RKLB Q4 Earnings Loom: Should You Buy the Stock Ahead of Results?

Rocket Lab USA, Inc. RKLB is slated to report fourth-quarter 2025 results on Feb. 26, 2026, after market close.

The Zacks Consensus Estimate for revenues is pegged at $177.9 million, indicating an improvement of 34.4% from the year-ago quarter’s reported figure. The consensus mark for the bottom line is pegged at a loss of five cents per share, implying an improvement from the prior-year quarter’s reported loss of ten cents.

Image Source: Zacks Investment Research

RKLB’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed in three, the average surprise being 11.51%.

Image Source: Zacks Investment Research

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for RKLB this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Rocket Lab has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

A Recent Defense Release

The Boeing Company BA incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $5.90 per share.

Revenues amounted to $23.95 billion, which outpaced the consensus estimate of $21.73 billion by 8%. The top line also surged 57.1% from the year-ago quarter’s reported figure of $15.24 billion.

A Stock Worth a Look

Draganfly DPRO is set to report fourth-quarter 2025 earnings soon. It has an Earnings ESP of +4.00% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Draganfly’s loss is pegged at 13 cents per share, indicating year-over-year improvement. The consensus estimate for its sales is pegged at $1.7 million, indicating year-over-year growth of 46.5%.

Key Factors to Consider

Higher revenues generated from growth in the number of launch missions, as well as solid revenue contributions from strong bookings witnessed in the prior quarters, are likely to have bolstered the top line of the Launch Services business segment.

Solid growth in spacecraft and satellite manufacturing is likely to have boosted revenue growth for its Space Systems business segment.

What is Likely to Have Impacted RKLB’s Bottom Line?

Healthy revenue contributions from both of its segments are likely to have supported Rocket Lab’s overall performance in the fourth quarter.

The strong revenue outlook is also expected to have contributed to earnings growth during the period. However, higher operating expenses due to continued investment in the Neutron program, expansion of its workforce, increased research and development spending, and higher IT costs, including enhanced cybersecurity requirements for U.S. government programs, are likely to have put pressure on operating margins. As a result, these factors are likely to have limited the improvement in overall earnings.

Price Performance & Valuation

RKLB’s shares have exhibited an upward trend, gaining a notable percentage over the past year. Specifically, the stock soared 229.2% in the time frame, outperforming the Zacks aerospace-defense equipment industry’s growth of 46.1%. It has also outpaced the broader Zacks Aerospace sector’s return of 39.4% as well as the S&P 500’s gain of 18.5%.

Image Source: Zacks Investment Research

Shares of Draganfly and Boeing have surged 203.9% and 34.8%, respectively.

In terms of valuation, RKLB’s forward 12-month price-to-sales (P/S) is 40.65X, a premium to its industry’s average of 12.65X. This suggests that investors will be paying a higher price than the company's expected sales growth compared with its industry’s P/S ratio.

Image Source: Zacks Investment Research

Its industry peers are currently trading at a discount compared with RKLB. While the forward 12-month price/sales multiple for DPRO is 2.38X, the same for BA is 1.86X.

Investment Thesis

According to a report from GlobalData, the space economy market will witness a compound annual growth rate of 4% during the 2026-2029 period. This favorable outlook highlights the long-term growth opportunities for space-focused companies like Rocket Lab.

However, the company continues to face certain challenges that investors should keep in mind. One key concern is its high operating expenses, mainly due to ongoing investments in new product development and technology improvements. These elevated costs often reduce the benefits of strong revenue growth and have led to recurring quarterly losses.

Should You Buy RKLB Stock Before Q4 Earnings?

RKLB appears well-positioned ahead of its fourth-quarter 2025 results, supported by solid revenue growth expectations. However, given its premium valuation compared with the broader industry, new investors may prefer to stay cautious and wait for the upcoming earnings release before taking a position in the stock.

Zacks Names #1 Semiconductor Stock

This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research