Press Release: Cogent Communications To Host Fourth Quarter And Full Year 2025 Earnings Call On February 20, 2026

What Happened?

A number of stocks jumped in the afternoon session after President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies. 

The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off.Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Office & Commercial Furniture company MillerKnoll jumped 3.3%. Is now the time to buy MillerKnoll? Access our full analysis report here, it’s free.
• Hardware & Infrastructure company Super Micro jumped 3.6%. Is now the time to buy Super Micro? Access our full analysis report here, it’s free.
• Terrestrial Telecommunication Services company Cogent jumped 3.3%. Is now the time to buy Cogent? Access our full analysis report here, it’s free.
• IT Distribution & Solutions company Avnet jumped 3.5%. Is now the time to buy Avnet? Access our full analysis report here, it’s free.
• Specialized Technology company Cognex jumped 3.7%. Is now the time to buy Cognex? Access our full analysis report here, it’s free.

Zooming In On Cognex (CGNX)

Cognex’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock gained 21.5% on the news that the company reported second-quarter financial results that beat Wall Street estimates and provided strong guidance for the upcoming quarter. 

The industrial machine vision specialist posted second-quarter adjusted earnings of $0.25 per share on revenue of $249 million, surpassing analyst expectations. The revenue figure marked a 4% increase from the year-ago period, propelled by growth in its logistics business and stronger trends in factory automation. Adding to the positive sentiment, Cognex provided an upbeat forecast for the third quarter, with expected revenue between $245 million and $265 million, which came in ahead of Wall Street's consensus estimate.

Cognex is up 9.4% since the beginning of the year, but at $40.41 per share, it is still trading 16.4% below its 52-week high of $48.35 from October 2025. Investors who bought $1,000 worth of Cognex’s shares 5 years ago would now be looking at an investment worth $474.35.

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Globalstar and its peers.

The sector is a tale of two cities. Satellite telecommunication is generally buoyed by rising global demand for connectivity in costly-to-connect and remote areas. On the other hand, terrestrial telecommunication companies face an uphill battle, as they mostly sell into a deflationary market, where the price of moving a bit tends to decrease over time with better technology. Despite the differences in demand drivers, companies across the entire industry must contend competition from larger telecom conglomerates and hyperscalers expanding their own networks as well as newer entrants such as SpaceX's StarLink.

The 6 telecommunication services stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.9%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Best Q3: Globalstar

Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.

Globalstar reported revenues of $73.85 million, up 2.1% year on year. This print exceeded analysts’ expectations by 7.1%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and revenue estimates.

Interestingly, the stock is up 24% since reporting and currently trades at $59.83.

Read why we think that Globalstar is one of the best telecommunication services stocks, our full report is free.

Iridium

With a constellation of 66 low-earth orbit satellites providing coverage to every inch of the planet, Iridium Communications operates a global satellite network that provides voice and data services to customers in remote areas where traditional telecommunications are unavailable.

Iridium reported revenues of $226.9 million, up 6.7% year on year, outperforming analysts’ expectations by 1.7%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.5% since reporting. It currently trades at $19.17.

Weakest Q3: Array

Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, Array (NYSE:Array) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.

Array reported revenues of $47.12 million, up 83.1% year on year, exceeding analysts’ expectations by 15.7%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 21.3% since the results and currently trades at $57.86.

Read our full analysis of Array’s results here.

Viasat

Operating a fleet of 23 satellites that orbit the Earth and beam connectivity from space, Viasat provides satellite-based communications networks and services for airlines, maritime vessels, governments, businesses, and residential customers worldwide.

Viasat reported revenues of $1.14 billion, up 1.7% year on year. This result lagged analysts' expectations by 0.6%. Taking a step back, it was still a very strong quarter as it put up a beat of analysts’ EPS estimates.

The stock is up 17.5% since reporting and currently trades at $42.08.

Read our full, actionable report on Viasat here, it’s free.

Cogent

Operating a massive network spanning 20,000 miles of fiber optic cable and connecting to over 3,200 buildings worldwide, Cogent Communications provides high-speed Internet access, private network services, and data center colocation to businesses and bandwidth-intensive organizations across 54 countries.

Cogent reported revenues of $241.9 million, down 5.9% year on year. This number missed analysts’ expectations by 1.7%. Zooming out, it was actually a strong quarter as it recorded a beat of analysts’ EPS estimates.

