Viasat Inc (VSAT) · Nov 5, 2026 · Earnings
Viasat earnings beat adjusted EPS but cut FY27 EBITDA outlook
In line — adj. EPS -$0.32 vs ~-$0.42 consensus; revenue $1.18B vs ~$1.20B
Viasat’s Q2 earnings show sharp Defense growth and better cash flow, but weaker communications results push FY27 EBITDA guidance down to flat.
Viasat is moving from a capital-heavy satellite buildout toward monetizing its ViaSat-3 network, growing Defense and Advanced Technologies, and reducing debt. The prior FY2027 framework called for mid-single-digit revenue growth, Adjusted EBITDA flat to up slightly, $950 million–$1.0 billion of capital spending, and roughly $180 million of free cash flow; the new filing keeps revenue growth intact but changes the quality of that outlook.
The quarter was mixed rather than a clean beat. Adjusted EPS of negative $0.32 was better than the published consensus of roughly negative $0.42, but revenue of $1.18 billion was modestly below the approximately $1.20 billion expectation. Adjusted EBITDA fell 4% year over year, so the operating result does not support calling the quarter broadly ahead of plan.
| Figure | Q2 FY27 | Q2 FY26 | Consensus / comparison |
|---|
| Revenue (Financial Results) | $1,180.0M | $1,140.9M | ~$1,200M |
| Adj. diluted EPS (Financial Results) | -$0.32 | $0.09 | ~-$0.42 |
| Adjusted EBITDA (Financial Results) | $369.9M | $384.7M | |
| Communication Services revenue (Segment Results) | $814.5M | $836.7M | |
| Defense & Advanced Technologies revenue (Segment Results) | $365.5M | $304.2M | |
| Free cash flow (Cash Flow statement) | $78.3M | $68.5M | |
| Net leverage ratio (Non-GAAP reconciliation) | 3.2x | 3.5x | |
Defense is now the clear growth engine. DAT revenue rose 20%, Adjusted EBITDA jumped 57%, and backlog reached a record $1.4 billion, with tactical networking and information-security products doing the heavy lifting. The filing says, “Defense and Advanced Technologies revenues increased 20% YoY, reflecting strong growth in information security and cyber defense and tactical networking product revenue, and an increase in segment service revenue.” 〔0〕 That gives the company a credible growth path beyond legacy connectivity services.
The legacy communications business is still absorbing the transition. Communication Services revenue declined 3% and segment Adjusted EBITDA dropped 13%, as fixed services and other and maritime weakness outweighed growth in aviation and government satcom. The filing explicitly describes the decline as expected, but expected weakness is still weighing on consolidated profitability: “Communication Services revenues declined 3% YoY, reflecting expected declines in FS&O, total segment product revenue, and maritime revenue partially offset by growth in aviation and government satcom.” 〔1〕
The most important change is the full-year EBITDA reset. Viasat now expects FY2027 Adjusted EBITDA to be about flat year over year, down from the previous “flat to up slightly” framework. That is a modest but real downgrade to the earnings trajectory, even though the company still expects mid-single-digit revenue growth and stronger second-half performance. It also now expects Communications Services revenue to be flattish, while raising the DAT growth outlook to the mid-to-high teens.
Cash generation and leverage are improving, but partly through lower investment. Free cash flow rose 14% to $78 million, net debt fell to $4.8 billion, and leverage improved to 3.2x. At the same time, FY2027 capital-expenditure guidance was reduced to $850 million–$900 million from $950 million–$1.0 billion, while free-cash-flow guidance increased to more than $225 million from roughly $180 million. That is helpful for deleveraging, but it also means the improved cash outlook is not purely an operating upside story.
The ViaSat-3 milestone removes a major execution overhang, but monetization remains ahead. Flights 2 and 3 entered service and are performing as expected, marking the transition from building the network to filling it with customers and revenue. The filing says, “Both ViaSat-3 (VS-3) Flight 2 and Flight 3 entered service and are performing as expected.” 〔2〕 That is strategically meaningful, but the quarter still shows the older Communications Services portfolio declining while the newer assets are being commercialized.
Bottom line: Viasat’s business mix is improving because Defense is growing rapidly and cash flow is strengthening, but the quarter does not yet prove that the satellite investment cycle has translated into broad-based earnings growth. The modest EPS upside is outweighed by communications weakness and a slightly lower full-year EBITDA outlook, making this a mixed, mildly negative update for the operating story.
What to watch next
Q3 FY2027 earnings report
Original filing on SEC EDGAR
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