GSAT

Generated second quarter 2026 revenue of $64.8 million with record high Commercial IoT subscriber activations. Continued progress on regulatory approval process in connection with the previously announced Merger Agreement with Amazon, with expiration of the waiting period under the HSR Act in July 2026. Continued execution of next-generation satellite constellation initiatives with launch of first set of replacement satellites rescheduled for later this month and further development of third-generation satellites. COVINGTON, La., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Globalstar, Inc. (Nasdaq: GSAT) (“Globalstar” or the “Company”), a next-generation telecommunications infrastructure and technology provider, today announced its financial results for the second quarter ended June 30, 2026. Capitalized terms not defined herein have the meaning given to such terms in our periodic reports. "During the second quarter, we remained focused on disciplined execution across our business while continuing to invest in the technologies and infrastructure that support our long-term strategy," said Dr. Paul E. Jacobs, Chief Executive Officer of Globalstar. "We continue to make meaningful progress across our product, network and commercial initiatives while advancing the regulatory process associated with our previously announced Merger Agreement with Amazon. I am proud of our team's continued execution and commitment to delivering innovative connectivity solutions for our customers." RECENT OPERATIONAL HIGHLIGHTS Transaction Update: The proposed transaction with Amazon is progressing through the regulatory approval process with the HSR waiting period having expired on July 17, 2026. Globalstar and Amazon are actively engaged with remaining regulatory authorities, including the FCC and certain international merger control, foreign investment and satellite and communications authorities. The transaction is expected to close in 2027 and remains subject to the satisfaction of remaining closing conditions including, among others, receipt of outstanding regulatory approvals and Globalstar's achievement of certain HIBLEO-4 replacement satellite milestones. Continued Execution of Satellite Network Initiatives: Globalstar continued execution of its next-generation satellite replacement and expansion initiatives, including preparation for the launch of its first set of replacement satellites, which will support Globalstar’s current-generation LEO constellation, and further development of its third-generation satellites and ground infrastructure. Globalstar is expanding its international network of ground stations in order to support its third-generation C-3 satellite system with active construction projects in multiple countries across North and South America as well as Europe and Asia. These initiatives represent important components of the Company's long-term strategy pursuant to the Updated Services Agreements to enhance network resilience, capacity and service capabilities. Commercial Momentum Across Connectivity Solutions: Globalstar continued to see commercial engagement across its satellite and terrestrial connectivity portfolio, including customer interest in its RM200M satellite communications module and ongoing demand for mission-critical connectivity solutions. The Company also continued expanding opportunities within government and defense markets while supporting customers across its terrestrial and satellite offerings. SECOND QUARTER FINANCIAL REVIEW Revenue Total revenue for the second quarter of 2026 was $64.8 million, including $60.0 million of service revenue and $4.8 million of revenue generated from subscriber equipment sales. Service revenue decreased $3.2 million, or 5%, during the second quarter of 2026 compared to the prior year's second quarter, primarily due to a decrease in wholesale capacity service revenue resulting from the timing of service fees associated with the reimbursement of network-related costs. The second quarter of 2025 included out of period wholesale capacity services revenue of $6.6 million; excluding this item, service revenue during the second quarter of 2026 would have increased $3.4 million compared to the prior period. Declines in Duplex and SPOT service revenue due to subscriber churn over the last twelve months also contributed to the decrease in service revenue. Partially offsetting these decreases was an increase in Commercial IoT service revenue due to growth in the subscriber base during the second quarter of 2026; we achieved record high Commercial IoT subscriber activations during the second quarter of 2026, contributing to an over 20% increase in gross activations on a last twelve-month basis. Revenue from subscriber equipment sales increased $0.8 million, or 21%, compared to the prior year's second quarter primarily due to a higher volume of Commercial IoT device sales, and to a lesser extent, but meaningful from a strategic growth perspective, the sale of XCOM RAN systems. (Loss) Income from Operations Loss from operations was $4.8 million during the second quarter of 2026, compared to income from operations of $6.1 million during the prior year's second quarter. Higher operating expenses and a decrease in service revenue (discussed above) contributed to this change. The increase in operating expenses was due primarily to higher marketing, general and administrative (“MG&A”) expenses and cost of services offset partially by lower stock-based compensation and depreciation expense. MG&A expenses were higher than the prior year's second quarter due primarily to increased legal and other professional fees related to the Amazon transaction. Consistent with previous quarters, higher cost of services resulted primarily from network operating costs to support the build out of our next-generation ground network infrastructure, a significant portion of which are reimbursed to us and recognized as revenue. Costs to support XCOM technology development also increased during the second quarter of 2026 compared to the same period in 2025. Also contributing to the increase in cost of services and MG&A expenses was the recognition of employee retention credits received in the second quarter of 2025 that did not recur in 2026. Net (Loss) Income Net loss was $26.5 million for the second quarter of 2026, compared to net income of $19.2 million for the prior year's second quarter. Net loss was impacted by unfavorable changes in foreign currency losses and gains due to the remeasurement of intercompany balances as well as higher interest expense resulting from our recognition of non-cash imputed interest related to the 2024 Prepayment Agreement. Unfavorable changes in (loss) income from operations (discussed above) also impacted the net loss during the quarter. Offsetting these items was a noncash gain on the contingent interest feature within the 2024 Debt Repayment resulting from the achievement of certain milestones under our agreements with the Customer pursuant to the Updated Services Agreements. As a result of the adoption of ASU 2025-07, we are no longer required to bifurcate the embedded derivative associated with the 2024 Debt Repayment; accordingly the quarterly noncash mark-to-market adjustments ceased in 2026. Adjusted EBITDA Adjusted EBITDA was $26.0 million during the second quarter of 2026 compared to $35.8 million during the prior year's second quarter. This decrease was due to higher operating expenses (excluding adjustments for non-cash or non-recurring items) and lower revenue, primarily driven by the out of period service revenue recognized in the second quarter of 2025, as discussed above. Adjusted EBITDA is a non-GAAP financial measure. For more information, refer to “Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA.” YEAR TO DATE FINANCIAL REVIEW Revenue Total revenue for the first six months of 2026 was $134.8 million, including $126.7 million of service revenue and $8.1 million of revenue generated from subscriber equipment sales, compared to $127.2 million for the first six months of 2025. Service revenue increased $6.4 million, or 5%, during the first six months of 2026 compared to the same period in 2025 primarily due to higher wholesale capacity services resulting from additional service fees associated with the reimbursement of network-related costs. Consistent with the quarterly results previously discussed, higher Commercial IoT subscribers increased service revenue for the first six months of 2026 partially offset by lower service revenue due to fewer Duplex and SPOT subscribers. Also increasing service revenue for the period was higher revenue associated with our service agreement with Parsons Corporation as we moved beyond the proof of concept phase and into the first year of service. Revenue from subscriber equipment sales increased $1.2 million, or 18%, for the first six months of 2026 compared to the same period in 2025 consistent with the quarterly discussion above. Income (Loss) from Operations Income from operations was $3.4 million during the first six months of 2026, compared to loss from operations of $2.4 million during the same period in 2025. During the first six months