Gilat Satellite Networks Ltd. (NASDAQ:GILT) shares are trading lower on Wednesday after the company reported second-quarter results.

• Gilat Satellite Networks stock is taking a hit today. What’s weighing on GILT shares?

Earnings Snapshot

Revenue rose to $122.7 million from $105 million in the prior-year quarter and came ahead of the $120.7 million estimate.

Adjusted operating income increased 35% year over year to $12.6 million. Adjusted EPS of 20 cents beat the analyst expectations of 10 cents.

Adjusted EBITDA increased 31% Y/Y to $15.4 million, reflecting improved margins in the quarter.

CEO Adi Sfadia said the results were driven by solid execution across its Defense, Commercial and Peru segments.

Sfadia highlighted continued momentum in Gilat Defense, with growing demand in the U.S. and Europe for advanced communication solutions supporting mobility, rapid deployment, and operational continuity.

The company launched the Viper Ka ESA terminal to support unmanned and autonomous missions and advanced certification efforts for next-generation defense communication systems.

Comtech Acquisition

In June, Comtech Telecommunications Corp. (NASDAQ:CMTL) agreed to sell most of its satellite and space communications business to Gilat for $157.5 million.

During the earnings release today, Gilat management said that the Comtech acquisition is progressing well and represents a major step in expanding Gilat into a scaled defense, space, and mission-critical communications provider.

The deal is expected to create a company with more than $700 million in pro forma annual revenue.

Also, the company expects it to more than double Defense revenue, expand U.S. engineering and manufacturing capabilities, and improve access to larger defense and space programs.

The acquisition is expected to close by year-end, subject to regulatory approvals and closing conditions.

Gilat Outlook

The company reaffirmed FY2026 revenue guidance of $500 million-$520 million, compared with analyst expectations of $509.3 million.

Gilat continues to see adjusted EBITDA of $61 to $66 million, representing a growth rate of approximately 19% at the midpoint.

GILT Stock Performance

Gilat Satellite Networks shares were down 5.12% at $11.30 at the time of publication Wednesday.

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