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Eutelsat Meets Revenue Forecasts as OneWeb Gains Government Clients Amid Geopolitical Shifts

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Eutelsat reported €300 million in third-quarter revenue for its 2024–25 fiscal year, slightly below last year’s figure but in line with analyst expectations. The French satellite operator, which owns OneWeb, the world’s second-largest low-Earth orbit (LEO) satellite constellation, is seeing a rise in government demand for secure, non-American and non-Chinese satellite services.

Key Financials:

  • Q3 revenue fell 1.9% year-on-year

  • Analyst consensus was €302 million, with estimates ranging from €294 million to €307 million

  • Government services revenue rose 10.2%, the fastest-growing segment, fueled by geopolitical demand for independent satellite connectivity

Strategic Positioning:

Eutelsat’s OneWeb network, with over 600 LEO satellites, offers secure broadband services to governments and militaries at approximately 1,200 km altitude. This positions it as a European alternative to SpaceX’s Starlink, which has over 7,000 satellites and deep traction with commercial clients.

Eutelsat CFO Christophe Caudrelier emphasized the strategic importance of non-U.S. and non-Chinese alternatives in satellite communication:

“With the current geopolitics, there is interest from many countries… Many non-aligned countries are seeking alternative, non-American, non-Chinese solutions,” he stated.

Challenges & Developments:

  • The company experienced a drop in its U.S. Department of Defense contract renewal rate to 50%, citing structural changes in U.S. spending under President Donald Trump’s administration. Without that one-off, the renewal rate would have been closer to 70%.

  • Eutelsat also took a €16 million revenue hit due to EU sanctions requiring the cessation of Russian channel broadcasts.

  • The firm is actively seeking new capital investors to support its future financing needs.

Despite the recent CEO replacement, Eutelsat reaffirmed its full-year outlook, signaling stability in operations as it navigates market transitions and growing demand for secure satellite services from non-aligned nations.

Palantir Shares Tumble Over 13% Despite Revenue Beat and Upgraded Forecast

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Palantir Technologies (PLTR.O) saw its stock plunge more than 13% on Tuesday, as investors reacted negatively to quarterly results and a raised full-year forecast that fell short of Wall Street’s elevated expectations. This comes after the stock had soared 63% year-to-date, following a quadruple gain in 2023, driven by optimism around its AI capabilities and government contracts.

The Denver-based data analytics firm reported first-quarter revenue of $883.9 million, a 39% year-over-year increase, and above analyst expectations of $862.8 million, according to LSEG. U.S. government revenue surged 45%, highlighting continued momentum in federal and defense sectors.

Despite the beat, analysts say the market had already priced in strong performance, leaving little room for upside. “We believe we have reached a point where respectable earnings beats and raised guidance aren’t enough to materially move the stock to the upside,” said Morningstar analyst Mark Giarelli.

Palantir now forecasts 2024 revenue between $3.89 billion and $3.90 billion, up from the prior estimate of $3.74 billion to $3.76 billion. The company also noted a record number of $1 million+ deals, with strong customer growth in U.S. commercial sectors such as healthcare, energy, and automotive.

However, valuation concerns are mounting. Palantir’s 12-month forward P/E ratio stands at 202.07, significantly higher than that of industry peers like Snowflake (131), Datadog (54.81), and Salesforce (23.48). If the stock decline holds, the company is poised to shed over $40 billion from its $292 billion market cap.

Despite the sell-off, at least nine brokerages raised their price targets for Palantir post-earnings, pushing the median target to $96.46 — a sign of continued long-term confidence in the firm’s AI-driven growth.

Italy Tests Starlink Antennas in Embassies, No National Security Deal Yet

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Italy has begun testing Starlink antennas in four of its embassies globally, marking an early experiment in securing communications for government officials, but has not yet entered into any formal national security contract with Elon Musk’s Starlink. According to Luca Ciriani, the country’s Minister for Parliamentary Relations, the antennas are part of trials to test their functionality but are not currently active for official communication.

The right-wing government of Italy is exploring solutions to guarantee encrypted communications between diplomats and defense officials, particularly in high-risk regions. Starlink has emerged as one of the potential providers, but the government’s discussions with Musk’s company have raised concerns. Critics, particularly opposition politicians, have voiced strong opposition, questioning the prudence of allowing a foreign businessman with ties to U.S. President Donald Trump to handle a sensitive aspect of the nation’s security.

As of now, the antennas have been installed in embassies in Burkina Faso, Bangladesh, Lebanon, and Iran, but none have been used for active communication. The government confirmed that the antennas were only activated for testing purposes, with plans to suspend and potentially reactivate them when needed.

Ciriani emphasized that the antennas would not be used to transmit classified information and that Italy has not entrusted any critical infrastructure to Starlink. The trials have been conducted through third-party contracts, not a direct agreement between Italy and SpaceX, the parent company of Starlink.

Starlink, with a constellation of 6,700 satellites, is the leading player in the satellite communications industry. However, Eutelsat, a Franco-British competitor managing around 650 low Earth orbit satellites, is also in discussions with the Italian government. Reports suggest that Italy is considering a potential five-year contract worth 1.5 billion euros ($1.63 billion) for satellite communication services.