Between Starlink and the US Army: The Challenges Rocking Gilat

Gilat Satellite Networks' stock fell about 17% this week after a sharp cut in revenue forecasts, amid competition from Starlink and launch delays. In contrast, defense revenues surged over 50% thanks to orders from the US Army.

Gilat Satellite Networks' stock fell about 17% this week in Tel Aviv and on Nasdaq, after the company sharply cut its annual revenue forecast, despite improved profitability in the third quarter. Gilat's commercial activity, which includes providing communication and internet solutions for aircraft, showed weakness amid growing competition from Elon Musk's Starlink. In contrast, defense revenues surged over 50% within a year, mainly due to orders from the US Army. Gilat sees the defense sector as a significant growth engine due to higher profit potential. The main challenge is to continue expanding defense operations while overcoming delays in the civilian sector.