Telesat Corporation (TSAT) AI Stock Analysis

Telesat Corporation is a satellite operator providing critical communications services to broadcast, enterprise, and consulting customers worldwide. Its satellite solutions support direct-to-home television programming, digital video encoding, authorization, and uplinking and downlinking capabilities. The company provides occasional use services for live sports and news broadcasts, alongside end-to-end satellite capacity and terrestrial facilities for enterprise connectivity, internet services, and cellular backhaul. Telesat also delivers rural telephony services to telecommunications carriers and serves maritime and aeronautical markets with broadband communication for vessels and airplanes. Additionally, it provides satellite services to the Canadian and U.S. governments and operates hybrid satellite and terrestrial networks.

Telesat's revenue declined over recent periods, dropping from $758.2M in FY2021 to $417.6M in FY2025, marking a 5-year revenue CAGR of -12.6%. Gross margin contracted sharply to 36.8% in FY2025 from 93.4% in FY2024 and 94.5% in FY2023. Operating margin stood at 13.7% in FY2025 after falling to -7.1% in FY2024. Net income shifted to -$155.2M in FY2025, compared to net income of $157.1M in FY2023. Over the trailing twelve months ending June 30, 2026, revenue stood at $361.7M with an operating margin of -15.1% and a net margin of -102.9%. In the quarter ended June 30, 2026, quarterly revenue fell 25.1% and quarterly earnings fell 43.8% year-over-year.

As of June 30, 2026, Telesat held $383.4M in cash and short-term investments against total debt of $3.80B, resulting in net debt of $3.41B. Shareholders' equity was $376.8M, yielding a debt-to-equity ratio of 10.07 and a current ratio of 0.17. Total assets stood at $6.76B. Operating cash flow reached $66.6M in FY2025, down from $296.4M in FY2021. Elevated capital expenditures of $764.5M in FY2025 drove free cash flow to -$697.8M. Over 5 years, share count expanded by 26.6%.

Telesat trades at an enterprise value of $3.14B and a market cap of $2.31B. Its price-to-sales ratio of 6.4x is higher than the 2.8x median of its US-listed Technology peers. However, its EV-to-EBITDA multiple of 3.0x is below the peer median of 16.6x. The stock carries an EV-to-revenue ratio of 12.2x and a price-to-book ratio of 2.8x. Over the past year, the shares gained 38.6%, outperforming the S&P 500 return of 16.8%. Over a 5-year period, TSAT generated a return of -1.6%, trailing the S&P 500 gain of 83.0%.

Wall Street analysts maintain a mean price target of $19.04 for Telesat Corporation, pointing to a 57.7% decline from its last close of $44.96. The consensus revenue estimate for the fiscal year ending December 31, 2026, is $317.6M, followed by an estimate of $270.9M for the next fiscal year, reflecting a projected revenue decline of 14.7%. Telesat exceeded EPS estimates in 2 of the past 4 quarters. The company's next earnings report is scheduled for November 3, 2026.

This page is an AI-written research summary of Telesat Corporation (TSAT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: TSAT income statement, TSAT balance sheet, TSAT key metrics, TSAT analyst forecast, TSAT chart. See the TSAT stock overview for the latest quote and news.