of 2026, higher revenue was partially offset by higher operating expenses, as discussed above. Consistent with the quarterly discussion above, operating expenses were higher due primarily to higher MG&A expenses and cost of services offset by lower stock-based compensation and depreciation expense. Also contributing to the increase in cost of services and MG&A expenses was the recognition of employee retention credits received in both the first and second quarters of 2025 that did not recur in 2026. The fluctuation in operating expenses was favorably impacted by a noncash disposal of assets recognized during the first quarter of 2025 that did not recur in 2026. Net (Loss) Income Net loss was $41.4 million for the first six months of 2026, compared to net income of $1.9 million during the same period in 2025. The variances driving net loss and income are consistent with the quarterly discussion above. Adjusted EBITDA Adjusted EBITDA was $59.4 million during the first six months of 2026 compared to $66.1 million during the same period in 2025. Higher revenue was more than offset by higher operating expenses (excluding adjustments for non-cash or non-recurring items). Specifically, while we continue to enhance and develop our XCOM RAN product and service offerings, we have incurred costs, primarily for personnel, in advance of significant revenue. Also, as previously described, 2025 Adjusted EBITDA benefited from out of period service revenue of $6.6 million that was recognized in the second quarter of 2025. Liquidity As of June 30, 2026, we held cash and cash equivalents of $409.8 million, compared to $447.5 million as of December 31, 2025. During the first six months of 2026, net cash flows generated from operations were approximately $159.7 million, capital expenditures were $208.3 million and net cash flows from financing activities were $10.6 million. Cash and cash equivalents were also positively impacted by a $0.3 million effect of exchange rate changes. Operating cash flows during the first six months of 2026 included $104.8 million received in connection with the Infrastructure Prepayment, $15.0 million in accelerated service fee payment from the Customer pursuant to the Updated Services Agreements as well as other cash flows generated from the business. Capital expenditures were primarily associated with our commitments under the Updated Services Agreements related to the deployment of the replacement satellites and Extended MSS Network. Financing activities for the first six months of 2026 reflected a draw pursuant to the 2023 Funding Agreement, offset by the final recoupment under the 2021 Funding Agreement as well as preferred stock dividend payments. Adjusted free cash flow during the first six months of 2026 was $43.5 million compared to $77.9 million during the same period in 2025. This decrease was primarily due to the timing of cash receipts pursuant to the Updated Services Agreements, specifically $15.0 million in accelerated service fees paid to us during the first six months of 2026 compared to $30.0 million during the first six months of 2025 as well as the timing of service fees associated with the reimbursement of network-related costs (as discussed above). Adjusted free cash flow is a non-GAAP financial measure. For more information, refer to “Reconciliation of Non-GAAP Adjusted Free Cash Flow.” The principal amount of our debt was $423.7 million at June 30, 2026, compared to $410.0 million at December 31, 2025. This increase was due to the issuance of debt under the 2023 Funding Agreement totaling $19.9 million during 2026 offset by the final recoupment of $6.3 million under the 2021 Funding Agreement. CONTINUED SUSPENSION OF FINANCIAL OUTLOOK AND CONFERENCE CALLS In connection with the pending transaction with Amazon, Globalstar does not intend to hold future earnings conference calls or provide updates to forward-looking guidance. About Globalstar, Inc. Globalstar is a global telecommunications provider connecting what matters most. Through our industry-leading low Earth orbit (LEO) satellite constellation and licensed Band 53/n53 spectrum, we deliver reliable satellite and terrestrial connectivity solutions that empower customers worldwide to connect, transmit, and communicate smarter. Our comprehensive connectivity ecosystem includes software-defined, purpose-built private wireless network platform, coupled with Globalstar Band 53 in XCOM RAN™ and trusted GPS messengers Saved by SPOT™ for safety and personal communication for business and enterprise applications. Serving business, enterprise, and consumer markets across the globe, Globalstar supports applications that track and protect assets, enable automation, enhance operational efficiency, and safeguard lives. With unmatched reach and a relentless focus on innovation, and mission-critical performance, we're redefining what's possible for global connectivity. Note that all SPOT products described in this press release are the products of SPOT LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia. For more information, visit www.globalstar.com. Investor Contact Information:[email protected] Cautionary Statement About Forward-Looking StatementsCertain statements contained in this press release other than purely historical information, including, but not limited to, estimates, projections or statements relating to the Mergers, future revenue, financial performance, financial condition, liquidity, adjusted free cash flow, projections, estimates and guidance, statements relating to our business plans, objectives and expected operating results, our anticipated financial resources, our expectations about the future operational performance of our satellites (including their projected operational lives) and the completion and launch of new satellites, our expectations regarding the outcomes of regulatory and licensing proceedings, the expected growth prospects of our existing customers and the markets that we serve, our expectations relating to the impact of trade policies (including tariffs), our expectations about our ability to integrate the licensed technology into our current line of business, the expected benefits of the updated services agreements, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words “believe,” “project,” "might," "could," “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Risks and uncertainties that could cause or contribute to such differences include, without limitation, our ability to complete the Mergers on the anticipated terms and timing, or at all, including obtaining required regulatory approvals and the satisfaction of other conditions to the completion of the Mergers, potential litigation relating to the Mergers, including the effects of any outcomes related thereto, the risk that disruptions from the Mergers (such as the ability of certain of our customers to terminate or amend contracts upon a change of control, or to withhold consent to such change of control) will harm our business, including current plans and operations, our ability to retain and hire key personnel, the diversion of management’s time and attention from ordinary course business operations, potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Mergers, contractual provisions that may impact our ability to pursue certain business opportunities or strategic transactions during the pendency, and/or following the completion of, the Mergers, the occurrence of any event, change, or other circumstance that could give rise to the termination of the Mergers, including in circumstances requiring us to pay a termination fee under the Merger Agreement, our ability to meet our obligations to attain the anticipated benefits under the Updated Services Agreements and avoid the potential adjustment of the Merger Consideration if we fail to meet certain milestones based on the Company's agreements with the Customer, and those described under Item 1A. Risk Factors of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and as updated in the Company’s other filings with the SEC. The Company undertakes no obligation to update any of the forward-looking statements after the date of this press release to reflect actual results, future events or circumstances or changes in our assumptions, business plans or other changes. This press release contains measures such as EBITDA, Adjusted EBITDA, and Adjusted free cash flow, which are not recognized under U.S. generally accepted accounting principles (GAAP). Reconciliations of these non-GAAP measures to amounts reported in the Company’s consolidated financial statements are provided in this press release. For forward-looking Adjusted EBITDA margin, the Company is unable to provide a reconciliation to the most comparable GAAP measure without unreasonable effort because estimating such GAAP measures and providing a meaningful reconciliation is extremely difficult and requires a level of precision that is unavailable for these future periods and the information needed to reconcile these measures is dependent upon future events, many of which are outside of our control as described above. Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions.

