Rocket Lab Corporation (RKLB) is facing hurdles with its Neutron rocket launch, postponing it from late 2026 to 2027. The reusable medium-lift rocket has faced multiple setbacks since its announcement, mainly because of its large scale, which requires specialized processes to manufacture parts. This time, the carbon-fiber propellant domes on Neutron's first stage, which carries liquid oxygen and methane, encountered a problem when inspectors found voids within the carbon-fiber layers.
This means Rocket Lab needs to build a new forward dome, cure it, and inspect it, which it will likely complete by the end of this year. That leaves incorporating the hardware into a complete Neutron first stage and then subjecting that stage to a battery of tests. If there are no further issues, the whole process will be completed by the first quarter of 2027.
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Neutron, a larger launch vehicle than Electron, was expected to provide a solid revenue stream because it can carry heavier payloads. However, now the company faces some uncertainties. While the launch remains firmly on the cards, the postponement has raised some doubts about its manufacturing.
On the other hand, the long-term investment thesis on Rocket Lab remains intact, provided investors can withstand the change in revenue timing. Stifel now expects one or two Neutron launches in 2027, down from three, delaying launch and milestone revenue. It sees limited impact on Rocket Lab’s launch schedule and unchanged demand.
Against this backdrop, let's take a closer look at the company ahead of its Q3 results.
About Rocket Lab Stock
Rocket Lab is an end-to-end space company headquartered in Long Beach, California, serving commercial, government, and national-security customers. Its operations span launch services, spacecraft design and manufacturing, satellite components, and on-orbit management. The company has a market capitalization of $34.32 billion.
The company’s Launch Services segment provides dedicated and rideshare missions using the Electron small orbital rocket and the HASTE suborbital system for hypersonic testing. Its Space Systems segment produces satellite platforms, flight software, solar systems, reaction wheels, radios, separation systems, and other spacecraft components.
Rocket Lab shares are down over the past year mainly because investors have repriced a richly valued growth stock after repeated delays to its key Neutron rocket and concerns about cash burn and competition. RKLB stock is down 21% over the past 52 weeks and 41% over the past six months. It had reached a 52-week high of $151 on May 27 but is down 67% from that level.
Rocket Lab’s forward-adjusted price-to-sales (P/S) ratio of 33.48x is significantly higher than the industry average of 1.75x.
www.barchart.com Rocket Lab Posts Record Q2 Revenue and Backlog as Space Systems Demand Accelerates
The second-quarter results indicated that Rocket Lab is flying high on robust demand. The company’s total revenues increased 62% year-over-year (YoY) to a record $234.07 million, up $34 million from last quarter’s record, driven by product revenues rising 95.6% YoY to $181.35 million.
Rocket Lab’s backlog rose to $2.36 billion. Including new deals signed since then, Rocket Lab has secured more than $1 billion in new launch and space-systems contracts entering the third quarter. The company won over $437 million in new Electron, HASTE, and Neutron launch contracts during and after Q2, lifting its launch backlog to a record 90-plus missions.
The company’s non-GAAP gross margin increased from 36.9% in Q2 2025 to 41.5% in Q2 2026. Rocket Lab’s adjusted EBITDA loss dropped from $27.58 million to $8.83 million over the same period.
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 third quarter (to be reported on Nov. 9, after the market closes).
Here’s What Analysts Think About RKLB Stock
Recently, KeyBanc analysts lowered the price target on RKLB stock from $135 to $100, while keeping a bullish “Overweight” rating. The firm made this move after the company announced a delay in the Neutron launch. KeyBanc’s Michael Leshock said the firm cut estimates for one fewer revenue-generating launch in 2027, with the lower target reflecting Neutron’s revised timeline and valuation pressure across high-growth space stocks. Barclays analysts also initiated coverage on Rocket Lab’s stock with an “Overweight” rating and an $85 price target.
Citi’s senior analyst John Godyn believes that RKLB has bottomed out and could see a meaningful recovery in 2027. The analyst assigned a “Buy” rating and a $105 price target. Godyn called the stock a “core holding for space bulls” because of the company’s vertical integration. According to the Citi analyst, Rocket Lab is “one of the only companies on the planet delivering regular commercial access to orbit.”
Rocket Lab 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 an 102% upside from current levels. Moreover, the Street-high price target of $150 reflects a 197% upside.
Bottom Line
Launch delays have raised questions about Neutron, especially in a highly competitive market landscape. The company needs to prove its manufacturing merit. Therefore, it might be wise to just observe RKLB stock for now.
www.barchart.com On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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