GILT Stock Forecast & Price Target

Gilat Satellite Networks Ltd has demonstrated significant financial growth, ending 4Q25 with cash and cash equivalents totaling $185 million, a notable increase from both the prior quarter and the previous year, largely driven by the Stellar Blue acquisition. The company's revenue and earnings per share exceeded consensus expectations in 3Q, benefiting from the strong performance in its Peru segment and improvements in defense segment sales, which suggests a healthy pipeline ahead. Furthermore, the company projects a revenue growth guidance of 10.5% to 15% for FY26, indicating strong anticipated contributions from both the commercial and defense sectors, coupled with an expanding market for high-performance in-flight connectivity solutions.

Gilat Satellite Networks reported a significant decline in cash flow from operations, dropping to negative $6 million from $28 million in the prior quarter and $16 million year-over-year, attributed to an increase in working capital. The company's year-end backlog for Satellite Broadband Solutions remained flat year-over-year, which may not meet investor expectations. Additionally, there is an ongoing decline in the satellite mobile backhaul market stemming from the emergence of new direct-to-device services, contributing to a challenging operational environment.