Israel satellite networking firm Gilat's Q1 revenue rises less than expected

Overview

• Israel satellite networking firm's Q1 revenue rose 20% yr/yr but missed analyst expectations

• Q1 net income turned positive from a loss in prior year

• Company reiterated 2026 guidance citing strong demand in defense and commercial markets

Outlook

• Gilat expects 2026 revenue between $500 mln and $520 mln

• Company sees 2026 adjusted EBITDA between $61 mln and $66 mln

• Gilat says backlog and pipeline remain strong, reaffirming full-year 2026 outlook

Result Drivers

• DEFENSE EXPANSION - Co said Q1 growth was driven by expanding its defense footprint into more countries and increased demand for portable gateway solutions

• COMMERCIAL CONTRACTS - Co cited strengthened commercial relationships in India and new orders from U.S. and European clients as supporting revenue growth

• PRODUCT DEMAND - Co said demand for virtualized network solutions, in-flight connectivity, and electronically steered antennas contributed to growth

Company press release: ID:nGNX9kVjnG

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy"

• Wall Street's median 12-month price target for Gilat Satellite Networks Ltd is $19.00, about 4.6% below its May 12 closing price of $19.91

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 35 three months ago

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