Earnings jump and IoT partnership put Iridium Communications in focus
Iridium Communications (IRDM) has drawn fresh attention after third quarter 2026 results showed higher revenue and net income, alongside a new IoT chipset partnership with Altair Semiconductor built around its Iridium NTN Direct service.
After a huge year-to-date share price return of 150% and a 1-year total shareholder return close to that level, momentum has cooled a little. The 30-day share price return is down 8.07% and the 90-day move is down 3.01%, as investors weigh Iridium Communications’ recent earnings jump and IoT chipset news against the run it has already had.
Spot opportunities beyond Iridium Communications by scanning a curated group of satellite, telecom, and IoT-focused plays in our 21 high quality undiscovered gems.Bulls point to Iridium Communications’ earnings surge and IoT chipset tie up as proof the rerating is justified, while bears focus on the sharp run and slowing momentum. Which side does the current valuation actually support?
Most Popular Narrative: 3% Undervalued
Iridium Communications closed at $44.40, while the most followed narrative pegs fair value closer to $46, so the stock is framed as modestly undervalued with that view hinging on execution of newer services and the Rocket Lab deal.
The premium Rocket Lab is paying for Iridium Communications, at about $8b or $54 per share, assumes the combined company will translate Iridium’s current high operating EBITDA margin and cash generation into materially higher earnings, which could leave the stock exposed if integration costs or capital needs compress margins or free cash flow.
See why 31 investors see Iridium Communications as 3% undervalued.
Result: Fair Value of $46 (UNDERVALUED)
Still, the Iridium Communications story could be knocked off course if maritime users continue shifting to cheaper backup plans or if IoT usage does not broaden meaningfully.
Find out about the key risks to this Iridium Communications narrative.
Another view on Iridium Communications’ valuation
On earnings multiples, Iridium Communications looks expensive. The stock trades on a P/E of 28.9x, compared with 15.2x for the wider Global Telecom group and a fair ratio of 12.2x. That higher starting point can limit protection if expectations around deals or growth reset.
Investors comparing these ratios with their own assumptions about Iridium Communications may want to see what the numbers imply in detail, which is laid out in the See what the numbers say about this price — find out in our valuation breakdown..
Next Steps
Mixed messages around Iridium Communications can create plenty of noise, so move quickly, review the data for yourself, and weigh up the 2 key rewards and 3 important warning signs.
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