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

Iridium Communications reported Q3 2026 earnings that significantly exceeded analyst expectations, with earnings of $0.98 per share versus the predicted $0.34, driven largely by its acquisition of Aireon. This strong performance is positive news for Rocket Lab, which is acquiring Iridium in an $8 billion deal expected to close mid-2027. The combined entity is projected to become profitable and free cash flow positive in 2027, though at current valuations, Rocket Lab stock appears expensive at a 150x forward price-to-free cash flow ratio.