New York, June 2, 2026, 08:05 EDT
- Viasat shares dropped 9.63% to finish at $72.86 on Monday, deepening their losses after earnings.
- Viasat will handle satellite communications for NOAA’s next-gen C-130J “Hurricane Hunter” planes after getting picked by Lockheed Martin.
- Needham is sticking with its Buy rating and $90 price target, though the stock traded lower.
Viasat shares struggled again Monday, dropping 9.63% to $72.86 after Friday’s 7.0% loss, leaving the stock down almost 16% over two days. A new Lockheed Martin subcontract and a price target bump from Needham didn’t stop the bleeding for the satellite communications name.
Viasat shares opened lower as investors questioned if the company’s recent space-and-spectrum gains got ahead of what it can deliver on earnings in the near term. The SPDR S&P 500 ETF was quoted about 0.2% above its last close in early trading, so Viasat’s move looked to be tied to the stock rather than the broader market.
Viasat said Monday it was picked by Lockheed Martin to supply high-bandwidth satellite communications for NOAA’s new C-130J Hercules “Hurricane Hunter” planes. The contract is for two modified aircraft, with options for more. The system will let the planes send scientific and operational data in real time while flying storm missions. Viasat
Viasat’s Hybrid SATCOM gear will be line-fit for the first time on the C-130J, the company said. That means it gets installed during production, not after. Victor Farah, senior vice president for government services and solutions at Viasat, said the pick is “a strong validation” of Viasat’s open-architecture strategy for airborne comms. Viasat
Viasat’s new order lines up with the company’s government, aviation and defense comms business, the areas investors still want. In its most recent quarterly letter, Viasat said fourth-quarter revenue was up 2% to $1.2 billion. Adjusted EBITDA, which investors look to for cash generation before certain charges, slipped 1% to $370 million.
Viasat, Inc. booked $1.3 billion in awards for the quarter, up 9%. Defense and Advanced Technologies revenue jumped 12%, which helped make up for a 2% drop in Communication Services as fixed services stayed soft. The company ended the year with a record $4.1 billion in backlog.
Viasat Chairman and CEO Mark Dankberg told shareholders the company’s fleet expansion should “roughly triple bandwidth inventory.” But Dankberg warned the broadband satellite business is still highly competitive. He said he expects fixed and residential service to get better in fiscal 2027, though growth for aviation services will likely slow due to tougher competition. Viasat, Inc.
Wall Street is staying in. Needham’s Ryan Koontz kept a Buy rating and a $90 price target, TipRanks said, pointing to Viasat’s bigger capacity, its spectrum holdings, and the Equatys JV plans.
Viasat’s stock got a lift from interest in space and spectrum names, but Barron’s points out the fiscal fourth-quarter EBITDA missed FactSet’s consensus. That trade bumped up AST SpaceMobile and EchoStar, too, Barron’s said. The bullish case is up against a weaker price move.
But there’s clear risk ahead. Viasat left out the value of the Lockheed subcontract, and in its securities filing the company pointed to risks in satellite construction and operations, more competition, U.S. budget delays, changes in spectrum and its debt load. Viasat also put in a shelf registration on May 29. That move lets it sell securities if it files terms later.
For now, the stock is stuck between recent government deals and analyst backing, and worries about valuation, execution, and slow fixed broadband. Tuesday’s open should show if buyers see the last two-day slide as a chance to get back in or as the first signal that the space trade is coming down.
