Iridium Q3 2026: The EPS Beat That Masks a Rougher Quarter
As seen on the 24/7 Wall St. homepage on October 20, 2026.
The EPS beat is almost entirely a $103.9 million accounting gain from closing the Aireon deal: revenue missed expectations and operating income fell 55% year over year. What matters more is the dividend going to $0.16 a share in Q4 and the Rocket Lab takeover, already approved by 99.6% of holders, tracking to close by mid-2027.
Continue ReadingShow less
Iridium posted $0.98 in diluted earnings per share against a $0.41 consensus estimate, but almost the entire gap comes from a single accounting gain tied to the closing of its Aireon acquisition on July 2, 2026, not from anything the core satellite business earned in the quarter.
Strip that gain away and operating income fell nearly 55% year over year to $31.6 million, weighed down in part by transaction-related expenses. Revenue rose 8.3% year over year while missing expectations, with declines in voice and data service, broadband, and subscriber equipment only partially offset by a surge in hosted payload and other data service revenue tied to the Aireon deal.
The Aireon acquisition also pushed net leverage to 4.2 times trailing twelve-month OEBITDA, a figure investors will need to weigh against the dividend increase the board announced alongside these results. Starting with the Q4 2026 payment, the quarterly dividend rises to $0.16 per share from the $0.15 paid in Q3.
The pending Rocket Lab acquisition overhangs the quarter. Iridium stockholders approved the deal with 99.6% of votes in favor on September 24, 2026, and the transaction is expected to close by mid-2027 subject to remaining regulatory approvals. CEO Matt Desch called the vote an important milestone.
The U.S. Space Force extended the EMSS Contract through March 2027, with a full renewal expected in 2027. That contract represents a steady government revenue stream, and its fate matters for how Iridium looks as a standalone entity before any Rocket Lab deal closes.
Mentioned: IRDM