The satellite round the earth moves in a circular orbit. Here the force of gravity acts towards the centre of the earth and displacement of the satellite is along the tangent of the circular path that means therefore and displacement are perpendicular to each other.
So, work done, W = F.S cosθ
= F × S cos 90°
= F × S × 0
= 0
That is, no work is done by the force of gravity.