Gilat Secures $40 Million Contract for 5G-Ready Satellite Platform

Gilat Satellite Networks, an Israeli leader in satellite communications technology, has secured a $40 million contract to deliver its virtualized SkyEdge IV platform over the next two years. The platform features a cloud-native architecture and is designed for future 5G Non-Terrestrial Network (NTN) standards, enabling satellite operators to meet evolving connectivity demands through a scalable, multi-service software solution deployable on standard cloud infrastructure. This contract represents about 12% of Gilat’s annual revenue and underscores the company's strategic shift towards digital transformation, supporting multi-orbit next-generation services and fostering a multi-vendor open ecosystem in the satellite communications industry. Analysts have responded positively, projecting up to a 49.20% upside in Gilat’s stock price, with average target prices around $8.40, and brokerage firms rating the stock as an 'Outperform'. Despite some near-term technical challenges and margin pressures, the longer-term outlook remains favorable due to Gilat’s strong financial performance, ongoing R&D, and expanding service offerings. Ron Levin, Gilat’s President of the Commercial Division, emphasized the company’s accelerated development towards 5G-NTN standards and new service introductions through this advanced ground segment architecture.