Viasat Stock rises on $4B Space Force satellite program win

Viasat VSAT shares climbed on Thursday after the satellite communications company announced it had secured a prime contract from the US Space Force to build and launch satellites for the Protected Tactical SATCOM-Global program.

The stock rose about 8.1% to $66.48 during the session. Viasat shares have more than doubled this year.

The contract moves Viasat’s mini-GEO dual X/Ka-band satellite system into production for the Space Systems Command.

Under the agreement, the company will build, launch and deliver the first satellite in a planned fleet of small, maneuverable geosynchronous Earth orbit satellites designed for military communications.

The award is part of the Protected Tactical SATCOM-Global, or PTS-G, program, which has an Indefinite Delivery Indefinite Quantity ceiling value of $4 billion across all program awardees.

Production phase follows earlier design work

The new contract follows Viasat’s completion of the Delivery Order 1 phase awarded in 2025, during which the company developed a system design for a low size, weight, and power GEO satellite and associated ground architecture.

Under the multi-year Swarm 1 Delivery Order, Viasat’s Space and Mission Systems team will provide more than just the satellite itself. The contract also includes ground stations, operations support, and five years of sustainment services.

Those services cover tracking, telemetry, command, satellite, and network operations, and cybersecurity requirements.

Viasat said the satellite architecture will leverage technology developed for its ViaSat-3 fleet.

The company expects production and delivery of the dual-band X/Ka-band system to support initial operating capability no earlier than 2029.

The PTS-G initiative is part of the Space Force’s broader effort to deploy a proliferated constellation of agile GEO satellites capable of providing secure, anti-jam communications.

Analyst sentiment improves on long-term visibility

The contract announcement helped reinforce a more constructive view among analysts and investors regarding Viasat’s long-term growth prospects.

Investors see the extended government partnership as a source of recurring revenue and improved visibility, particularly given the multi-year nature of the Swarm 1 program and its associated operations support.

The market reaction suggests traders are reassessing Viasat’s position in defense and space communications, areas that have become increasingly important as governments expand investments in resilient satellite networks.

While the company did not disclose the specific value of the Swarm 1 Delivery Order, the broader PTS-G program’s $4 billion ceiling highlights the scale of the opportunity available to participating contractors.

Viasat has historically been known for broadband and communications services, but the latest award underscores its growing role in military satellite infrastructure.

The company’s ability to transition from the earlier design phase into full production was viewed as an important milestone, signaling progress toward deployment and long-term operational support.

As defense-related space spending continues to rise, investors will likely watch whether Viasat can secure additional orders under the PTS-G framework and convert its growing government backlog into sustained revenue growth over the coming years.