Rocket Lab stock soared 23% today as record revenue and a massive new contract turn heads
The space launch company that once seemed too small to matter is suddenly looking very serious.
Rocket Lab shares surged more than 23% today, climbing past $97, after the company posted record first-quarter revenue and announced a landmark launch contract that has investors rethinking what this business is actually capable of. For a stock that traded below $21 just 12 months ago, the move is nothing short of dramatic.
A quarter that beat the crowd
Rocket Lab reported first-quarter revenue of $200.3 million, a 63.5% jump compared to the same period last year and the strongest quarter in company history. Gross profit margin also set a new record, hitting 38.2%. Product revenue climbed to $127.5 million from $80.8 million a year ago, and service revenue rose to $72.9 million from $41.8 million.
Net losses continue, which is typical for a company investing heavily in growth, but the loss narrowed to $45 million, or 7 cents per share, compared to $60.6 million in the year-ago period. Analysts at Citizens raised their price target on the stock to $95 from $85, while CFRA maintained a Strong Buy rating with a target of $100, pointing to improving financials and a compelling second-half setup.
The Neutron rocket is the bigger story
The quarter’s most consequential development was not the revenue figure. Rocket Lab announced its largest-ever launch contract, covering five flights of its yet-to-fly Neutron rocket alongside three missions on its proven Electron vehicle. The contract runs through 2029, and the customer name was not publicly disclosed.
Neutron is the real inflection point for this company. Designed to carry 13 to 15 tons of cargo to low Earth orbit, it can haul roughly 40 times the payload of Electron per flight. That puts it in a different competitive league, capable of handling larger satellite constellations and national security payloads that Electron simply cannot reach. A late-2026 first launch is the current target, a timeline the company itself has described as aggressive.
Rocket Lab signed more launch contracts in the first quarter of 2026 alone than it did across all of 2025, pushing its total launch backlog past 70 missions and its overall contracted backlog above $2.2 billion.
Defense deals add a new dimension
Two recent contract wins are pushing Rocket Lab deeper into U.S. defense work. The company secured a $30 million agreement with Anduril Industries for three hypersonic test launches using its HASTE vehicle from Virginia. Hypersonic missions, which involve speeds above Mach 5, now account for nearly a third of Rocket Lab’s entire launch backlog, turning what was once a niche capability into a recurring revenue stream tied directly to U.S. defense priorities.
Rocket Lab was also selected alongside Raytheon for the U.S. Space Force’s Space Based Interceptor program, which focuses on next-generation missile defense technology. That kind of strategic positioning carries weight well beyond the immediate contract value.
What the next few years could look like
Rocket Lab guided for second-quarter revenue of $225 million to $240 million, another potential record and roughly 66% year-over-year growth, faster even than the first quarter. Wall Street had expected around $205 million for the period, making the guidance range a meaningful beat before the quarter is even finished.
Looking further out, analysts forecast Rocket Lab could grow its annual revenue to roughly $8.8 billion by 2035, a tenfold increase from today. Those are projections, not promises, and the company still burns through significant cash as it scales. But with more than $2 billion in available liquidity and a backlog growing faster than its current production capacity, the foundation being assembled here is starting to look like something built to last well beyond any single quarter.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The author and publication are not registered investment advisors and do not provide personalized investment recommendations.