Gilat Satellite Networks (GILT) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $116.2M, down 1% YoY; Adjusted EBITDA rose 13% to $17.6M, with defense revenue up 53% YoY.

• Commercial program and satellite launch delays shifted expected orders and revenue into 2027 and beyond, while defense growth and margin gains partly offset softer commercial activity.

• FY2026 revenue guidance was reduced to $455M–$475M from $500M–$520M; Adjusted EBITDA guidance is $61M–$63M.

• Strategy focuses on defense and space expansion, commercial profitability, and the pending Comtech acquisition.

Financial highlights

• Q3 GAAP gross margin was 35%, up from 30%; GAAP operating income was $7.9M versus $7.5M, and net income was $8.7M versus $8.1M.

• Q3 diluted GAAP EPS was $0.11 versus $0.14 YoY, reflecting a higher share count following equity raises.

• Q3 non-GAAP gross margin was 36% versus 32%; non-GAAP operating income rose 14% to $14.6M and net income rose 21% to $14.3M from $11.8M.

• Q3 non-GAAP diluted EPS was $0.18 versus $0.19 YoY; Adjusted EBITDA margin expanded to 15% from 13%.

• 9M 2026 revenue was $349.4M and Adjusted EBITDA was $48.1M, up 37% YoY on revenue growth of 11%.

Outlook and guidance

• FY2026 revenue guidance is $455M–$475M, representing 3% YoY growth at the midpoint; Adjusted EBITDA guidance is $61M–$63M, up 17% at the midpoint and excluding Comtech.

• FY2026 segment revenue guidance: Commercial $275M–$285M; Defense $125M–$130M, up 27% at the midpoint; Peru $55M–$60M, down 18%.

• Lower expected Q4 order intake reflects GEO/LEO launch delays, rescheduled IFC deliveries, and Peru agreement timing; related revenue is expected in 2027 and later.

• Boeing Sidewinder line-fit certification and first delivery were expected before year-end; Airbus certification and delivery were expected afterward.

• Comtech and pro forma information, alongside 2027 guidance, was planned for early February 2027.