Iridium (IRDM) Q2 2026: Revenue Solid, EPS Misses by 69% on Merger Costs
As seen on the 24/7 Wall St. homepage on July 22, 2026.
Revenue beat by 2.2% to $225.2M with subscriber growth accelerating, but Iridium's bottom line cratered as $14.3M in Rocket Lab merger costs slashed earnings to $0.09, missing by 69%. The satellite operator won't hold earnings calls or issue guidance while the $8B all-stock deal awaits mid-2027 close.
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Iridium Communications posted Q2 2026 revenue of $225.2 million, edging past the $220.4 million consensus estimate by about 2.2%, with subscriber growth picking up pace. The top-line strength, however, was entirely overshadowed on the bottom line, where reported earnings per share came in at just $0.09 against an estimated $0.29 — a miss of nearly 69%.
$14.3 million in costs tied to the pending Rocket Lab merger deal were the primary culprit dragging earnings down so sharply. That all-stock transaction is valued at roughly $8 billion and is not expected to close until mid-2027, meaning these deal-related charges could continue to weigh on reported profits for several more quarters.
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While the merger remains pending, Iridium has suspended its earnings calls and is not issuing forward guidance, leaving investors with less visibility than usual. The EPS miss is the second consecutive quarter in which reported earnings fell short of estimates, following a similar shortfall in Q1 2026, though it is by far the largest margin of underperformance in the past eight quarters of results.
Mentioned: IRDM