Gilat Satellite (GILT) came out with quarterly earnings of $0.2 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +42.86%. A quarter ago, it was expected that this satellite broadband communications company would post a loss of $0.06 per share when it actually produced earnings of $0.18, delivering a surprise of +400%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Gilat, which belongs to the Zacks Satellite and Communication industry, posted revenues of $122.66 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $104.97 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Gilat shares have lost about 8% since the beginning of the year versus the S&P 500's gain of 13%. While Gilat has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Gilat was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.19 on $134.2 million in revenues for the coming quarter and $0.70 on $509.6 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Satellite and Communication is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Globalstar (GSAT), is yet to report results for the quarter ended June 2026. This satellite communications company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -169.2%. The consensus EPS estimate for the quarter has been revised 566.7% lower over the last 30 days to the current level. Globalstar's revenues are expected to be $72.96 million, up 8.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gilat Satellite Networks Ltd. (GILT) : Free Stock Analysis Report Globalstar, Inc. (GSAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AST SpaceMobile ASTS is scheduled to report second-quarter 2025 earnings on Aug. 10, 2026, after market close. The Zacks Consensus Estimate for revenues and earnings is pegged at $34.13 million and a loss of 28 cents per share, respectively. Over the past 60 days, the earnings estimate for ASTS for fiscal 2026 has increased by 1.43%, and for fiscal 2026, it has declined by 10.53%. Image Source: Zacks Investment Research The company delivered a negative four-quarter earnings surprise of 124.3%, on average. In the last reported quarter, the company delivered a negative earnings surprise of 186.96%. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for ASTS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.ASTS currently has an ESP of -1.56% with a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. During the second quarter, AST SpaceMobile successfully launched BlueBird satellites 8, 9 and 10 into low Earth orbit aboard a SpaceX Falcon 9 rocket. The satellites feature approximately 2,400-square-foot communications arrays and are expected to nearly double the peak data speeds delivered by the company's initial Block 1 BlueBird satellites. Following the successful launch, ASTS announced that BlueBirds 11, 12 and 13 are targeted for launch during the first half of August. The developments highlight that the company is well on track in developing its direct-to-device cellular broadband network infrastructure.In the quarter under review, ASTS secured approval from the U.S. Federal Communications Commission (FCC) to commercially offer its SpaceMobile Service across the United States. The authorization is an important step towards the commercialization of its services in the country. The authorization allows the company to operate a constellation of up to 248 satellites delivering direct-to-device cellular broadband using premium low-band spectrum in partnership with AT&T and Verizon. Such developments bode well for sustainable growth.However, competition in satellite communications remains intense. Space Exploration Technologies Corp. SPCX, which recently completed its IPO, is expanding the Starlink network. The company is collaborating with T-Mobile to expand its direct-to-device services. At the same time, Globalstar, Inc. GSAT, a leading player in satellite voice and data services, stands to benefit from Amazon's planned acquisition. These factors are expected to intensify competition in the satellite communications market going forward. Over the past year, ASTS has gained 20.8% compared to the industry’s growth of 28.2%. However, the company has outperformed peers like SpaceX but underperformed Globalstar. GSAT has surged 237.1%. SPCX has declined 15.1% since its IPO. Image Source: Zacks Investment Research From a valuation standpoint, ASTS is currently trading at a premium compared to the industry. Going by the price/sales ratio, the company’s shares currently trade at 51.12 forward sales, higher than 4.71 for the industry. Image Source: Zacks Investment Research AST SpaceMobile has accelerated the rollout of its BlueBird constellation. This steady deployment improves network coverage and strengthens commercial readiness. The company continues to target roughly 45 satellites in orbit by the end of 2026, with launches expected every one to two months.The company continues to benefit from its highly vertically integrated manufacturing model. This gives the company greater control over production, quality and supply chain management. AST SpaceMobile has established one of the industry's largest partner ecosystems, with agreements covering nearly 60 mobile network operators representing more than three billion subscribers. Collaborations with AT&T, Verizon, Vodafone, Rakuten, Bell Canada and TELUS broaden its footprint and align the service with existing operator spectrum and network cores.Besides telecom operators, AST SpaceMobile continues to expand its presence in government programs. The company secured additional U.S. government awards during the first quarter, while management expects both government programs and mobile network operator agreements to drive revenue growth throughout 2026.However, building a global direct-to-device satellite network requires substantial capital investment across satellite manufacturing, launches, gateway infrastructure and spectrum integration. In large-scale operations such as ASTS, execution risk remains a major concern for investors. While recent launches have been successful, the issue during the BlueBird 7 launch highlights the operational risks. Competition in direct-to-device satellite connectivity is intensifying as players such as SpaceX's Starlink, Globalstar and Viasat continue expanding their satellite capabilities.SpaceX’s Starlink is ahead of ASTS in terms of commercial deployment. The company already offers messaging solutions and is developing voice communication. Its partner base includes T-Mobile, Rogers, Virgin Media O2 and others. It is worth noting that ASTS has a broader partner ecosystem and has developed a strong foundation in space-based cellular networks. ASTS SpaceMobile is set to gain from gateway hardware sales and U.S. government contracts in the second quarter. Strong satellite deployment momentum and an expanding partner base are positive factors. Regulatory approvals reduce commercialization risk. However, it is to be noted that although ASTS has demonstrated technology success, large-scale consumer adoption, pricing models, carrier monetization and long-term economics are still unproven. Growing competition in the satcom space is a concern. With a Zacks Rank #3, ASTS appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AST SpaceMobile, Inc. (ASTS) : Free Stock Analysis Report Globalstar, Inc. (GSAT) : Free Stock Analysis Report Space Exploration Technologies Corp. (SPCX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AST SpaceMobile, Inc. ASTS reported soft first-quarter 2026 results. Adjusted earnings and revenues both fell short of the Zacks Consensus Estimate. Net loss in the reported quarter was $191 million or a loss of 66 