Cogent had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 39.6% since reporting and currently trades at $23.13.

Read our full, actionable report on Cogent here, it’s free.

What Happened?

A number of stocks traded in opposite directions in the afternoon session after geopolitical tensions between the United States and the European Union escalated, sparking fears of a renewed trade war. 

The broader markets adopted a "risk-off" mode, with investors seeking safe-haven assets amidst the uncertainty. The market's primary fear gauge, the VIX, jumped to a fresh eight-week high, signaling rising investor anxiety. The dispute, centered on Greenland, raised the possibility of a revived trade conflict, which could disrupt global supply chains and economic activity. Mega-cap technology stocks, many of which have significant international sales and operations, were particularly affected by the souring risk sentiment as a potential trade war threatens their global business models.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Satellite Telecommunication Services company Globalstar jumped 1%. Is now the time to buy Globalstar? Access our full analysis report here, it’s free.
• Terrestrial Telecommunication Services company Cogent fell 0.3%. Is now the time to buy Cogent? Access our full analysis report here, it’s free.
• Hardware & Infrastructure company Hewlett Packard Enterprise fell 4.1%. Is now the time to buy Hewlett Packard Enterprise? Access our full analysis report here, it’s free.
• Satellite Telecommunication Services company Viasat fell 6%. Is now the time to buy Viasat? Access our full analysis report here, it’s free.
• Digital Media & Content Platforms company Getty Images fell 1.9%. Is now the time to buy Getty Images? Access our full analysis report here, it’s free.

Zooming In On Viasat (VSAT)

Viasat’s shares are extremely volatile and have had 61 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 4 days ago when the stock gained 3% on the news that Morgan Stanley significantly raised its price target on the stock and the company announced new business developments. 

The investment bank increased its price target on Viasat to $51 from $12, though it maintained an Equalweight rating. In addition, the company, along with Bharat Sanchar Nigam Limited (BSNL), announced it would support the next phase of the Indian Navy's satellite communications modernization program. This plan involved deploying Viasat's high-capacity satellite systems for secure connectivity. Viasat also revealed plans to deploy a new test facility in Singapore to support air traffic operations throughout the Asia Pacific region, further reinforcing its commitment to advancing global aviation.

Viasat is up 17.7% since the beginning of the year, and at $44.28 per share, it is trading close to its 52-week high of $45.94 from January 2026. Investors who bought $1,000 worth of Viasat’s shares 5 years ago would now be looking at an investment worth $1,140.

Cogent has gotten torched over the last six months - since July 2025, its stock price has dropped 55.8% to $23.14 per share. This may have investors wondering how to approach the situation.

Is there a buying opportunity in Cogent, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free.

Why Is Cogent Not Exciting?

Despite the more favorable entry price, we're sitting this one out for now. Here are three reasons we avoid CCOI and a stock we'd rather own.

1. Weak Growth in Total Connections Points to Soft Demand

Revenue growth can be broken down into changes in price and volume (for companies like Cogent, our preferred volume metric is total connections). While both are important, the latter is the most critical to analyze because prices have a ceiling.

Cogent’s total connections came in at 118,279 in the latest quarter, and over the last two years, averaged 2.8% year-on-year growth. This performance was underwhelming and suggests it might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability.

2. New Investments Fail to Bear Fruit as ROIC Declines

ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Over the last few years, Cogent’s ROIC has unfortunately decreased significantly. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities.

3. Short Cash Runway Exposes Shareholders to Potential Dilution

As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by.

Cogent burned through $186.7 million of cash over the last year, and its $2.37 billion of debt exceeds the $226.3 million of cash on its balance sheet. This is a deal breaker for us because indebted loss-making companies spell trouble.

Unless the Cogent’s fundamentals change quickly, it might find itself in a position where it must raise capital from investors to continue operating. Whether that would be favorable is unclear because dilution is a headwind for shareholder returns.

We remain cautious of Cogent until it generates consistent free cash flow or any of its announced financing plans materialize on its balance sheet.

Final Judgment

Cogent’s business quality ultimately falls short of our standards. After the recent drawdown, the stock trades at 10.2× forward EV-to-EBITDA (or $23.14 per share). Investors with a higher risk tolerance might like the company, but we don’t really see a big opportunity at the moment. We're fairly confident there are better stocks to buy right now. We’d suggest looking at the most entrenched endpoint security platform on the market.