Rocket Lab (NASDAQ:RKLB) Posts Earnings Results, Misses Expectations By $0.02 EPS

Posted by Geri Gentry on Aug 11th, 2026

Rocket Lab (NASDAQ:RKLB – Get Free Report) announced its quarterly earnings results on Monday. The rocket manufacturer reported ($0.08) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.02), FiscalAI reports. Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The firm had revenue of $234.07 million for the quarter, compared to the consensus estimate of $231.62 million.

Here are the key takeaways from Rocket Lab’s conference call:

Positive Sentiment: Rocket Lab reported record Q2 revenue of $234 million, up 62% year over year, with adjusted EBITDA loss of $8.8 million—better than guidance. Q3 revenue is forecast at $250 million-$265 million.
Positive Sentiment: Demand remains strong, with more than $1 billion in launch and Space Systems contracts signed during Q2 and after quarter-end, including a $266 million Space Force HASTE contract and a $397 million Flatellite satellite program. Backlog reached a record $2.36 billion.
Positive Sentiment: Neutron development is advancing toward delivery to the launch pad in Q4 2026, supported by more than 400 Archimedes engine hot fires and early production of flight engines. Management said customer demand is already high and indicated Neutron pricing could rise as launch capacity remains constrained.
Positive Sentiment: The proposed acquisition of Iridium, expected to close in mid-2027 pending shareholder and regulatory approval, would add a 66-satellite communications constellation, more than 2.5 million subscribers, and roughly $870 million in annual revenue. Rocket Lab expects the combination to accelerate growth in IoT, positioning, defense, aviation, and other space applications.
Negative Sentiment: Cash consumption is increasing as Rocket Lab funds Neutron development, infrastructure, and follow-on vehicle production; Q2 free cash flow was negative $110.1 million and operating cash flow was negative $84.1 million. Management expects elevated negative free cash flow to continue, with cash-flow positivity potentially arriving 18-24 months after Neutron’s first successful test flight.

Rocket Lab Trading Down 3.4%

Rocket Lab stock opened at $80.04 on Tuesday. Rocket Lab has a 1 year low of $37.57 and a 1 year high of $151.00. The firm’s 50 day moving average price is $88.02 and its 200-day moving average price is $85.69. The company has a debt-to-equity ratio of 0.02, a current ratio of 4.47 and a quick ratio of 4.02. The stock has a market cap of $46.32 billion, a P/E ratio of -250.13 and a beta of 2.60.

Insider Activity

In related news, SVP Arjun Kampani sold 88,000 shares of the firm’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $107.98, for a total transaction of $9,502,240.00. Following the completion of the transaction, the senior vice president directly owned 264,705 shares of the company’s stock, valued at approximately $28,582,845.90. This trade represents a 24.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Alexander R. Slusky sold 60,000 shares of Rocket Lab stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $149.40, for a total transaction of $8,964,000.00. Following the completion of the sale, the director owned 374,675 shares in the company, valued at approximately $55,976,445. This represents a 13.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 3,749,294 shares of company stock valued at $351,008,208 in the last quarter. Company insiders own 8.40% of the company’s stock.

Hedge Funds Weigh In On Rocket Lab

Hedge funds have recently bought and sold shares of the business. Equitable Holdings Inc. boosted its stake in shares of Rocket Lab by 4.7% during the fourth quarter. Equitable Holdings Inc. now owns 4,658 shares of the rocket manufacturer’s stock valued at $325,000 after purchasing an additional 207 shares during the period. MetLife Investment Management LLC lifted its holdings in Rocket Lab by 0.9% during the 4th quarter. MetLife Investment Management LLC now owns 26,721 shares of the rocket manufacturer’s stock valued at $1,864,000 after buying an additional 232 shares in the last quarter. Parallel Advisors LLC lifted its holdings in Rocket Lab by 14.2% during the 4th quarter. Parallel Advisors LLC now owns 2,612 shares of the rocket manufacturer’s stock valued at $182,000 after buying an additional 324 shares in the last quarter. Parkside Financial Bank & Trust boosted its holdings in shares of Rocket Lab by 96.0% in the fourth quarter. Parkside Financial Bank & Trust now owns 692 shares of the rocket manufacturer’s stock valued at $48,000 after purchasing an additional 339 shares during the period. Finally, Mcguire Capital Advisors Inc. bought a new position in shares of Rocket Lab during the 4th quarter worth $27,000. Institutional investors own 71.78% of the company’s stock.

Analyst Ratings Changes

RKLB has been the subject of a number of research analyst reports. TD Cowen lifted their target price on Rocket Lab from $90.00 to $120.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Needham & Company LLC reaffirmed a “buy” rating and set a $120.00 price target on shares of Rocket Lab in a report on Tuesday, June 30th. Piper Sandler began coverage on Rocket Lab in a research report on Wednesday, July 15th. They set a “neutral” rating and a $83.00 price objective on the stock. New Street Research assumed coverage on Rocket Lab in a report on Wednesday, May 13th. They issued a “buy” rating and a $150.00 price objective for the company. Finally, KeyCorp raised Rocket Lab from a “sector weight” rating to an “overweight” rating and set a $135.00 target price for the company in a research report on Monday, June 15th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $110.65.

View Our Latest Stock Report on Rocket Lab

Key Stories Impacting Rocket Lab

Here are the key news stories impacting Rocket Lab this week:

Positive Sentiment: Strong Q2 growth: Revenue rose 62% year over year to approximately $234.1 million, while backlog increased 137% to $2.36 billion. Rocket Lab also narrowed its per-share loss compared with the prior-year quarter. Rocket Lab Q2 2026 financial results
Positive Sentiment: Above-consensus revenue outlook: Management guided for third-quarter revenue of $250 million to $265 million, above Wall Street expectations of roughly $236 million, signaling continued demand for launch and space systems. Rocket Lab launch capacity and AI demand
Positive Sentiment: New growth initiatives: Rocket Lab secured a dedicated Neutron launch for Kepler targeted for no earlier than 2028, unveiled the deployable GHOST launch system, and established Rocket Lab Germany to expand European satellite manufacturing and launch capabilities. Kepler selects Rocket Lab Neutron
Neutral Sentiment: CEO Peter Beck said the emergence of orbital data centers could create a significant new market for Rocket Lab’s launch and space infrastructure services, but the opportunity remains longer term and unproven. AI and orbital data centers
Negative Sentiment: Margin outlook disappointed investors: Rocket Lab’s projected third-quarter gross margin of 29% to 31% was reported below analysts’ expectation of about 37.6%, raising concerns that rapid expansion is pressuring profitability.
Negative Sentiment: Quarterly loss and valuation concerns: The company reported an adjusted loss of approximately $0.08 per share, and analysts and investors remain concerned that RKLB’s elevated valuation leaves limited room for execution mistakes. Rocket Lab valuation analysis
Negative Sentiment: Rocket Lab is also facing heightened competition and attention from SpaceX following its public-market debut, while reported insider activity showed substantial selling and no open-market purchases in the past six months.

About Rocket Lab

(Get Free Report)

Rocket Lab is an aerospace company that provides launch services, spacecraft, and space systems for commercial and government customers. The company’s primary launch vehicle is Electron, a small-lift orbital rocket designed to deploy small satellites and rideshare payloads to low Earth orbit. Rocket Lab also develops and manufactures the Rutherford engine, noted for its electric-pump-fed design and additive-manufactured components, which powers Electron and supports the company’s propulsion capabilities.