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents. Quarterly revenues increased to $14.7 million from $0.72 million in the year-ago quarter. However, it fell short of the Zacks Consensus Estimate of $38.2 million. ASTS is building a global satellite broadband constellation. This is a highly capital-intensive venture. As of March 31, 2026, the company has disclosed approximately $1.8 billion of gross capitalized property and equipment costs. Bluebird satellite development, launch payments, manufacturing facilities, ground infrastructure, assembly and test equipment require substantial investment continuously. In large-scale operations such as ASTS, execution risk remains a major concern for investors. The company has to simultaneously execute satellite manufacturing, telecom integration, regulatory approvals and eventually commercial activation. Recently, AST SpaceMobile announced that BlueBird 7 was placed into a lower-than-planned orbit during the New Glenn 3 mission. Although the satellite successfully separated from the launch vehicle and powered on, the company stated that the altitude was insufficient to sustain operations, and the satellite is expected to de-orbit. Such incidents highlight the execution risks more clearly. It is to be noted that although ASTS has demonstrated technology success, large-scale consumer adoption, pricing models, carrier monetization and long-term economics are still unproven. Investors are pricing on ASTS’ large-scale monetization, the company’s growing prowess in direct-to-cell technology. However, high dependence on telecom partners, regulatory complexities and scaling the ground infrastructure will be a complex endeavor. Competition in direct-to-device satellite communications is increasing rapidly. Existing and new industry leaders like SpaceX’s Starlink, Viasat, Inc. VSAT and Globalstar, Inc. GSAT are also expanding their satcom infrastructure. Hence, to combat such competitive pressure, ASTS has to continuously customize its network offerings and invest heavily in network expansion, which can increase operating costs and reduce margins. AST SpaceMobile is targeting one of the largest telecom opportunities globally. The company aims to deliver cellular broadband directly from space to normal smartphones without using any specialized devices. ASTS has highlighted that nearly 6 billion phones worldwide still face coverage gaps. This creates a large total addressable market for the company across rural connectivity, maritime and remote areas, disaster recovery, government and defense communications. Compatibility with existing telecom infrastructure, direct 4G/5G connectivity are major advantages. ASTS is placing strong emphasis on manufacturing scale-up. It owns the intellectual property and controls the manufacturing process for approximately 95% of all sub-systems used in its Block 2 BlueBird satellites. The company has also expanded its supplier base to reduce dependence on a single supplier and strengthen its supply chain. It has been disclosed that the dedicated micron production facility in Texas is now fully operational. Microns are critical electronic components used inside its BlueBird satellites. Owning end-to-end manufacturing allows ASTS to stockpile critical inputs earlier and manage procurement timing more proactively. The company is developing manufacturing facilities in Florida. It aims to expand production facilities to over 500,000 square feet globally. Such an initiative gives production stability and supports the company’s goal of ramping satellite deployment rapidly. AST SpaceMobile has strategically partnered with leading telecom companies to grant customers easy access to its technology. Collaborations with Rakuten, AT&T, Verizon and TELUS have expanded its international footprint and strengthened long-term commercial opportunities. It recently secured approval from the FCC to deploy and operate a constellation of up to 248 satellites to provide supplemental cellular coverage from space directly to standard smartphones in the United States. The approval enables ASTS to use premium low-band spectrum in coordination with Verizon, AT&T and FirstNet, strengthening its regulatory position and supporting broader commercial deployment plans. ASTS has gained 185.1% in the past year compared with the wireless equipment industry’s growth of 57.6%. The stock has outperformed the Zacks Computer & Technology sector and the S&P 500’s growth during this period. Image Source: Zacks Investment Research It has underperformed its competitors, such as Viasat and Globalstar. ViaSat has returned 522.4% while Globalstar has surged 341.2% during this period. Earnings estimates for 2026 have decreased over the past 60 days. Image Source: Zacks Investment Research From a valuation standpoint, ASTS is currently trading at a premium compared with the industry. AST SpaceMobile trades at a forward price-to-sales ratio of 74.36, well above the industry. Image Source: Zacks Investment Research Gateway hardware sales and U.S. Government contracts are primarily driving ASTS’s top-line growth. Its vertically integrated manufacturing strategy, focus on improving the supply chain, will likely bring long-term benefits. Comprehensive patent portfolio, growing telecom partner base are added advantages. However, in a high capital-intensive business model, execution risk remains a major concern. It heavily relies on third-party launch providers. Any failure, delay or underperformance by these providers is likely to disrupt the timely deployment of its satellites. With a Zacks Rank #3 (Hold), ASTS appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Viasat Inc. (VSAT) : Free Stock Analysis Report Globalstar, Inc. (GSAT) : Free Stock Analysis Report AST SpaceMobile, Inc. (ASTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Globalstar, Inc. (NASDAQ:GSAT) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a pretty bad result overall; while revenues were in line with expectations at US$70m, statutory losses exploded to US$0.16 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Globalstar after the latest results. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Taking into account the latest results, the consensus forecast from Globalstar's three analysts is for revenues of US$298.8m in 2026. This reflects a credible 5.6% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 20% to US$0.12. Before this earnings announcement, the analysts had been modelling revenues of US$296.2m and losses of US$0.05 per share in 2026. While this year's revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock. See our latest analysis for Globalstar Despite expectations of heavier losses next year,the analysts have lifted their price target 5.9% to US$90.00, perhaps implying these losses are not expected to be recurring over the long term. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Globalstar's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.5% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.8% annually. Even after the forecast slowdown in growth, it seems obvious that Globalstar is also expected to grow faster than the wider industry. The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Globalstar. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time. With that in mind, we wouldn't be too quick to come to a conclusion on Globalstar. Long-term earnings power is much more important than next year's profits. We have forecasts for Globalstar going out to 2028, and you can see them free on our platform here. You should always think about risks though. Case in point, we've spotted 1 warning sign for Globalstar you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.

