RKLB Earnings: Rocket Lab Stock Slides despite Strong Q4 Results

FomoAnxiety · 2026-02-27T03:21:13+00:00

Rocket Lab reported a Q4 FY 2025 loss of -$0.09 EPS, outperforming estimates, with a 35.8% revenue increase to $179.65 million. The company initiated 21 successful launches and raised its backlog to $1.85 billion, while outlook for Q1 2026 indicates potential revenue of up to $200 million. Analyst ratings suggest a Moderate Buy for RKLB stock.

FomoAnxiety

2026-02-27 03:21:13

Abstract generation in progress

Shares of Rocket Lab USA RKLB +3.49% ▲ fell in after-hours trading after the aerospace company reported earnings for its fourth quarter of Fiscal Year 2025. Earnings per share came in at -$0.09, which beat analysts’ consensus estimate of -$0.10 per share. In addition, sales increased by 35.8% year-over-year, with revenue hitting $179.65 million. This also beat analysts’ expectations of $176.83 million. For the full year, revenue was $602 million, up 38% from the prior year.

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At the same time, Rocket Lab completed a record 21 launches during the year with a perfect mission success rate. Importantly, the development of the company’s larger Neutron rocket also progressed, although its first launch has now been pushed to the fourth quarter of 2026 due to a testing issue. Meanwhile, the company secured an $816 million deal to build 18 missile-tracking satellites, which helped drive its backlog to $1.85 billion. This is significantly higher than prior periods, as demonstrated below.

Moreover, Rocket Lab signed more than 30 new launch contracts with defense, commercial, and scientific customers. The company also introduced new solar array technology that’s designed to power future space-based data centers and made two strategic acquisitions to improve its manufacturing and optical capabilities.

2026 Guidance

Looking ahead, Rocket Lab provided its outlook for the first quarter of 2026. Management expects revenue between $185 million and $200 million, along with GAAP gross margins of 34% to 36% and non-GAAP margins of 39% to 41%.

Meanwhile, operating expenses are projected to range from $120 million to $126 million on a GAAP basis. As a result, the company anticipates an adjusted EBITDA loss between $21 million and $27 million for the quarter.

Is RKLB Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on RKLB stock based on five Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RKLB price target of $92 per share implies 27.6% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.

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