Gilat stock plummeted 15%, despite Q4 earnings surpassing expectations and strong guidance for 2026

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Israel PetaTikva - Gilat Satellite Networks Ltd. (NASDAQ:GILT) reported fourth-quarter earnings that exceeded analyst expectations, with strong revenue growth and an optimistic outlook for 2026.

However, following the earnings release, the company’s stock plummeted 15.27% in pre-market trading.

The satellite network technology provider reported adjusted earnings per share of $0.20 for the quarter, significantly above the consensus estimate of $0.13. Revenue reached $137 million, surpassing the $132.61 million forecast and up 75% from $78.1 million in the same period last year. The company’s adjusted EBITDA for the fourth quarter was $18.2 million, a 50% increase year-over-year.

Despite these positive results, investor reaction to the earnings report was negative. The stock declined sharply after the announcement, indicating that market participants may have higher expectations or concerns regarding other aspects of the financial performance.

“We closed 2025 with a very strong fourth quarter and solid full-year results, reflecting the company’s robust execution across all areas, primarily driven by our key growth engines, including defense, in-flight connectivity (IFC), and advanced multi-orbit solutions,” said Gilat CEO Adi Sfadia.

For the full year 2025, Gilat reported revenue of $451.7 million, a 48% increase from 2024, with a record adjusted EBITDA of $53.2 million, up 26%.

Looking ahead, Gilat provided an optimistic outlook for 2026, expecting revenue between $500 million and $520 million, representing approximately 13% growth at the midpoint. The company also anticipates adjusted EBITDA between $61 million and $66 million, with a midpoint growth rate of about 19%.

Sfadia added, “With a solid balance sheet and over $183 million in net cash, we continue to explore additional growth opportunities and potential targets.”

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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