Can ViaSat-3 Launches Unlock Viasat's Next Growth Phase?

The ViaSat-3 program represents the foundation of Viasat's next-generation global satellite network. During the first quarter of fiscal 2027, ViaSat-3 Flight 2 completed all bus in-orbit testing and is expected to enter commercial service by September 2026. Following quarter-end, Flight 3 completed reflector and boom deployment, entered in-orbit testing and remains on track for commercial service across the Asia-Pacific region in late August or early September 2026. These milestones significantly reduce deployment uncertainty and move the constellation closer to full commercial operation. 

Management believes the additional satellite capacity, broader geographic coverage and flexible beamforming capabilities will improve network efficiency, customer experience and capital utilization while strengthening Viasat's ability to compete across multiple connectivity markets. 

Where New Capacity Could Generate Growth

The expanded ViaSat-3 network is expected to create growth opportunities across several higher-value business segments. In aviation, additional bandwidth should enhance passenger connectivity while supporting airlines seeking more reliable in-flight internet services. Maritime customers may also benefit from improved multi-orbit connectivity through Viasat's NexusWave platform, which continues gaining commercial adoption. Enterprise customers could gain access to broader coverage and higher-capacity services, while government agencies may benefit from more resilient and flexible communications infrastructure. 

Management also expects greater bandwidth availability, flexible beamforming and AI-driven network optimization to improve capacity utilization, lower effective airtime costs and allow network resources to be allocated more efficiently as customer demand evolves. These operational improvements could support higher-value services while improving returns on invested capital over time. 

Execution Remains the Biggest VSAT Test

Although deployment progress has been encouraging, launching satellites represents only the first step in realizing the investment opportunity. The larger challenge is successfully commercializing the expanded network. Investors will closely monitor customer adoption, capacity utilization, pricing, revenue conversion and profitability as ViaSat-3 enters service. Delays in customer onboarding or slower-than-expected monetization could postpone the financial benefits anticipated from the new constellation. 

Competition also remains intense across satellite communications. Viasat competes with Iridium Communications Inc. IRDM and AST SpaceMobile, Inc. ASTS. Iridium continues to benefit from strong demand for its global L-band satellite network serving government, aviation and maritime customers. Meanwhile, AST SpaceMobile is developing a space-based cellular broadband network designed to deliver direct-to-device connectivity through partnerships with mobile network operators. As a result, Viasat must execute successfully while continuing to differentiate its services in an increasingly competitive industry.

How Government Demand Supports the Story

Government demand provides another important source of long-term growth beyond commercial broadband. During the first quarter, Viasat reported approximately $1.3 billion in company-wide awards and record backlog, supported by the next phase of the Protected Tactical SATCOM-Global (PTS-G) program. Management also highlighted growing government SATCOM demand and its largest-ever government opportunity pipeline, reflecting increasing demand for resilient, multi-orbit communications architectures. 

Executives believe future growth will increasingly come from integrated government communications, cybersecurity, tactical networking and advanced space technologies that combine commercial and national security capabilities. These businesses could provide a more diversified revenue base while complementing the commercial opportunities created by the ViaSat-3 constellation. 

How the Zacks Rank Frames This Opportunity

The stock currently carries a Zacks Rank #3 (Hold), reflecting a balanced investment outlook as Viasat enters the next phase of its satellite expansion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Viasat also has a Value Score of B, Growth Score of B, Momentum Score of F and VGM Score of B. The favorable Value and Growth Scores indicate reasonable valuation characteristics and improving long-term business prospects, while the VGM Score of B reflects a balanced combination of value and growth factors. However, the Momentum Score of F suggests weaker momentum characteristics under the Zacks methodology despite the stock's recent advance.

Overall, the successful rollout of the ViaSat-3 constellation has the potential to reshape Viasat's long-term growth profile by expanding capacity across higher-value commercial and government markets. However, commercialization, customer adoption and revenue conversion remain the critical milestones investors should monitor. 

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