Generated first quarter 2026 revenue of $70.1 million, a 17% increase from the prior year's first quarter, bolstered by higher wholesale capacity services revenue Announced entry into definitive merger agreement with Amazon Advanced satellite constellation roadmap with two planned launches during 2026 and further development of next-generation satellites Received further regulatory clarity from the Federal Communications Commission's ("FCC") Space Bureau reaffirming Globalstar’s exclusive MSS operating rights in the Big LEO spectrum band COVINGTON, La., May 07, 2026--(BUSINESS WIRE)--Globalstar, Inc. (Nasdaq: GSAT) ("Globalstar" or the "Company") today announced its financial results for the first quarter ended March 31, 2026. "We delivered strong operational and financial results in the first quarter, continuing the momentum we built entering 2026," said Dr. Paul E. Jacobs, CEO of Globalstar. "Demand is growing across our government, defense, and private wireless businesses, reflecting the market's need for scalable, integrated solutions across both satellite and terrestrial based connectivity. Subsequent to the quarter end, we announced our entry into a merger agreement with Amazon, which we believe marks a significant milestone — one that validates the long-term strategy Globalstar has pursued for more than 30 years and positions us to deliver on the vision of connecting users and devices anywhere and anytime. Finally, Globalstar greatly appreciates the recent decision of the FCC’s Space Bureau regarding the exclusive nature of our licensed MSS spectrum." RECENT OPERATIONAL HIGHLIGHTS Pending Mergers with Amazon.com, Inc.: On April 13, 2026, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Amazon.com, Inc. ("Amazon"), pursuant to which Amazon intends to acquire the Company, subject to the satisfaction of certain conditions (collectively, the "Mergers"). Globalstar satellites, radio frequency spectrum, and operational expertise will enable Amazon Leo to add direct-to-device services to future generations of its low Earth orbit satellite network. Globalstar stockholders will elect to receive for each share of Globalstar common stock they own either (i) $90.00 in cash or (ii) 0.3210 shares of Amazon common stock with a value capped at $90.00 per share. This consideration is subject to a proration mechanism that caps aggregate cash elections to a maximum of 40% of total outstanding Globalstar shares at the applicable effective time, and is subject to a downward adjustment of a maximum $110 million in the event Globalstar does not achieve certain operational milestones. Globalstar's majority stockholder and certain of its affiliated entities have approved the transaction by written consent. The Mergers are expected to close in 2027, subject to the satisfaction of certain closing conditions under the Merger Agreement, including required regulatory approvals. Next-Generation Satellite Network Development: Complementing the replacement satellites for our second-generation constellation expected to be launched this year, our third-generation, or C-3, constellation comprised of over 50 satellites is designed to expand network capacity, enhance service durability, and position Globalstar to deliver reliable connectivity across its global footprint and support increasing demand for direct-to-device, IoT and enterprise applications. The regulatory foundation for Globalstar's expanding MSS was further strengthened in April, when the FCC's Space Bureau reaffirmed Globalstar's exclusive MSS operating rights in the Big LEO spectrum band, rejecting with prejudice requests by multiple satellite operators to share its licensed spectrum. XCOM RAN Ecosystem Progress: Advanced the commercial momentum of XCOM RAN through the launch of an end-to-end 5G private network solution, including radios with Band n53 support, a core network, a management and orchestration module, and 5G supported routers. Government and Defense Market Expansion: Expanded engagement across government and defense sectors, aligned with a broader market shift toward low size, weight, power, and cost (SWaP-C) technologies and significant IoT deployments. Globalstar’s satellite network and connectivity solutions are well suited to support distributed sensing, asset tracking, and autonomous systems operating in infrastructure-limited environments. Market Alignment with Physical AI and Next-Generation Applications: Continued to align its technology portfolio with emerging trends in physical AI, where real-time data processing, automation, and intelligent systems require reliable, low-latency connectivity. Globalstar’s integrated satellite and private wireless capabilities position the Company to support these evolving use cases across industrial, enterprise, and government environments. FIRST QUARTER FINANCIAL REVIEW Revenue Total revenue for the first quarter of 2026 was $70.1 million, including $66.7 million of service revenue and $3.4 million of revenue generated from subscriber equipment sales. Service revenue increased $9.6 million, or 17%, primarily due to increased wholesale capacity services revenue, and revenue from subscriber equipment sales increased $0.4 million, or 13%, each compared to the prior year's first quarter. The increase in service revenue associated with wholesale capacity services was primarily due to additional service fees associated with the reimbursement of network-related costs. Additionally, Commercial IoT service revenue increased due to growth in the subscriber base and favorable customer pricing, and government and other services revenue increased due to higher revenue associated with our service agreement with Parsons Corporation as we moved beyond the proof of concept phase in 2025 and into the first year of service. The increase in revenue from subscriber equipment sales benefited from a higher volume of Commercial IoT and SPOT device sales. Partially offsetting the increases discussed above were declines in Duplex and SPOT service revenue due to subscriber churn over the last twelve months. Income (Loss) from Operations Income from operations was $8.2 million during the first quarter of 2026, compared to loss from operations of $8.5 million during the prior year's first quarter. This improvement was due to higher revenue (discussed above) as well as a decrease in total operating expenses. The decrease in operating expenses was due to a noncash disposal of assets recognized during the first quarter of 2025 that did not recur in 2026 as well as lower stock-based compensation and depreciation expense. Partially offsetting these decreases were higher cost of services and marketing, general and administrative ("MG&A") expenses. Higher cost of services resulted primarily from network operating costs to support the build out of our next-generation ground network infrastructure, a significant portion of which are reimbursed to us and recognized as revenue. MG&A expenses were higher than the prior year's first quarter due primarily to personnel costs and increased legal fees due to transaction costs related to the Mergers. Also contributing to the increase in cost of services and MG&A expenses was the recognition of employee retention credits received in the first quarter of 2025 that did not recur in 2026. Net Loss Net loss was $17.4 million for the first quarter of 2026, compared to $17.3 million for the prior year's first quarter. The slight increase was due to higher interest expense resulting from our recognition of non-cash imputed interest related to the 2024 Prepayment Agreement (as defined in our periodic reports) as well as net foreign currency losses due to the remeasurement of intercompany balances, offset partially by a favorable change in income from operations (discussed above). Adjusted EBITDA Adjusted EBITDA was $33.5 million during the first quarter of 2026 compared to $30.4 million during the prior year's first quarter. Higher revenue was partially offset by an increase in operating expenses (excluding adjustments for non-cash or non-recurring items) due to investment in growth opportunities. Specifically, while we continue to enhance and develop our XCOM RAN product and service offerings, we incur costs, primarily for personnel, in advance of significant revenue. Adjusted EBITDA is a non-GAAP financial measure. For more information, refer to "Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA." Liquidity As of March 31, 2026, we held cash and cash equivalents of $358.4 million, compared to $447.5 million as of December 31, 2025. During the first quarter of 2026, net cash flows generated from operations were $35.2 million, capital expenditures were $116.4 million and net cash flows used in financing activities were $8.0 million. Cash and cash equivalents were also positively impacted by a $0.2 million effect of exchange rate changes. Operating cash flows included cash flows generated