Gilat to Report Q2 Earnings: Here's What Investors Should Know

What Does Our Model Unveil for GILT?

Our proven model does not predict an earnings beat for Gilat this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

Gilat has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors at Play Ahead of GILT’s Q2 Results

Gilat’s second-quarter performance is likely to have benefited from continued momentum across both its defense and commercial businesses. On the last earnings call, management highlighted sustained demand for next-generation satellite communication solutions as satellite operators and government customers advance VHTS and NGSO programs. The company continues to invest in advanced, interoperable technologies to support evolving satellite communication networks.

Defense remains a key growth driver. Demand for transportable and portable SATCOM solutions continues to increase as military and government customers prioritize mobility, rapid deployment and operational flexibility.

In July 2026, Gilat announced that its Gilat DataPath unit secured $11 million in orders from the U.S. Department of War to provide field services and custom ruggedized SATCOM terminals. In June 2026, Gilat received a multi-million-dollar order from a European Ministry of Defense to supply custom SATCOM terminals.

Commercial operations are also likely to have been supported by in-flight connectivity (IFC). Demand for IFC continues to rise as airlines increasingly adopt NGSO and multi-orbit networks. On the last earnings call, Gilat delivered approximately 750 Sidewinder electronically steered antenna (ESA) terminals, with more than 570 already installed and operational. Boeing achieved an important in-cabin certification milestone for the Sidewinder ESA terminal, with first deliveries expected in the fourth quarter of 2026. The company also announced $39 million of Sidewinder ESA orders during the first quarter, reflecting continued customer confidence in the product.

In June 2026, Gilat announced that it received $43 million in additional orders from a major in-flight connectivity provider for its Sidewinder ESA terminals. The orders, to be delivered over the next 18 months in both line-fit and retrofit configurations, underscore growing demand for multi-orbit, high-performance in-flight connectivity solutions.

The company is also expanding its addressable market through product innovation. Gilat launched the commercially available ESR 2030 terminal for OneWeb's LEO constellation and secured a multimillion-dollar order for solid-state power amplifiers supporting commercial aviation connectivity in the first quarter. In addition, the company signed a multimillion-dollar partnership with Nelco in India to deploy its SkyEdge IV platform for India's first Ka-band service deployment using the JSAT-N2 HTS satellite, strengthening its presence in the Asia-Pacific region.

Technology development remains a strategic priority. During the first quarter, Gilat demonstrated a virtualized SATCOM gateway modem architecture in collaboration with Amazon AWS and other partners, alongside a 5G non-terrestrial network (NTN) demonstration. The company continues to invest in software-defined systems, multi-orbit architectures and 5G NTN capabilities to support next-generation defense, mobility and commercial applications.

However, investors are likely to monitor execution risks. Gilat reported negative operating cash flow during the first quarter due to working capital timing, although management noted it generated approximately $15 million of operating cash over the trailing 12 months. The company also continues investing in next-generation ESA technology, software-defined platforms and 5G NTN development, while defense revenue recognition remains subject to project timing, with deliveries typically occurring six to nine months after orders are booked. This might have negatively impacted the company’s performance in the second quarter.

Key Development

In June 2026, Gilat agreed to acquire the majority of Comtech Telecommunications's Satellite & Space Communications business for $157.5 million in cash. The acquisition is expected to more than double Gilat's defense revenues, expand its U.S. defense and satellite communications capabilities and create a company with projected annual revenue exceeding $700 million, subject to regulatory approvals and expected to close by the end of 2026.

Stocks to Consider

Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Telesat Corporation TSAT currently has an Earnings ESP of +4.88% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

TSAT is scheduled to report quarterly earnings on Aug. 13, 2026. The Zacks Consensus Estimate for TSAT’s to-be-reported quarter’s loss and revenues is pegged at 82 cents per share and $57.1 million, respectively. Shares of TSAT have gained 66.1% in the past year.

Shopify Inc. SHOP has an Earnings ESP of +6.85% and a Zacks Rank #2 at present. SHOP is scheduled to report quarterly figures tomorrow. The Zacks Consensus Estimate for SHOP’s to-be-reported quarter’s earnings and revenues is pegged at 39 cents per share and $3.43 billion, respectively. Shares of SHOP have lost 7.9% in the past year.

Motorola Solutions, Inc. MSI has an Earnings ESP of +0.52% and a Zacks Rank #2 at present. MSI is scheduled to report quarterly figures tomorrow. The Zacks Consensus Estimate for MSI’s to-be-reported quarter’s earnings and revenues is pegged at $3.86 per share and $3 billion, respectively. Shares of MSI have inched up 1.9% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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