Viasat, the satellite communications company, reported fiscal 2026 revenue of approximately $4.64 billion, up from $4.52 billion in the previous year. Revenue growth was supported by expanding government programs, increasing airline connectivity deployments, rising cybersecurity demand, and continued integration of Inmarsat assets.
Despite investments in satellite infrastructure and network expansion, Viasat maintained relatively stable adjusted EBITDA while improving profitability and cash generation. The company also benefited from operational efficiency initiatives as it moved toward completing the ViaSat-3 satellite constellation.
Communication Services Remains Viasat’s Largest Revenue Engine
Communication Services continued to be Viasat’s largest business division, generating more than $825 million in quarterly revenue during fiscal 2026.
Aviation connectivity remained one of the strongest-performing businesses. Revenue from aviation services increased as much as 14 percent during parts of fiscal 2026, supported by growth in connected aircraft, rising average revenue per aircraft, and increasing airline demand for premium in-flight broadband services.
Viasat ended the year with approximately 6,550 commercial and business aviation aircraft in service and a commercial aircraft backlog of about 1,580 aircraft, providing significant visibility into future recurring service revenue. The company expanded its airline presence through “Full, Fast, Free” Wi-Fi offerings with American Airlines and Southwest Airlines.
Maritime connectivity remained stable and continued to benefit from adoption of NexusWave, Viasat’s multi-orbit connectivity platform. The company ended fiscal 2026 with 1,350 vessels in service and an additional 1,500 vessels in backlog, positioning the business for future growth across commercial shipping and offshore markets.
Defense and Advanced Technologies Becomes Major Growth Driver
Defense and Advanced Technologies (DAT) emerged as one of Viasat’s fastest-growing segments during fiscal 2026.
Quarterly DAT revenue exceeded $330 million in several reporting periods and increased between 9 percent and 15 percent year-over-year, driven by strong demand for cybersecurity products, encrypted communications, tactical networking systems, satellite technologies and government defense programs.
The information security and cyber defense business delivered particularly strong momentum. Revenue in some periods increased by as much as 84 percent year-over-year, supported by government modernization initiatives, cybersecurity investments and demand for advanced encryption technologies.
Viasat reported record information security and cyber defense awards of $580 million during fiscal 2026, driven by encryption products and next-generation defense programs.
Government satellite communications also remained a key growth area. Awards exceeded $1 billion during the year, including a multi-year $234 million Southern Positioning Augmentation Network (SouthPAN) contract.
Q4 FY2026 Highlights Strong Order Momentum
Viasat generated $1.2 billion in revenue during the fourth quarter of fiscal 2026, representing a 2 percent increase.
Defense and Advanced Technologies revenue increased 12 percent, supported by information security and cyber defense growth, higher space and mission systems product revenue, and increased service revenue.
Communication Services revenue declined 2 percent due to weakness in Fixed Satellite Services and Other (FS&O) revenues and lower product sales. However, growth in aviation connectivity and government satcom services partially offset the decline.
Quarterly awards reached $1.3 billion, increasing 9 percent.
Communication Services awards rose 13 percent, supported by strong demand from maritime, aviation and government satellite communications customers. Defense and Advanced Technologies awards increased 2 percent due to continued strength in cybersecurity programs.
Record Awards and Backlog Signal Strong Future Demand
Viasat achieved record fiscal 2026 awards of $4.9 billion and ended the year with a record backlog of $4.1 billion, representing a 15 percent increase from the prior year.
Communication Services awards increased 8 percent, while Defense and Advanced Technologies achieved record backlog growth of 23 percent. Communication Services backlog increased 11 percent.
The company reported backlog of approximately $3.97 billion during parts of fiscal 2026 and maintained strong book-to-bill performance. Overall DAT book-to-bill reached approximately 1.5x, with all major business lines exceeding 1.1x, demonstrating continued customer demand across defense, cybersecurity and communications markets.
ViaSat-3 Expansion Strengthens Global Network Strategy
The ViaSat-3 satellite constellation remains the foundation of Viasat’s long-term growth strategy.
During fiscal 2026, the company successfully launched ViaSat-3 Flight 2 and completed all reflector and boom deployments. After fiscal year-end, Viasat launched ViaSat-3 Flight 3, which will provide coverage across the Asia-Pacific region, with service expected to begin during August or September 2026.
Viasat also expanded Arctic coverage using GX10A and GX10B Highly Elliptical Orbit payloads, enabling connectivity services for government, aviation and maritime customers operating in polar regions.
Management believes the combination of geostationary satellites, low Earth orbit capabilities and L-band assets will strengthen network performance, improve resilience and create new revenue opportunities across aviation, government, enterprise and mobility markets.
Capital Expenditure Declines as Satellite Program Nears Completion
One of the most significant financial developments during fiscal 2026 was declining capital expenditure intensity.
Viasat reduced its fiscal 2026 capital expenditure outlook to approximately $1.0 billion to $1.2 billion as major satellite deployment activities neared completion.
Around $250 million of capital spending was associated with completion of the ViaSat-3 constellation, while approximately $400 million related to Inmarsat investments and integration activities.
Management expects capital intensity to decline further over the coming years, supporting stronger free cash flow generation, improved profitability and debt reduction efforts.
With annual revenue of $4.64 billion, record awards of $4.9 billion, backlog of $4.1 billion, growing defense and cybersecurity demand, expanding aviation and maritime connectivity services, and the global rollout of the ViaSat-3 constellation, Viasat is positioning itself for the next phase of growth in satellite communications, government networking and digital connectivity markets.
BABURAJAN KIZHAKEDATH