from the business and a $7.5 million accelerated service fee payment from the Customer pursuant to the Updated Services Agreements. Capital expenditures were primarily associated with our commitments under the Updated Services Agreements related to the deployment of the replacement satellites and Extended MSS Network. Adjusted free cash flow during the first quarter of 2026 was $28.9 million compared to $47.6 million during the same period in 2025. This decrease was primarily due to the timing of cash receipts pursuant to the Updated Services Agreements — $7.5 million in accelerated service fees were paid to us during the first quarter of 2026 compared to $22.5 million during the first quarter of 2025. Adjusted free cash flow is a non-GAAP financial measure. For more information, refer to "Reconciliation of Non-GAAP Adjusted Free Cash Flow." The principal amount of our debt was $403.8 million at March 31, 2026, compared to $410.0 million at December 31, 2025. This decrease was due to the final recoupment of $6.3 million under the 2021 Funding Agreement. In connection with the Merger Agreement, the Company and Customer entered into an amendment to the 2024 Prepayment Agreement, pursuant to which the parties increased the maximum amount of the High Power Infrastructure Prepayment Balance (as defined in the 2024 Prepayment Agreement) by approximately $468 million to an aggregate maximum Infrastructure Prepayment amount of approximately $1.6 billion. Capitalized terms not defined herein have the meaning given to such terms in our periodic reports. SUSPENSION OF FINANCIAL OUTLOOK AND CONFERENCE CALLS In connection with the pending Mergers with Amazon.com, Inc., Globalstar does not intend to hold future earnings conference calls or provide updates to forward-looking guidance. About Globalstar, Inc. Globalstar is a global telecommunications provider connecting what matters most. Through our industry-leading low Earth orbit (LEO) satellite constellation and licensed Band 53/n53 spectrum, we deliver reliable satellite and terrestrial connectivity solutions that empower customers worldwide to connect, transmit, and communicate smarter. Our comprehensive connectivity ecosystem includes software-defined, purpose-built private wireless network platform, coupled with Globalstar Band 53™ in XCOM RAN™ and trusted GPS messengers Saved by SPOT™ for safety and personal communication for business and enterprise applications. Serving business, enterprise, and consumer markets across the globe, Globalstar supports applications that track and protect assets, enable automation, enhance operational efficiency, and safeguard lives. With unmatched reach and a relentless focus on innovation, and mission-critical performance, we're redefining what's possible for global connectivity. Note that all SPOT products described in this press release are the products of SPOT LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia. For more information, visit www.globalstar.com. Cautionary Statement About Forward-Looking Statements Certain statements contained in this press release other than purely historical information, including, but not limited to, estimates, projections or statements relating to regarding the Mergers, future revenue, financial performance, financial condition, liquidity, adjusted free cash flow, projections, estimates and guidance, statements relating to our business plans, objectives and expected operating results, our anticipated financial resources, our expectations about the future operational performance of our satellites (including their projected operational lives) and the completion and launch of new satellites, our expectations regarding the outcomes of regulatory and licensing proceedings, the expected growth prospects of our existing customers and the markets that we serve, our expectations relating to the impact of trade policies (including tariffs), our expectations about our ability to integrate the licensed technology into our current line of business, the expected benefits of the updated services agreements, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words "believe," "project," "might," "could," "expect," "anticipate," "estimate," "intend," "strategy," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Risks and uncertainties that could cause or contribute to such differences include, without limitation, our ability to complete the Mergers on the anticipated terms and timing, or at all, including obtaining required regulatory approvals and the satisfaction of other conditions to the completion of the Mergers, potential litigation relating to the Mergers, including the effects of any outcomes related thereto, the risk that disruptions from the Mergers (such as the ability of certain of our customers to terminate or amend contracts upon a change of control, or to withhold consent to such change of control) will harm our business, including current plans and operations, our ability to retain and hire key personnel, the diversion of management’s time and attention from ordinary course business operations, potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Mergers, contractual provisions that may impact our ability to pursue certain business opportunities or strategic transactions during the pendency, and/or following the completion of, the Mergers, the occurrence of any event, change, or other circumstance that could give rise to the termination of the Mergers, including in circumstances requiring us to pay a termination fee under the Merger Agreement, our ability to meet our obligations to attain the anticipated benefits under the Updated Services Agreements (as defined herein) and avoid the potential adjustment of the Merger Consideration (as defined herein) if we fail to meet certain milestones based on the Company's agreements with the Customer, and those described under Item 1A. Risk Factors of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and as updated in the Company’s other filings with the SEC. The Company undertakes no obligation to update any of the forward-looking statements after the date of this press release to reflect actual results, future events or circumstances or changes in our assumptions, business plans or other changes. This press release contains measures such as EBITDA, Adjusted EBITDA, and Adjusted free cash flow, which are not recognized under U.S. generally accepted accounting principles (GAAP). Reconciliations of these non-GAAP measures to amounts reported in the Company’s consolidated financial statements are provided in this press release. For forward-looking Adjusted EBITDA margin, the Company is unable to provide a reconciliation to the most comparable GAAP measure without unreasonable effort because estimating such GAAP measures and providing a meaningful reconciliation is extremely difficult and requires a level of precision that is unavailable for these future periods and the information needed to reconcile these measures is dependent upon future events, many of which are outside of our control as described above. Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions. View source version on businesswire.com: https://www.businesswire.com/news/home/20260507209415/en/ Contacts Investor Contact Information: [email protected]

AST SpaceMobile ASTS is scheduled to report first-quarter 2026 earnings on May 11, 2026, after market closes. The Zacks Consensus Estimate for revenues and earnings is pegged at $38.24 million and a loss of 23 cents per share, respectively. Over the past 60 days, the earnings estimate for ASTS for fiscal 2026 has increased 1%. Image Source: Zacks Investment Research The company delivered a negative four-quarter earnings surprise of 81.97%, on average. In the last reported quarter, the company delivered a negative earnings surprise of 44.44%. Image Source: Zacks Investment Research Our proven model predicts a likely earnings beat for ASTS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. ASTS currently has an ESP of +20.59% with a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. During the quarter, ASTS announced that it had been selected as a prime contractor under the U.S. Missile Defense Agency’s SHIELD program. This repositions the company from a commercial satellite-to-phone connectivity to a major player in the U.S. defense and national security ecosystem. AST’s satellite architecture can have potential use cases in military communications, command-and-control systems, surveillance and other applications. A 95% vertical integration and manufacturing process under U.S.