Gilat beats EPS estimates but cuts 2026 revenue outlook

By Tom Whitfield

Nasdaq-listed Gilat Satellite Networks (GILT) reported adjusted EPS of $0.18 for the third quarter of 2026, beating FiscalAI’s $0.14 consensus estimate by $0.04, while revenue of $116.23 million missed the $126.54 million forecast. The company released the quarterly data on Tuesday.

What did Gilat earn?

• Adjusted EBITDA rose 13% year over year to $17.6 million, and its adjusted EBITDA margin expanded to approximately 15% despite a 1% revenue decline.
• Gross margin improved to 35% from 30% a year earlier, while non-GAAP net income increased 21% to $14.3 million.
• Return on equity reached 10.12%, and net margin stood at 6.21%.
• Revenue of $116.23 million compared with $117.7 million a year earlier and the $126.54 million analyst consensus.

FiscalAI cited a $0.14 consensus estimate for EPS, while a later results summary cited Zacks at $0.17. The materials do not reconcile those benchmarks. Gilat’s $0.18 result beat both, although the company still produced less revenue than expected.

Takeaway: Better margins and adjusted earnings did not repair the revenue miss.

Why did Gilat cut 2026 guidance?

Gilat reduced its 2026 revenue outlook to $455 million–$475 million from $500 million–$520 million. Management tied the cut to:

• delayed GEO/LEO launches and satellite-development schedules;
• rescheduled customer and terminal deliveries; and
• commercial order timing that shifts revenue into 2027 and beyond.

The materials also identify Peru revenue moving into 2027. The revised range sits below the cited $507.5 million consensus, and Gilat gave no quarterly phasing for the deferred business. Its adjusted EBITDA guidance narrowed to $61 million–$63 million, which management supported with favorable business mix and cost savings.

Takeaway: Cost savings cushion a revenue outlook that management has pushed toward later years.

What is the defense and acquisition contribution?

Defense revenue grew 53% year over year to $36.9 million, driven by transportable product deliveries. Management also cited a defense award exceeding $32 million and additional U.S. Department of War orders exceeding $8 million.

The pending Comtech Satellite and Space acquisition remains subject to remaining U.S. regulatory approvals. Management expects those approvals before year-end and says the deal remains on track to close. Gilat expects the acquired business to contribute more than $180 million in revenue and more than $18 million in adjusted EBITDA, with most of the business oriented toward defense.

The materials say the acquisition could more than double Gilat’s defense revenue in 2027. That benefit still depends on regulatory clearance, closing and execution; management did not provide a detailed integration timetable or quantify the associated costs.

Takeaway: Defense provides the clearest near-term growth, but the larger acquisition case remains conditional.

How did the market and analysts respond?

Shares fell $1.49 to $6.09 in midday trading Tuesday. Trading volume reached 1,907,068 shares, above the average of 829,341. The stock’s 12-month range was $5.96–$20.93, its 50-day moving average $8.93 and its 200-day moving average $13.53. Gilat had a market capitalization of $449.99 million, a P/E ratio of 13.82 and a beta of 1.15.

On Monday, September 14, Weiss Ratings reissued a “hold (c)” rating. MarketBeat data listed one Strong Buy, one Buy and two Hold ratings, producing a “Moderate Buy” average and a $20.00 consensus target. The four-rating count offers limited breadth, and the materials supply no fresh target revisions or rationale beyond the published ratings.

Takeaway: The market reaction was negative, while a small analyst sample remained split.

What does Gilat sell?

Gilat is an Israel-based provider of satellite networking technology and services. It develops and supplies very small aperture terminal systems, satellite hubs, antennas, modems and related ground infrastructure for broadband and other communications services.

Customers include telecommunications operators, internet service providers, enterprises, governments and defense organizations. Applications include cellular backhaul and access, enterprise networking, community broadband, in-flight connectivity, maritime communications and mobility, particularly where terrestrial networks cannot provide sufficient coverage.

The product breadth explains why launch timing, delivery schedules and customer order timing can move revenue between quarters or years. It does not remove those dependencies, and the company’s own forecast shows that timing effects can outweigh underlying defense demand.

Takeaway: Gilat owns broad satellite-networking assets, but its reported results remain sensitive to deployment schedules.