Viasat's Growth Driven by Defense Contracts Amid Market Strength
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2026
0mins
Source: PRnewswire
Viasat Inc (VSAT) has seen a significant price increase of 18.14%, reaching a 5-day high, as the broader market shows strength with the Nasdaq-100 up 0.90% and the S&P 500 up 1.11%.
The core catalyst for Viasat's growth is its rapid expansion in defense and government contracts, which have become a major driver of revenue. The company reported $4.64 billion in revenue and $597.1 million in free cash flow, showcasing its resilience despite challenges in its aviation business. This strong performance in the defense sector positions Viasat favorably in the competitive satellite industry.
As Viasat continues to secure lucrative contracts, its growth trajectory appears promising. The company's ability to adapt and thrive in the defense market, coupled with a solid revenue backlog, suggests that it is well-positioned to capitalize on future opportunities in the satellite communications landscape.
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Analyst Views on VSAT
Wall Street analysts forecast VSAT stock price to fall
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 83.800
Low
36.00
Averages
43.80
High
52.00
Current: 83.800
Low
36.00
Averages
43.80
High
52.00
About VSAT
Viasat, Inc. is a global communications company. Its segments include communication services and defense and advanced technologies. The communication services segment provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, as well as for residential and enterprise fixed broadband customers. In addition, this segment includes the development and sale of a wide array of advanced satellite and wireless products and terminals that support or enable the provision of fixed and mobile broadband and narrowband services. The defense and advanced technologies segment develop and offers a diverse array of resilient, vertically integrated solutions to government and commercial customers, leveraging its core technical competencies in encryption, cybersecurity, tactical gateways, modems and waveforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Positive Market Reaction: Following the announcement, Rocket Lab's stock surged 16% to $98.01, with analysts generally bullish; Roth Capital raised its price target to $130, indicating a 33% upside, reflecting optimism about the company's future prospects.
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- Retail Investor Sentiment Soars: On Stocktwits, retail sentiment for Rocket Lab jumped from “bullish” to “extremely bullish,” with 52% of voters in a poll considering the acquisition a “game-changer,” indicating strong investor confidence in the company's future growth.
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- Stock Surge: Following Horan's 'Outperform' rating and a $140 price target, ViaSat's stock surged 24% on Monday, marking its best single-day performance since August 2025, reflecting strong market confidence in its outlook.
- Industry Optimism: The broader excitement in the satellite sector, sparked by the acquisition of Iridium by Rocket Lab, also fueled ViaSat's stock rally, indicating investor optimism about the future of the satellite market.
- Contract and Launch Success: ViaSat secured a major contract from the U.S. Space Force in 2026 and successfully launched the ViaSat-3 F3 satellite, which is expected to significantly enhance its network capacity in the Asia-Pacific region, further solidifying its market position.
See More
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- Positive Market Reaction: Although Viasat is not directly involved in the acquisition, its stock surged 19% following the announcement, reflecting investor optimism about consolidation in the space industry and expectations for future competitive dynamics.
- Changing Competitive Landscape: The acquisition positions Rocket Lab to compete directly with Viasat and SpaceX's Starlink network, and despite Viasat's 29% profit drop last quarter, the market's optimism about potential merger opportunities could drive its stock price higher.
- Strategic Importance: Rocket Lab CEO Peter Beck highlighted that Iridium's wireless spectrum assets are crucial for large-scale global communications, and this acquisition will accelerate Rocket Lab's entry into this market, indicating fierce competition ahead in the space communications sector.
See More
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- Changing Competitive Landscape: The acquisition positions Rocket Lab to compete directly with Viasat and SpaceX's Starlink network, putting additional pressure on Viasat, which saw a 29% profit drop last quarter, potentially impacting its future profitability.
- Strategic Significance: Rocket Lab CEO Peter Beck highlighted that acquiring Iridium's wireless spectrum is crucial for large-scale global communications, accelerating Rocket Lab's entry into the communications market and potentially making Viasat a future merger target, reflecting the restructuring trend in the space industry.
See More
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- Revenue Growth: AST reported approximately $70.9 million in revenue for 2025, primarily from partnerships with mobile network operators and the U.S. government, indicating strong market interest in its direct-to-device services, which is expected to drive future revenue growth.
- Technological Advancements: AST has successfully completed the in-orbit deployment of BlueBird 6, touted as the largest commercial communications array ever deployed in low Earth orbit, with plans to launch 45 to 60 satellites by the end of 2026, further enhancing its competitive position in the market.
- Risks and Challenges: Despite the attractiveness of AST's business model, it remains in a capital-intensive phase, facing stringent requirements for manufacturing and launch schedules, where successful deployment will validate its model, while any delays could negatively impact its future development.
See More
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- Significant Revenue Commitments: AST has secured over $1.2 billion in contracted revenue commitments, reflecting strong partnerships with mobile network operators that are expected to drive future revenue growth and market share expansion.
- Leading Technological Innovation: The company has completed the in-orbit deployment of BlueBird 6, touted as the largest commercial communications array ever deployed in low Earth orbit, marking an enhancement in its technological capabilities and competitive edge in the market.
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See More
