Gilat Satellite Networks Upgraded to 'Buy' After 48% Revenue Surge in 2025

Key Facts

1Gilat Satellite Networks (GILT) revenue increased by 48% year-over-year in 2025.

2The stock was upgraded to 'Buy' as growth broadened across commercial, defense, and Peru segments.

3GAAP gross margin fell to 28% and Q4 operating cash flow was negative.

Gilat Satellite Networks (GILT) has received a rating upgrade to 'Buy' following a robust financial performance in 2025. The company reported a significant 48% year-over-year increase in revenue, driven by broad-based growth across its commercial, defense, and Peru segments. Despite the top-line surge, analysts noted that the company's GAAP gross margin contracted to 28% during the period. Furthermore, Gilat faced challenges with negative operating cash flow in the fourth quarter, raising concerns over liquidity management. Investors are also monitoring execution risks associated with the Stellar Blu unit as the company scales its operations. While the valuation is no longer considered 'cheap,' the strong momentum in key sectors supports the optimistic outlook for the stock.