EchoStar Corporation’s SATS subsidiary, Hughes Network Systems, recently introduced a pioneering solution to bolster the in-flight connectivity (IFC) experience. Announced at the Satellite Show 2025, the Hughes Fusion Simultaneous Multi-Orbit IFC Solution is set to transform the in-flight experience on Delta Air Lines’ new A350 and A321neo aircraft, along with an expanded rollout on more than 400 Delta ERJ, CRJ and Boeing 717 aircraft.

Delta Air Lines has officially partnered with Hughes after rigorous system analysis, lab evaluation and in-flight testing, ensuring that the solution is ready to meet the demands of next-generation in-flight entertainment. This strategic adoption will allow Delta’s new A350, A321neo and Boeing 717 aircraft to deliver seamless gate-to-gate connectivity, providing an immersive aircraft journey.

The state-of-the-art solution will likely boost commercial aviation connectivity by blending LEO and GEO satellite capacity, enabling a seamless and reliable in-flight Internet experience. Hughes confirmed that the solution will be available on Delta’s new delivery aircraft starting in the second half of 2025. The solution not only improves the passenger experience for Delta Air Lines but also fuels the potential of multi-orbit satellite connectivity for commercial aviation.

Hughes' Innovative Offerings Build Momentum

Hughes’ commitment to satellite innovations is unlocking new growth streams for EchoStar. Management noted that Hughes has outperformed other strong players in the satellite market with its cutting-edge support and service offerings. Also, Hughes’ managed LEO business delivered more than 15,000 Hughes-manufactured user terminals in 2024. Customer feedback has been highly positive.

In September 2024, Hughes took digital signage to the next level with the launch of the HS600 Media Player. The initiative is aimed at helping businesses streamline their content delivery to any HDMI-enabled screen. In July 2024, it introduced a small business package from Hughes Managed Cybersecurity that safeguards the interests of its employees and customers. The acclaimed solution can provide cyber protection, content filtering, higher network availability, flexible Wi-Fi connectivity and real-time threat intelligence.

In May 2024, Hughes unveiled the LEO Electronically Steerable Antenna for In-Flight Entertainment & Connectivity. The premium technology provides uninterrupted, superfast and enterprise-grade connectivity for global commercial aviation.

However, potential subscriber losses at Hughes are weighing on SATS’ top-line performance. In the last reported quarter, revenues declined 5% year over year to $4 billion. 

SATS’ Zacks Rank & Stock Price Performance

At present, EchoStar has a Zacks Rank #3 (Hold). In the past year, shares have soared 84.5% compared with the Zacks Satellite and Communication industry's growth of 39.8%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Ubiquiti Inc. UI and Arista Networks, Inc. ANET. IDCC & UI presently sport a Zacks Rank #1 (Strong Buy), while ANET carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.

Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 33.3%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.

Arista delivered a trailing four-quarter average earnings surprise of 12.87%. It has a long-term growth expectation of 14.41%. It supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.

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This article originally published on Zacks Investment Research (zacks.com).

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