition into later periods. Even modest delays can affect quarterly EPS given the relatively lean margin structure compared with larger project work. Efficient resource planning and prioritization of higher-margin service engagements will be important to maintain profitability.
Stock Price Drivers: Revenue Scale vs. Earnings Conversion
The dominant stock price driver this quarter is the trade-off between revenue scale and earnings conversion. Forecasts imply a sharp year-over-year increase in revenue to USD 133.06 million, yet adjusted EPS of USD 0.14 is expected to decline by 14.58%, highlighting margin and mix considerations. Investors will parse gross margin drivers, cost discipline, and the extent to which services and software content offset the dilution from hardware-heavy deliveries.
Operating performance, measured by EBIT estimated at USD 11.28 million and year-over-year growth of 22.17%, will be evaluated relative to working capital demands associated with large projects. If backlog conversion remains robust and operating expenses stay aligned with revenue growth, incremental margin could surprise positively. Conversely, any supply chain friction or higher cost-to-serve in complex deployments could pressure EPS even as top-line expands.
Guidance commentary will be pivotal. Clarity on the timing of large milestones, services attachment, and the forward backlog trajectory will influence sentiment. Given the prior quarter’s significant revenue beat and EBIT outperformance, the market may be inclined to grant some benefit of the doubt on execution, while reserving judgment on earnings conversion until margin details and segment mix are disclosed.
Analyst Opinions
Across the limited institutional commentary collected within the October 21, 2025 to February 03, 2026 window, the ratio of bullish to bearish views tilts mildly positive, with the majority stance emphasizing revenue acceleration and operational execution while acknowledging EPS pressure. The constructive camp highlights the prior quarter’s upside on revenue and EBIT and anticipates sustained backlog conversion supporting the USD 133.06 million revenue estimate and USD 11.28 million EBIT forecast. Views in this camp see margin stabilization possible if services content rises in Integrated Solutions and if Satellite Networks deliveries avoid late-quarter lumpiness.
Representative perspectives from sell-side and independent analysts align on cautious optimism: expectations center on top-line expansion, operational discipline, and incremental margin improvement contingent on mix. The majority view also underscores the sensitivity of adjusted EPS to gross margin and cost-to-serve dynamics, noting the forecasted EPS of USD 0.14 indicates near-term pressure despite revenue growth of 61.87% year over year. Those holding the cautiously positive stance suggest near-term volatility is likely tied to milestone timing and the balance between equipment and services, with upside skew if execution mirrors the prior quarter’s performance.
The minority, more reserved views caution that the projected decline in adjusted EPS year over year reflects potential cost inflation, services ramp costs, or heavier equipment mix, and they look for explicit guidance on gross margin and cash conversion. However, the prevailing consensus leans toward revenue momentum and solid operational control, framing expectations for Gilat Satellite Networks as constructive heading into February 10, 2026 Pre-Market results.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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