Viasat, Inc. Q2 2027 Earnings Recap

Viasat shares rose 7.7% after earnings, with investors likely responding to higher fiscal 2027 free-cash-flow expectations and continued momentum in Defense and Advanced Technologies (DAT). The growth outlook is tempered by more conservative assumptions for commercial aviation and in-flight-connectivity backlog.

Key Takeaways

• Fiscal 2027 free cash flow is now expected to exceed $225 million, with capital expenditures of about $850 million to $900 million.
• DAT revenue grew about 20% year over year in Q2; Viasat expects full-year DAT revenue growth in the mid-teens or better.
• DAT recorded about $420 million in firm awards in Q2. The fiscal 2027 plan anticipates about $2 billion of awards, versus $1.6 billion last year.
• ViaSat-3 Flights 2 and 3 are in service and performing as expected; customers are reporting improved speeds and user experience.
• Management revised some commercial aviation assumptions and took a more conservative view of in-flight-connectivity backlog, while saying its broader investment thesis is unchanged.