Gilat Satellite Networks (GILT) drew fresh attention after reporting first quarter 2026 results that shifted from a loss to a net profit and reaffirming full year revenue guidance of US$500 million to US$520 million.

The stock has given up some ground recently, with the 1 month share price return down 14.29% and the 7 day share price return down 4.48%. This comes even though the year to date share price return is up 14.54% and the 1 year total shareholder return is around 2.7x, suggesting recent momentum has cooled after a strong run into these earnings and guidance headlines.

If you are weighing what to do after Gilat’s latest results, this can be a good moment to widen your watchlist with other satellite and communications infrastructure ideas by checking out 35 power grid technology and infrastructure stocks

After a strong multiyear total return and a sharp pullback in the past month, investors now face a simple question: Is Gilat still trading below what its current fundamentals suggest, or is the market already pricing in future growth?

Most Popular Narrative: 19.2% Undervalued

At a last close of $15.36 versus a narrative fair value of $19, the widely followed storyline around Gilat leans on long term contract visibility and SATCOM adoption to justify that gap.

Growing global investment in secure, mission-critical satellite connectivity, driven by increased geopolitical tensions, public infrastructure modernization, and digital inclusion initiatives, continues to expand Gilat's addressable market, as evidenced by record new defense contracts and major government programs in regions such as Latin America and Europe. This is likely to support outsized revenue growth and enhance long-term earnings visibility.

Curious what earnings power sits behind that valuation gap? The narrative leans on brisk revenue expansion, firmer margins, and a future earnings multiple that assumes meaningful profit scaling.

Result: Fair Value of $19 (UNDERVALUED)

However, this hinges on execution, as slower Stellar Blu production and pressure on gross margins are both capable of quickly challenging the current undervalued narrative.

Another View: Earnings Multiple Sends a Caution Flag

While the narrative fair value of $19 points to upside, the current P/E of 36.4x is higher than both the estimated fair ratio of 33.1x and the US Communications industry average of 31.4x, even though it sits well below the 77.6x peer average. That gap suggests the stock carries some valuation risk if growth or margins fall short, so the key question is whether you see current earnings power as strong enough to keep supporting this premium.

For a closer look at how this earnings multiple compares with fundamentals and peers, take a moment to run through our valuation breakdown, where the fair ratio is front and center, in See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With sentiment clearly split between upside potential and valuation risk, this is a good moment to move quickly, review the full picture, and weigh 2 key rewards and 2 important warning signs

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.