Eutelsat stock fell by as much as 8% following the release of the satellite operator's Q3 fiscal 2025-26 revenue figures, which showed total reported revenues of €293 million. That headline number represents a 2.3% decline from the prior year's reported €299.8 million, despite a 3.1% increase on a like-for-like basis.
The company’s legacy video broadcasting activity continued to contract. Video revenues for the quarter amounted to €128 million, down 13.3% year-over-year. Management attributed the decline primarily to sanctions affecting Russian channels and the termination of capacity contracts on the Express AT1 and AT2 satellites.
Eutelsat presented its Q3 results on May 12, 2026, framing the business as being in the midst of a strategic transition - moving away from traditional satellite broadcasting and toward next-generation connectivity services. In the immediate aftermath of the presentation the stock initially gained 3.09% as some investors welcomed the acceleration of the company's move into low Earth orbit - LEO - solutions. The following trading session, however, saw profit-taking and renewed attention on the contraction in reported revenues, contributing to the steeper decline.
For the current fiscal year management confirmed several forward-looking operating expectations. Revenues across operating verticals are expected to remain approximately flat versus the prior year. LEO-related revenues are projected to grow roughly 50% year-over-year. At the same time, management flagged that the adjusted EBITDA margin is expected to be slightly below the prior year’s level, reflecting the ongoing shift in business mix toward lower-margin connectivity services.
On the financing front, Eutelsat completed a €1.5 billion senior notes offering in early March. Company statements indicate this marked the final milestone in a comprehensive financing programme of approximately €5 billion in equity and debt, which included capital raises supported by principal shareholders, export credit financings, and extensions of bank debt maturities.
Analysts have emphasized that near-term profitability is likely to remain elusive as Eutelsat invests heavily in its connectivity transformation. The third-quarter results underline the company’s moment of transition - balancing the ongoing erosion of its legacy video business against rapidly growing LEO-enabled connectivity services - and illustrate why investors and analysts are closely watching revenue mix, margins, and the pace of LEO uptake.
Key points
- Eutelsat reported Q3 fiscal 2025-26 revenues of €293 million, a 2.3% decline on a reported basis but up 3.1% like-for-like.
- Video revenues fell 13.3% to €128 million due to sanctions on Russian channels and the termination of Express AT1 and AT2 capacity contracts.
- Management expects operating verticals revenues to be roughly flat for the year, LEO revenues to grow about 50% year-over-year, and adjusted EBITDA margin to be slightly below last year.
Sectors impacted: satellite services, broadcasting, telecommunications.
Risks and uncertainties
- Revenue volatility and investor sentiment - the reported revenue contraction prompted significant share price volatility, illustrating market sensitivity to headline results.
- Profitability pressure from business mix - management’s expectation of a slightly lower adjusted EBITDA margin reflects the risk that growing connectivity revenues may be lower-margin than the legacy video business.
- Structural decline in legacy video revenues - ongoing sanctions and contract terminations have driven the video segment lower, creating execution risk as the company reallocates resources to LEO services.
Conclusion
Eutelsat’s Q3 results portray a company at a strategic inflection point. The completed financing package provides capital to execute the shift, but the near-term picture is marked by a smaller reported top line, weaker video revenues, margin pressure from a changing mix, and attendant share price volatility as investors reconcile the trade-off between legacy decline and LEO growth.