Rocket Lab Is Buying Iridium, and Guess What? Iridium Just Beat Earnings!

Iridium Communications (IRDM) posted Q3 2026 earnings of $0.98 per share, nearly triple the $0.34 analysts expected. The beat lands as Rocket Lab (RKLB) pursues an $8 billion acquisition of Iridium, expected to close mid-2027.

The article attributes the upside largely to Iridium's acquisition of Aireon. That matters for the deal math: RKLB is buying a business whose earnings power just came in well above consensus, which strengthens the case that the $8 billion price rests on delivered results rather than projections.

The combined company is projected to turn profitable and free cash flow positive in 2027. That timeline coincides with the expected mid-2027 close, so the projected profitability depends on the deal finishing and on the Aireon-driven earnings strength holding.

Valuation is the counterweight. RKLB trades at roughly 150x forward price-to-free cash flow, which the source calls expensive. Interpretation: the market is already pricing in a flawless integration and a sharp ramp in free cash flow, leaving little cushion if execution slips.