Why Satellites Suddenly Matter: Viasat’s 229% Skyward Rally and the New Space Race
Viasat was a $4 billion afterthought in the satellite world—today, it’s the talk of the orbital town, with shares up a thunderous 229%. What’s fueling this improbable ascent? The answer lies in a cocktail of cosmic ambition, defense dollars, and a tectonic shift in how the world connects.
Bandwidth Is the New Oil: Viasat’s Big Bet Pays Off
In May, Viasat’s ViaSat-3 F2 satellite blinked alive over the Americas. The effect on the company was electric: this single satellite is expected to double Viasat’s total bandwidth capacity, a leap that instantly transformed its value proposition. Not only does this enable high-speed internet to remote towns, ships, and aircraft, it also cements Viasat’s seat at the table as governments and airlines scramble for global connectivity. The result? Revenue for Q2 2026 hit $1.14 billion, up 2% year-over-year, while adjusted EBITDA nudged up 3% to $385 million.
Defense Dollars: Satellites Go Tactical
The new space race isn’t just about streaming Netflix at sea. It’s about secure, resilient communications for militaries—and Viasat is suddenly a critical player. The company’s Defense and Advanced Technologies segment scored a record $1.2 billion backlog this quarter (up 31% year-on-year), turbocharged by a major U.S. Space Force contract. As the world’s battlefields and borders go digital, satellite bandwidth becomes an unassailable strategic asset. Little wonder the company’s awards surged 17% to $1.5 billion, and its contract backlog soared to $3.9 billion.
The Inmarsat Gambit: Scale, Synergies, and Skepticism
But Viasat’s most audacious move was its $7.3 billion acquisition of Inmarsat, a deal greenlit by the FCC this month. The merger creates a satellite juggernaut, fusing Viasat’s North American muscle with Inmarsat’s international reach. It’s a play for both scale and spectrum, pushing Viasat into pole position as a global connectivity provider. The market has noticed: the consensus analyst price target has leapt from $26.14 to $36.25 per share, even as some fret over the $7.08 billion debt load and a net cash position of -$5.85 billion.
Debt and Discipline: The Tightrope Walk
Viasat’s financial acrobatics are as daring as its satellites are high-flying. With $1.23 billion in cash and $69 million in free cash flow this quarter (a $210 million year-on-year improvement), the company is finally showing signs of financial gravity. It’s prioritizing debt reduction, targeting a 3x net debt to EBITDA ratio. This discipline is crucial: capital expenditures hit $1.2 billion this year, a necessary price for orbital supremacy.
Sector Shocks: New Rivals, Old Rules
Viasat isn’t alone in this stratospheric drama. SpaceX’s Starlink, HughesNet, and EchoStar are all vying for a slice of the $32.5 billion satellite revenue surge expected between 2022 and 2027. But unlike flashier disruptors, Viasat leverages a hybrid model—combining new multi-orbit partnerships (like Telesat Lightspeed) with legacy spectrum assets. The result: a 416% one-year share price surge, far outpacing an industry still wrestling with 13.4% declines.
Not Just Up, but Out: Why This Rally Isn’t Just Hype
Is it all blue sky? Not quite. Viasat’s net loss for Q2 2026 was $61 million (albeit a dramatic improvement from last year’s $138 million), and profitability is still on the horizon. But the company’s gross margin—a robust 67.1%—tells a story of product strength, and its improving net profit margin forecast (now up to 9.18%) suggests the worst may be behind it.
The Future Is Orbital
Viasat’s 229% six-month rally isn’t just a story of satellites and stock charts. It’s a sign that the world’s appetite for bandwidth, security, and seamless global connections is insatiable. In this new era, the sky is no longer the limit—it’s the launching pad.