-controlled headquarters in Texas makes ASTS a secure and trustworthy partner for the U.S. defense industry. In the quarter under review, the company secured a $30 million contract from the United States Space Development Agency (SDA) for the Europa Track 2 Commercial Solutions program. The company will integrate its commercial satellite infrastructure with existing tactical military radios to support direct satellite connectivity between government end devices. DoD aims to develop a scalable, resilient space-based defense communication architecture. This presents a solid growth opportunity for ASTS. These factors are expected to be reflected in the upcoming quarterly results. However, the direct-to-device satellite market is becoming crowded. The company faces competition from existing and new industry leaders like SpaceX’s Starlink and Globalstar, Inc. GSAT, which are developing satellite communications technology using LEO constellations. Viasat, Inc. VSAT is also expanding into space-based connectivity and collaborating with major telecom operators. Such trends can impose a challenge to ASTS’ satcom growth initiatives. Over the past year, ASTS has gained 152.2% compared to the industry’s growth of 73.2%. However, it has underperformed peers like ViaSat and Globalstar over this period. Viasat has increased 606.5%, while Globalstar has increased 307.1% during this period. Image Source: Zacks Investment Research From a valuation standpoint, ASTS is currently trading at a premium compared to the industry. Going by the price/sales ratio, the company’s shares currently trade at 65.57 forward sales, higher than 5.68 for the industry. Image Source: Zacks Investment Research ASTS is building the world’s first global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio. Several major telecom operators worldwide are collaborating with ASTS to expand their coverage in rural and remote regions. There are initiatives from several governments worldwide supporting this trend, as it will bridge the digital divide. Network operators such as AT&T, Verizon, Vodafone, Rakuten, Google, American Tower, Bell and stc Group and others aim to leverage ASTS capabilities to increase accessibility of high-speed 4G and 5G networks and support voice, full data and video applications. Recently, Telus Corporation has also leveraged ASTS’ robust space-based connectivity infrastructure to provide satellite-based cellular service across Canada. TELUS is also becoming an equity shareholder in ASTS, indicating that this is not just a service agreement but the beginning of a long-term cooperation in the connectivity domain. AST SpaceMobile’s vertically integrated manufacturing strategy mitigates these risks to some extent. The company owns the intellectual property and controls the manufacturing process for approximately 95% of all sub-systems used in its Block 2 BlueBird satellites. The company has also expanded its supplier base to reduce dependence on a single supplier and strengthen its supply chain. However, unfavorable macroeconomic conditions, such as rising inflation, higher interest rates, volatility in the capital markets, imposition of tariffs and geopolitical conflicts, often negatively impact AST SpaceMobile’s operations. Fluctuations in satellite material prices due to these factors increase capital costs and affect its financial condition. Adverse movements in foreign exchange rates are worrisome. ASTS heavily relies on third-party launch providers. Any failure, delay, or underperformance by these providers is likely to disrupt the timely deployment of its satellites, potentially delaying or preventing the SpaceMobile Service from becoming operational. Regulatory policy changes in countries where ASTS operates can also impact its operations. ASTS is set to benefit from gateway hardware sales and U.S. Government contracts. It has strategically partnered with leading telecom companies to grant customers easy access to their technology. This will likely boost commercial prospects. Moreover, growing investments from leading telecom operators such as Telus and Verizon accentuate the growing acceptance of its leading space-based communication technology. Its vertically integrated business model raises its reliability among potential clients amid growing geopolitical unrest. However, the company is yet to launch a large-scale commercial service. Its business depends on successfully executing many difficult steps simultaneously. However, owing to the stock’s premium valuation, we believe investors should remain cautious as macroeconomic factors, or economic downturns, can significantly impact overvalued stocks like ASTS. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Viasat Inc. (VSAT) : Free Stock Analysis Report Globalstar, Inc. (GSAT) : Free Stock Analysis Report AST SpaceMobile, Inc. (ASTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Amazon reported $181.5 billion in revenue, up 17% year-over-year, with operating income of $23.9 billion and a record 13.1% operating margin. AWS continues to accelerate—Q1 revenue was $37.6 billion (+28% YoY) with a $150 billion annualized run rate and AI-related services driving rapid adoption and a >$15 billion AI revenue run rate. Amazon is investing heavily in custom silicon, data‑center capacity, and satellites: Q1 cash capex was $43.2 billion, the chips business has a >$20 billion run rate with Trainium largely sold out, and the Amazon Leo satellite rollout (including a planned Globalstar deal) is moving toward commercial launch. Interested in Amazon.com, Inc.? Here are five stocks we like better. Is Oracle Undervalued as Cloud Growth Accelerates? Amazon.com (NASDAQ:AMZN) executives highlighted accelerating growth in AWS, record operating margins, and continued heavy investment in AI infrastructure and satellites during the company’s first-quarter 2026 earnings call on April 29. CEO Andy Jassy said Amazon reported $181.5 billion in revenue, up 17% year-over-year. He added that excluding a $2.9 billion favorable foreign exchange impact, net sales increased 15%. Operating income was $23.9 billion. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank UPS Stock Reversal Is Backed by Institutions—And a 6% Yield CFO Brian Olsavsky said worldwide operating income of $23.9 billion translated to a 13.1% operating margin, which he called Amazon’s highest operating margin ever. Olsavsky also broke out segment performance: North America: $104.1 billion in revenue, up 12% year-over-year; operating income of $8.3 billion; operating margin of 7.9%. International: $39.8 billion in revenue, up 11% year-over-year excluding FX; operating income of $1.4 billion; operating margin of 3.6%. AWS: $37.6 billion in revenue, up 28% year-over-year; operating income of $14.2 billion. Jassy emphasized that AWS growth “continued to accelerate,” rising 28% year-over-year—the “fastest growth rate in 15 quarters.” He said AWS revenue increased by $2 billion quarter-over-quarter, which he described as the “largest Q4 to Q1 AWS revenue increase ever,” and pegged AWS at a $150 billion annualized revenue run rate. → Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report 3 Stocks Leading the Charge in the Agentic AI Era Jassy said Amazon is seeing rapid adoption of AI and positioned AWS as a leader in the current cycle, noting that AWS’s AI revenue run rate is over $15 billion in the first three years of the current AI wave. He pointed to multiple AWS services and adoption metrics, including: Bedrock: Jassy said it saw 170% growth in customer spend quarter-over-quarter and processed more tokens in Q1 “than all prior years combined.” He said Bedrock is used by “over 125,000 customers” and that “almost 80% of the Fortune 100 companies are using Bedrock.” Amazon Q: Jassy said the number of developers using Amazon Q more than doubled quarter-over-quarter and enterprise customer usage increased nearly 10x. He also said Amazon announced “V1 of our Amazon Q desktop app yesterday.” AWS Transform: Jassy said customers have used it to save “over 1.56 million hours of manual effort” migrating and modernizing workloads. Olsavsky said AWS growth was driven by “both core and AI services,” and added that Amazon continues to see cloud migrations increase while customers “scale their use of AWS core services.” He said the company sees a “strong correlation between AI spend and core growth,” and expects that link to strengthen as more AI workloads move into production. Olsavsky also said Amazon’s AI revenue is growing “triple digits year-over-year.” → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? Jassy spent a significant portion of the call discussing Amazon’s chips strategy, calling the company’s custom silicon business “one of the top three data center chip businesses in the world,” based on Amazon’s assessment. He said the chips business saw nearly 40% quarter-over-quarter growth in Q1, with an annual revenue run rate “over $20 billion” and “growing triple-digit percentages year-over-year.” He added that if the chip business were standalone and sold chips produced this year to AWS and third parties, its annual revenue run rate would be $50 billion. On Trainium, Jassy said Amazon has “over $225 billion in revenue