Space exploration company Rocket Lab (RKLB) is set to report its third-quarter results for fiscal 2026 on Nov. 9, after the market closes. Ahead of that, the stock price took a hit after the company delayed the launch of its partially reusable, medium-lift launch vehicle, Neutron, from late 2026 to 2027, as inspectors found voids in the carbon-fiber layers of its forward dome. Rocket Lab had to add "mitigations" to the dome's manufacturing process, delaying the launch into next year.
However, short-term setbacks aside, Neutron is expected to be a game-changer in its field, as it can address launch-capacity constraints for small and medium satellites. Moreover, NASA has cited Rocket Lab as a launch provider for future commercial space station missions as the ISS nears retirement. This could significantly expand Neutron's addressable market and support a broader platform.
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Rocket Lab is also working to build a more comprehensive platform through the pending acquisition of satellite communications network provider Iridium Communications (IRDM), which would give the company an immediate entry point into space-based applications.
As the company expands its platform, we take a closer look ahead of its Q3 earnings.
About Rocket Lab Stock
Rocket Lab is an aerospace firm headquartered in Long Beach, California. It helps customers launch satellites using its Electron rocket and is developing the larger Neutron rocket for heavier missions. The company also designs and builds satellites and spacecraft parts and provides services to manage satellites in orbit.
Rocket Lab serves both commercial and government customers, supporting missions such as communications, Earth observation, national security, and science. Its New Zealand launch site enables flexible, reliable launch scheduling. Overall, Rocket Lab aims to make access to space faster, easier, and more affordable. The company has a market capitalization of $33.49 billion.
Over the past 52 weeks, Rocket Lab's stock has dropped 2%, and it is down 35% over the past month. It had reached a 52-week high of $151 on May 27, but is down 68% from that level. Investors have reassessed its high valuation, but the biggest catalyst behind the losses has been the delay of Neutron's first launch. Concerns also linger about the pending Iridium acquisition.
Rocket Lab's forward-adjusted price-to-sales ratio of 32.67x is significantly higher than the industry average of 1.76x.
Strong Second-Quarter Results
The second-quarter results showed robust demand. Rocket Lab's total revenues increased 62% year-over-year (YoY) to a record $234.07 million, as product revenues rose 95.6% YOY to $181.35 million. The company's non-GAAP gross margin increased from 36.9% in Q2 2025 to 41.5% in Q2 2026. Moreover, its adjusted EBITDA loss dropped from $27.58 million to $8.83 million over the same period.
Rocket Lab's backlog rose to $2.36 billion. Including new deals signed since then, the company has secured more than $1 billion in new launch and space-systems contracts entering the third quarter.
Wall Street analysts are optimistic about Rocket Lab's ability to reduce its bottom-line losses. For fiscal 2026, loss per share is projected to decrease 47.4% annually to $0.20, followed by a 55% improvement to $0.09 in fiscal 2027. However, they expect the company's loss per share to increase by 400% YoY to $0.05 for the about-to-be-reported third quarter.
What Do Analysts Think About RKLB Stock?
This month, analysts at Citizens reiterated a "Market Outperform" rating and a $90 price target on Rocket Lab's stock. Earlier, the firm's analysts lowered the price target from $130 to $90 after Neutron's launch was pushed to 2027. This was considered a setback rather than an entire change in thesis. Cantor Fitzgerald analysts reiterated an "Overweight" rating and a $122 price target on RKLB stock last month, observing strong demand for its Electron rocket and the Neutron update. Cantor Fitzgerald estimates Neutron's first launch will occur in the second quarter of next year.
RKLB stock has become a widely followed name on Wall Street, with analysts awarding it a consensus "Strong Buy" rating. Of the 22 analysts rating the stock, a majority of 16 analysts have given it a "Strong Buy" rating, two analysts rated it "Moderate Buy," while four analysts are taking the middle-of-the-road approach with a "Hold" rating. The consensus price target of $101.71 represents a 121% upside from current levels. Moreover, the Street-high price target of $150 reflects a 226% upside.
On the date of publication, Anushka Dutta did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
