Shares of Gilat Satellite Networks (NASDAQ:GILT) fell more than 6% in premarket trading on Wednesday after the company reported quarterly revenue below analyst expectations, despite delivering stronger-than-expected earnings.
The stock declined 6.58% following the earnings announcement as investors focused on the revenue miss and largely unchanged full-year guidance.
Earnings outperform while revenue falls short
Gilat reported adjusted earnings per share of $0.18 for the first quarter, exceeding analyst forecasts of $0.11 per share by $0.07.
Revenue totaled $110.5 million, below the consensus estimate of $114.38 million, although still representing year-on-year growth of 20% from $92 million in the first quarter of 2025.
The satellite networking technology company also posted GAAP net income of $5.2 million, or $0.07 per diluted share, compared with a GAAP net loss of $6 million, or -$0.11 per diluted share, in the same period last year.
Full-year guidance maintained
Gilat reaffirmed its 2026 revenue guidance of between $500 million and $520 million.
The midpoint of the forecast, at $510 million, was broadly in line with analyst expectations of $509.5 million.
The company also maintained its adjusted EBITDA outlook for the year at between $61 million and $66 million, implying approximately 19% growth at the midpoint of the range.
Profitability improves sharply
Adjusted EBITDA for the quarter doubled to $15.1 million from $7.6 million in the first quarter of 2025.
GAAP operating income reached $4.4 million, compared with a GAAP operating loss of $2.7 million in the prior-year quarter.
“Gilat began 2026 with strong execution and momentum across our key growth initiatives,” said Adi Sfadia, chief executive officer of Gilat.
“Our first quarter results reflected the strength of our broad solutions portfolio, continued expansion in defense and commercial markets, and improving profitability.”
Growth recorded across business segments
The company reported commercial revenue of $72.8 million during the quarter.
Defense revenue totaled $25.4 million, while revenue from Peru operations reached $12.3 million.