Rocket Lab USA Inc. (NASDAQ: RKLB) saw its stock climb 6.6% in premarket trading Friday, reaching $83.79, following the release of record first-quarter financial results and the announcement of its largest launch agreement to date. The company reported revenue of $200.3 million for the quarter ended March 31, 2026, a 63.5% increase year-over-year, driven by robust growth in both its launch services and space systems divisions.
Record Financial Performance
The company's GAAP gross margin improved to 38.2%, up from previous quarters, as product revenue surged to $127.5 million compared to $80.8 million a year earlier. Service revenue also climbed, reaching $72.9 million versus $41.8 million in the prior-year period. Rocket Lab narrowed its net loss to $45.0 million, or $0.07 per share, down from a loss of $60.6 million a year ago. Looking ahead, management guided for second-quarter revenue between $225 million and $240 million, which would set another record if achieved.
Neutron Rocket Secures Landmark Launch Contract
Perhaps the most significant development was the signing of a multi-launch contract—the largest in company history—covering five flights of the upcoming Neutron rocket and three Electron missions, scheduled between 2026 and 2029. The customer's identity was not disclosed. This agreement brings Rocket Lab's total launch manifest to over 70 missions, and the company's backlog of contracted but unfinished work now exceeds $2.2 billion.
CEO Peter Beck emphasized that the contract demonstrates the market's need for additional launch capacity, particularly as Neutron targets the medium-lift segment currently dominated by larger rockets like SpaceX's Falcon 9. Neutron, designed to be a reusable vehicle, is intended to carry heavier satellite constellations and national security payloads. The company is targeting a late-2026 first flight, a timeline Beck described as "aggressive." The rocket's Archimedes engines are expected to deliver thrust comparable to the Falcon 9.
Defense and National Security Contracts
U.S. defense spending continues to be a significant growth driver for the space sector. Rocket Lab secured a $30 million contract from Anduril Industries for three HASTE hypersonic test launches, which involve speeds of Mach 5 or above. Additionally, the company was selected alongside Raytheon for the U.S. Space Force's Space Based Interceptor initiative. Brad Clevenger, President of Rocket Lab USA, highlighted the national security priority of next-generation missile defense.
Supply Chain and Acquisition
To strengthen its supply chain, Rocket Lab announced a definitive agreement to acquire Motiv Space Systems, a Pasadena, California-based robotics and motion-control company. The deal is expected to close in the second quarter of 2026. Motiv CEO Chris Thayer described the acquisition as a "natural next step" for the combined entity.
However, the company continues to face operational challenges. Operating cash outflow for the quarter was $50.3 million, and supply-chain disruptions have delayed some deliveries related to an MDA spacecraft-bus contract. The potential size of any liquidated damages remains uncertain as backlog growth outpaces production capacity.
Analyst Reactions
Wall Street responded positively to the earnings beat. Citizens analyst Trevor Walsh raised his price target on Rocket Lab to $95 from $85, maintaining a Market Outperform rating. The analyst highlighted the quarter's performance that exceeded expectations, according to StreetInsider.
Investors are now focused on the next major milestone: transitioning Neutron from a booked lineup to an operational rocket on the launch pad. While the quarter demonstrates strong demand across launch services, spacecraft systems, and defense, the true test will be execution on the Neutron timeline.
