Viasat Beats EPS but Misses Revenue — Here Is How the Telecom Sector Really Performed in Q4

Viasat Beats EPS but Misses Revenue — Here Is How the Telecom Sector Really Performed in Q4

Satellite internet provider Viasat (NASDAQ: VSAT) posted Q4 revenue of $1.16 billion, up 3% year on year — but the number fell short of analyst expectations by 1%. Despite the revenue miss, the company beat EPS estimates, and the market rewarded it: VSAT stock has surged 23.2% since the earnings release, now trading at $46.12.

The broader telecommunication services sector told a more nuanced story. The six telecom stocks tracked this quarter beat consensus revenue estimates as a group by 0.6% — a solid collective showing. Yet share prices across the sector remained largely flat after results, signaling that investors already priced in much of the optimism. Here is a full breakdown of who won, who stumbled, and what the numbers reveal.

The Sector Divide: Satellites vs. Ground Lines

The telecom industry operates as a tale of two cities. Satellite companies benefit from surging global demand for connectivity in remote and hard-to-reach areas — a structural tailwind that keeps revenue growing. Terrestrial telecom providers, by contrast, fight a different battle. They operate in a deflationary market where the cost of transmitting data keeps falling as technology improves.

Both segments also face intensifying competition. Large telecom conglomerates, hyperscalers building out their own networks, and newer entrants like SpaceX’s Starlink all put pressure on established players across the board.

Also Read : Broadcom Stock Could Surge 91% — Here Is Why Analysts Say Buy Before It Hits $3 Trillion

Viasat: Strong Earnings Amid a Revenue Shortfall

The Satellite Giant With 23 Orbiting Birds

Viasat operates a fleet of 23 satellites that circle the Earth, delivering connectivity to airlines, maritime vessels, governments, businesses, and residential customers worldwide. The company sits at the intersection of defense, aviation, and consumer broadband — a rare diversified footprint in the satellite space.

Q4 revenue came in at $1.16 billion, a 3% increase year on year. Analysts had expected slightly more, and Viasat missed that bar by 1%. But earnings per share came in ahead of forecasts — a detail that clearly moved investors. The stock has climbed 23.2% since reporting and currently trades at $46.12.

Also Read : AT&T Wins America Favorite Wireless – Here Is Why It Keeps Beating Verizon and T-Mobile

Best Performer: Array (NYSE: AD) Stuns With 131% Revenue Jump

A Regional Wireless Carrier Breaks Out

Array, a regional wireless telecommunications provider and majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, delivered the quarter’s biggest upside surprise. The company serves 4.6 million customers across 21 states with mobile phone, internet, and IoT services.

Q4 revenue hit $60.33 million — a stunning 131% jump year on year — and beat analyst estimates by 7%. Array also cleared EPS forecasts. No other company in the group came close to that combination of growth rate and estimate beat.

Despite the blowout quarter, the market reacted coolly. Array stock fell 4.3% since reporting and now trades at $48.20 — a reminder that even exceptional growth does not always translate into immediate stock gains when expectations run high.

Globalstar Beats Revenue But Guides Lower

The iPhone SOS Partner Sends a Warning Signal

Globalstar (NASDAQ: GSAT) powers the emergency SOS feature built into newer Apple iPhones. The company operates a low-earth orbit satellite network providing voice and data services in areas where cellular towers do not reach — a niche but growing market.

Revenue for Q4 reached $71.96 million, up 17.6% year on year, which beat analyst expectations by 1.9%. That sounds positive on the surface. But Globalstar issued full-year revenue guidance that fell significantly short of analyst forecasts and also missed EPS estimates — two forward-looking misses that dampened enthusiasm.

The stock has traded flat since results and currently sits at $58.45.

Iridium Misses Revenue Badly, But the Stock Soars Anyway

66 Satellites, One Puzzle for Investors

Iridium Communications (NASDAQ: IRDM) runs a unique constellation of 66 low-earth orbit satellites covering every point on the planet. The company provides voice and data services to customers in the most remote locations on Earth — from polar expeditions to deep-sea vessels.

Q4 revenue of $212.9 million came in flat year on year and missed analyst estimates by 3.2%. Iridium recorded the weakest performance against analyst estimates of any company in the group. Yet the stock has surged 34.5% since reporting and now trades at $24.82 — defying the revenue miss entirely.

The disconnect likely reflects investor confidence in Iridium’s long-term contract pipeline and the defensive nature of its subscriber base.

Lumen: Shrinking Revenue, Shrinking Stock

Fiber Giant Faces Structural Headwinds

Lumen Technologies (NYSE: LUMN) operates approximately 350,000 route miles of fiber optic cable spanning North America and the Asia Pacific. The company sells cloud connectivity, security, and IT solutions to businesses and consumers — but the business continues to contract.

Q4 revenue came in at $3.04 billion, an 8.7% drop year on year. The result met analyst expectations, and Lumen beat EPS estimates — a technical win in an otherwise difficult quarter. The revenue growth rate ranked the slowest among all peers tracked this period.

The stock has fallen 21.7% since reporting and now trades at $6.62, reflecting persistent concerns about the company’s ability to reverse its revenue decline.

Q4 Telecom Sector Scorecard at a Glance

CompanyQ4 RevenueYoY Changevs. EstimatesStock Move
Viasat (VSAT)$1.16B+3%Missed by 1%+23.2%
Array (AD)$60.33M+131%Beat by 7%-4.3%
Globalstar (GSAT)$71.96M+17.6%Beat by 1.9%Flat
Iridium (IRDM)$212.9MFlatMissed by 3.2%+34.5%
Lumen (LUMN)$3.04B-8.7%Met estimates-21.7%

Top Questions Answered

Q1: How did Viasat perform in Q4 earnings?

Viasat reported Q4 revenue of $1.16 billion, up 3% year on year. The company missed analyst revenue expectations by 1% but beat EPS estimates. Despite the revenue shortfall, VSAT stock jumped 23.2% after reporting and now trades at $46.12.

Q2: Which telecom stock had the best Q4 earnings performance?

Array (NYSE: AD) delivered the strongest Q4 earnings performance in the telecom sector. The regional wireless provider posted 131% revenue growth year on year and beat analyst estimates by 7%. That combination made Array the clear standout of the group in terms of growth and estimate surprise.

Q3: Why did Iridium stock rise after missing earnings estimates?

Iridium missed Q4 revenue estimates by 3.2%, with revenue coming in flat at $212.9 million. Yet the stock climbed 34.5% after reporting. Investors appeared to look past the revenue miss, focusing instead on Iridium’s EPS beat and the long-term resilience of its global satellite subscriber base.

Q4: What challenges does the telecom sector face in 2026?

The telecom sector faces pressure from multiple directions. Terrestrial carriers like Lumen battle a deflationary pricing environment where data transmission costs keep falling. Satellite companies face new competition from Starlink and other emerging players. Across both segments, large telecom conglomerates and hyperscalers building private networks squeeze market share at every level.

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