Rocket Lab Corporation (NASDAQ:RKLB) shares are trading lower Tuesday after the company reported mixed third-quarter financial results Monday after the market closed. Also, Cantor Fitzgerald maintained an Overweight rating on the stock and lowered its price target from $122 to $111.
- Rocket Lab stock is showing notable weakness. Why is RKLB stock dropping?
Rocket Lab Beats on Revenue with Record $268M, but Misses on EPS
Rocket Lab reported a third-quarter adjusted loss of 8 cents per share, wider than the consensus estimate of a loss of 7 cents. Adjusted earnings per share excludes a loss on extinguishment of debt. It reported record revenue of $267.834 million, up 73% from a year earlier and $34 million higher than the second quarter, beating the consensus estimate of $255.709 million.
“Q3 2026 was a defining quarter for Rocket Lab,” said Sir Peter Beck, the company’s founder and CEO. “Our end-to-end space strategy is delivering exactly as designed.”
Backlog Reaches Record $3.6B, Neutron Launch Contracts Top $515M
Rocket Lab ended the quarter with a record backlog of about $3.6 billion, up 52% from the end of the second quarter. It signed about $1 billion in new launch contracts across Electron, HASTE and Neutron, which brings its total launch backlog to a record 117 launches, along with $470 million in new Space Systems contracts.
Rocket Lab secured more than $515 million in Neutron launch contracts from constellation operators, growing the Neutron backlog to 16 missions ahead of its debut and lifting the base launch price to $70 million for several of them as industry launch capacity tightens.
Neutron’s first launch is now targeted for no earlier than 2027, and Rocket Lab said critical milestones continue across assembly, integration, testing and delivery of first flight hardware to Launch Complex 3.
Twelve Rocket Lab Spacecraft Launched in the Quarter, Iridium Acquisition Is Fully Funded
Twelve Rocket Lab-built spacecraft launched to orbit and are now operating, including eight satellite platforms for Globalstar’s direct-to-device constellation, twin spacecraft for NASA’s Mars science mission, the VICTUS HAZE mission for the U.S. Space Force and a spacecraft for Viasat. More than 55 spacecraft are in development and build.
Rocket Lab fully funded its pending acquisition of Iridium Communications through a completed at-the-market equity offering, received approval from Iridium’s lenders to keep its credit facility after the transaction, and won approval from Iridium shareholders.
Analyst Reaction
Cantor Fitzgerald analyst Andres Sheppard maintained an Overweight rating on Rocket Lab and lowered his price target to $111 from $122.
Rocket Lab Fourth Quarter Guidance
For the fourth quarter, Rocket Lab expects revenue of $270 million to $290 million.
Rocket Lab Shares Slip
RKLB Price Action: At the time of publication, Rocket Lab shares are trading 7.76% lower at $54.29, according to data from Benzinga Pro.
Image via Shutterstock
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