Viasat Raises Fiscal Year 2025 Revenue Forecast

Viasat has raised its fiscal year 2025 revenue forecast, driven by a surge in demand for connectivity solutions in the aviation and defense markets.

The California-based company has significantly benefited from the growing need for constant connectivity and robust security solutions. Viasat offers products such as in-flight connectivity and data encryption to both enterprise and government customers.

Positive Revenue Growth Expectations:

Viasat now expects flat-to-slightly-up year-on-year revenue growth for fiscal 2025, compared with its prior expectation of roughly flat revenue growth.

In the satellite communications market, the company faces stiff competition from major players such as Elon Musk’s SpaceX, Intelsat, L3Harris Technologies, and EchoStar.

First Quarter Performance:

For the first quarter, Viasat reported a 44% increase in revenue to $1.13 billion, surpassing analysts’ average estimate of $1.08 billion. This growth was significantly boosted by acquiring Inmarsat, which broadened Viasat’s satellite and land-based communications services. The company’s net loss narrowed to $33 million in the first quarter, compared to a net loss of $77 million a year earlier.

Revenue from Viasat’s communication services segment rose 48% to $826.8 million. The defense and advanced technologies segment, which provides solutions including encryption and cybersecurity, saw a 37% increase in revenue to $299.7 million.

Key Customers and Market Position:

Viasat provides in-flight connectivity services to major aviation customers, including Delta Air Lines, American Airlines, and United Airlines. The company counts the U.S. government among its customers, highlighting its significant presence in commercial and government markets.