Abstract
Gilat Satellite Networks will report first-quarter 2026 results on May 13, 2026 Pre-Market, with the market looking for mid-teens revenue growth and a small positive adjusted EPS as investors weigh recent order momentum against a temporary EBIT dip.
Market Forecast
For the first quarter of 2026, consensus now points to revenue of 114.56 million US dollars, implying 14.33% year-over-year growth, adjusted EPS of 0.04, up 49.98% year over year, and EBIT of approximately -1.02 million US dollars, reflecting a year-over-year change of -129.93% that suggests a modest operating loss as investments and mix temporarily weigh on profitability; explicit forecasts for gross profit margin and net margin have not been provided. The company’s main business mix remains anchored by Commercial, Mobility, and Peru programs, and management’s full-year 2026 revenue outlook of 500.00–520.00 million US dollars sets a constructive backdrop for the near-term quarterly trajectory. Within that mix, Mobility is positioned as the most promising growth engine at 100.43 million US dollars of recent segment revenue, supported by new program wins and awards that are expected to convert into shipments over the next several quarters.
Last Quarter Review
In the fourth quarter of 2025, Gilat Satellite Networks delivered revenue of 136.96 million US dollars, up 75.30% year over year, with a gross profit margin of 27.96%, GAAP net profit attributable to shareholders of 8.79 million US dollars and a net profit margin of 6.42%, while adjusted EPS was 0.20, down 4.76% year over year. Net profit improved on a sequential basis, with quarter-on-quarter growth of 8.56%, as the mix of shipments and operating discipline supported bottom-line progression. Revenue exceeded projections by 3.90 million US dollars, reflecting solid execution and healthy backlog conversion. By business, recent period contributions were led by Commercial at 281.35 million US dollars, Mobility at 100.43 million US dollars, and Peru at 69.88 million US dollars, with the mix underscoring the breadth of demand across corporate, aviation, and governmental programs.
Current Quarter Outlook
Main business: Commercial programs and broader project deliveries
The Commercial portfolio remains the core of the company’s near-term revenue base, providing scale and consistent shipment cadence that underpin the consensus call for 114.56 million US dollars in first-quarter revenue. The fourth-quarter gross margin of 27.96% establishes a reference point for profitability, but margin in the current quarter will hinge on the balance between hardware-heavy deliveries and higher-value software and services. Given the forecast of a modest operating loss, the market appears to assume a mix shift toward lower-margin hardware and timing effects that can temporarily depress EBIT, even as revenue grows year over year by 14.33%. The main swing factor within Commercial is delivery timing on multi-site and multi-region projects, where a small slippage can shift recognition from the first to the second quarter, influencing quarterly margins more than annual. Operating leverage remains within reach, but quarter-to-quarter noise should be expected as backlog converts and as the company continues to support deployments across geographies.
Most promising business: Mobility and in-flight connectivity momentum
Mobility, which includes in-flight connectivity terminals and high‑power amplifier solutions, continues to show the strongest forward-looking demand signals, with recent reported orders including a 39.00 million US dollars award for electronically steered antenna terminals and a separate multi‑million‑dollar award for wideband amplifiers. These awards are scheduled for delivery across the next 12 to 24 months and will seed sequential growth as production ramps and customer integration milestones are met. In the near term, revenue recognition from these wins may be limited by customer deployment schedules and certification timelines; however, the associated backlog supports higher shipment volumes in subsequent quarters and improves medium-term visibility. Profit contribution from Mobility will depend on the mix between terminal platforms and RF amplifier shipments, the cadence of services attach, and the scale benefits realized as volumes build; each of these can lift margin above the company average in later quarters once initial program costs normalize. Within the quarter being reported, the Mobility segment’s contribution should be supported by ongoing deliveries to existing aviation and defense customers, but investors should expect the fuller revenue and margin impact to become more visible beyond the first quarter.
Key stock-price drivers this quarter
The most immediate share-price driver is the conversion rate of orders into recognized revenue and gross profit within the quarter; consensus expects revenue growth of 14.33% year over year and an adjusted EPS of 0.04, and deviations will likely be driven by shipment timing and product mix. Margin sensitivity will be elevated, as the forecasted EBIT of -1.02 million US dollars implies that a one to two point change in gross margin could determine whether operating income prints positive or negative for the quarter. News flow around new awards, government and defense program expansions, and strategic collaborations can also influence sentiment, as seen in recent contract announcements that add to backlog and signal demand durability. Management commentary on the pacing of Mobility and Commercial deployments, combined with clarity on operating expense trends and investment needs for key platforms, will shape expectations for the second quarter and the slope of margin recovery through 2026. Finally, the reaffirmation or refinement of the full-year 2026 revenue outlook of 500.00–520.00 million US dollars would offer a top‑down anchor for quarterly modeling and could compress or widen valuation dispersion depending on how Q1 results track against that path.
Analyst Opinions
Bullish views dominate the recent commentary landscape, driven by a combination of strong fourth‑quarter execution, a constructive full‑year 2026 revenue outlook, and a tangible step‑up in orders for Mobility and defense‑related programs. Sell‑side and market commentary emphasize that new awards and a robust backlog provide visibility into sequential revenue conversion, while the consensus forecast for 114.56 million US dollars in first‑quarter revenue and 0.04 in adjusted EPS suggests confidence in year‑over‑year growth despite a temporary EBIT trough. A Needham-hosted investor discussion with analyst Ryan Koontz in January underscored active coverage and investor engagement around the company’s product pipeline and government program activity, reinforcing a positive stance on the near-term setup. Additional market updates highlighting pre‑market share gains around contract news further reflect constructive sentiment. Overall, the ratio of bullish to bearish commentary in the collected period skews decisively toward the bullish side, with institutional narratives centering on backlog conversion, Mobility program wins, and the potential for margin improvement as mix normalizes across 2026.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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