GEO Weakness Offsets LEO Gains, Funding Progress Offers Near-Term Relief
 
Results miss. Q1 revenue was €293M, down 2% y/y on continued GEO weakness and down 13% q/q due to equipment sales in the prior quarter. Eutelsat reiterated full-year FY26 revenue guidance (flat at €1.2B), as GEO erosion (-12% y/y) continues to outweigh LEO growth (+50% y/y).
Video tumbles. Revenues fell 12% y/y to €133M, marking the steepest decline in three years. The drop was intensified by a €16M (FY26) annual impact from new Russian sanctions, with no major renewals expected this year.s Near-Term Relief
Government a bright spot. Revenues grew 13% y/y to €52M driven by OneWeb uptake, particularly in Ukraine. The new 10-year DGA framework provides long-term visibility, though revenue recognition is back-end loaded to the out-years. We forecast a ~14% FY25-27 CAGR to €277M as non-US sovereign demand rises in Europe and Asia.