commitments,” and described capacity as tight: Trainium2 is “largely sold out,” Trainium3 is “nearly fully subscribed,” and “much of Trainium4…has already been reserved.” He also said Trainium will “save us tens of billions of dollars of CapEx each year and provide several hundred basis points of operating margin advantage versus relying on others’ chips for inference.” During Q&A, Jassy said the company could sell racks of Trainium over time, but that allocation decisions depend on balancing demand from existing customers versus external rack sales. “I expect over time there’s a good chance we’re gonna sell racks over the next couple years,” he said. Jassy also reiterated Amazon’s continued partnership with NVIDIA, saying Amazon will “continue to order substantial quantities,” and that “we will always have customers who want to run NVIDIA on AWS.” On investment levels, Jassy said AWS must invest ahead of demand because it typically lays out cash for land, power, buildings, and hardware “6 to 24 months before we start billing customers.” While he acknowledged that periods of high growth can pressure near-term free cash flow when capex growth outpaces revenue, he said the company has “high confidence” its 2026 AWS capex will be “monetized well,” with “customer commitments for a substantial portion of it,” yielding “compelling operating margins and ROIC.” Olsavsky said cash capex was $43.2 billion in Q1, “primarily” related to AWS and generative AI investments. In response to a question on AWS backlog, Jassy said the Q1 backlog was $364 billion and stated that figure does not include the recently announced deal with Anthropic “for over $100 billion.” He added that the backlog has “reasonable breadth” and is “not just one customer or two customers.” In Amazon’s stores business, Jassy said units grew 15% year-over-year, the highest rate since the tail end of COVID lockdowns. He said Amazon added “more than 600 new notable brands,” and discussed grocery momentum, including that Amazon is now the “second-largest grocer in the U.S.” based on “more than $150 billion in gross sales in 2025.” He said the company offers perishables delivered same-day in more than 2,300 U.S. cities and towns. Jassy said Whole Foods Market “continues to accelerate,” with “over 550 stores today and 100 more coming in the next few years.” He added that average prices on products offered on Amazon.com decreased versus the prior year period and that Prime Day will take place “in most countries in June.” On delivery speed, Jassy said Amazon delivered “more than 1 billion items same day overnight so far this year,” and highlighted expanded 1-hour and 3-hour delivery options on over 90,000 items. He also discussed Amazon Now, its 30-minutes-or-less service, noting it started in India and that orders there are increasing 25% month-over-month. Olsavsky said Amazon’s fulfillment network showed improving efficiency, with outbound shipping costs up 12% year-over-year and fulfillment expense up 9% year-over-year (both FX-neutral), while unit growth ran higher. He also said all U.S. large-format fulfillment center launches in 2026 will include Amazon’s latest generation robotics and automation technology, with early results showing “improved site safety, higher productivity, and lower cost to serve.” Amazon’s advertising business posted $17.2 billion in Q1 revenue, up 22% year-over-year, according to Jassy. He cited partnerships including an expanded Netflix relationship through Amazon Audiences and a collaboration with Comcast Advertising to expand local advertising. Jassy also said Amazon expanded its Creative Agent tool to additional countries. On AI-assisted shopping and “agentic commerce,” Jassy said Rufus monthly active users are up over 115% and engagement is up nearly 400% year-over-year. In Q&A, he argued that third-party “horizontal agents” are still early and often lack accurate pricing, product information, and personalization, while Amazon aims to make Rufus “the best shopping assistant anywhere.” Asked about advertising in an agentic world, Jassy said he believes advertising will “do well,” pointing to multi-turn agent conversations creating multiple opportunities to surface relevant products, including sponsored prompts. Jassy said Amazon Leo’s commercial service is “on track to launch in a few months,” and that the company already has “meaningful revenue commitments” from enterprises and governments, listing customers including Delta Air Lines, JetBlue, AT&T, Vodafone, DirecTV Latin America, Australia’s National Broadband Network, DP World Tour, and NASA. He also said Amazon plans to acquire Globalstar to expand Leo’s network with direct-to-device capabilities and has an agreement with Apple for Leo to power satellite services for iPhones and Apple Watches. During Q&A, Jassy said Leo had “over 250 satellites in space,” described planned launch cadence, and said performance would be “about two times better on the downlink” and “about six times better on the uplink” than existing alternatives, in his view. He said the key constraint on growth is getting the constellation into space, with “over 20 launches planned this year” and “over 30 launches planned in 2027.” Olsavsky said Q2 guidance assumes Prime Day occurs in Q2 in most large geographies, while occurring in Q3 in Australia, Brazil, India, and Japan. He guided to: Q2 net sales: $194 billion to $199 billion Q2 operating income: $20 billion to $24 billion Olsavsky said Q2 guidance includes a seasonal step-up in stock-based compensation, higher transportation costs related to fuel inflation (partially offset by a fuel and logistics-related FBA surcharge), and a year-over-year cost increase of approximately $1 billion in North America related to Amazon Leo as the company manufactures and launches more satellites. He also said Amazon expects Leo’s commercial service to launch in Q3 and expects to begin capitalizing certain costs in Q4, including production and launch costs. Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics. Key businesses and offerings include Amazon's online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising. The article "Amazon.com Q1 Earnings Call Highlights" was originally published by MarketBeat.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Globalstar (GSAT) caught investor attention after its share price climbed 11.5% in afternoon trading, coinciding with record financial results, an optimistic 2026 outlook, and sector momentum linked to SpaceX IPO headlines. See our latest analysis for Globalstar. Beyond the latest jump, Globalstar’s 1-day share price return of 10.3% sits within a broader pattern of positive momentum, with a 7-day share price return of 14.83% and a very large 1-year total shareholder return of 192.32% indicating strong recent enthusiasm that has built over time. If this kind of sector excitement has your attention, it can be useful to compare Globalstar with other space and communications names using a curated list of 33 robotics and automation stocks With Globalstar’s shares already up sharply and trading only about 3% below the average analyst price target, the key question now is simple: is there still a potential entry point here, or has the market already priced in future growth? According to the most followed narrative, Globalstar’s fair value of $3 sits far below the last close at $67.38, setting up a sharp valuation gap that stands out against the recent price move. Read the complete narrative. This narrative leans heavily on Apple’s backing, robust revenue assumptions, and a rich profit margin outlook. Want to see how those inputs combine to justify a fair value so far below today’s price and what growth profile DailyInvestors is baking in for GSAT over the coming years? Result: Fair Value of $3 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this story can break if Apple support does not translate into durable revenue or if current enthusiasm around GSAT’s recent share price performance cools quickly. Find out about the key risks to this Globalstar narrative. With sentiment this divided, it helps to look past headlines and test the numbers for yourself, then weigh them against the 2 key rewards If GSAT has you thinking bigger, do not stop here; broaden your watchlist with focused stock ideas that match your goals and risk comfort. Target potential mispricing by scanning for companies that combine quality fundamentals with attractive valuations using the 55 high quality undervalued stocks. Strengthen your income focus by reviewing companies with strong yields and resilience through the 12 dividend fortresses. Prioritise resilience by checking companies that carry lower risk scores through the 74 resilient stocks with low risk scores. 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. Companies discussed in this article include GSAT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]