Gilat Satellite Networks Ltd. (NASDAQ:GILT) had a rough Tuesday. The satellite communications company reported mixed third-quarter results and then cut its full-year revenue forecast, sending shares down nearly 24% to $5.76 by the time of publication.

The headline numbers were a bit of a split decision: Gilat beat earnings estimates but missed Wall Street's revenue expectations.

Earnings Beat, Revenue Miss

Gilat reported adjusted earnings of 18 cents per share, comfortably ahead of the analyst estimate of 14 cents. Revenue, however, came in at $116.23 million, missing the $126.65 million estimate.

Adjusted EBITDA rose 13% to $17.6 million. Cash and short-term deposits totaled $260 million as of Sept. 30.

CEO Adi Sfadia credited cost controls and pricing discipline for improving profitability despite currency headwinds and bad debt write-offs tied to Hughes Network Systems' Chapter 11 filing.

But the good news came with a hefty caveat. Delayed in-flight connectivity terminal deliveries, satellite development and launch setbacks, and slower-than-expected agreements in Peru forced the company to slash its revenue outlook. Some expected revenue has shifted into 2027.

Sfadia also warned of growing competitive pressure as vertically integrated low-Earth-orbit satellite operators gain market share from traditional geostationary satellite providers.

To counter these challenges, Gilat is expanding its defense business, which posted 53% revenue growth during the quarter.

The planned Comtech acquisition, expected to close by year-end, could more than double Gilat's defense revenue in 2027 and strengthen its U.S. presence.

Meanwhile, the company continues to pursue opportunities in next-generation ground infrastructure, in-flight connectivity and sovereign satellite constellations.

Defense Revenue Jumps 53% As Gilat Eyes Comtech Deal

Gilat's defense revenue surged 53% year over year.

The company expects its planned Comtech acquisition to more than double defense revenue in 2027 and strengthen its U.S. market presence.

Gilat also secured several major contracts, including a deal worth more than $32 million for multi-band DKET systems supporting U.S. defense network resilience.

Other wins included more than $8 million in additional U.S. Department of Defense orders and over $10 million in SkyEdge IV orders.

The company also secured a $14 million broadband expansion agreement in Peru.

Gilat Cuts 2026 Revenue Forecast

Gilat lowered its 2026 revenue forecast to $455 million-$475 million from $500 million-$520 million.

The revised outlook fell below the analyst estimate of $507.06 million.

Management now expects full-year adjusted EBITDA of $61 million-$63 million.

Despite the weaker outlook, Gilat expects to complete its Comtech acquisition by year-end.

GILT Price Action: Gilat Satellite Networks shares were down 23.94% at $5.76 at the time of publication on Tuesday, according to market data.