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Rocket Lab shares tumble 57% from June high as Space Force work boosts outlook
Rocket Lab reported 64% higher sales to $200 million in Q1 2026 and a $2.2 billion backlog, while remaining unprofitable with a $45 million net loss.
Rocket Lab shares have fallen 57% from their all-time high of $151 set in June, even as analysts maintain a bullish average price target of $111.31, implying about 49% upside, according to coverage on Yahoo Finance.
The company’s outlook is supported by a sharp lift in recent operating metrics, including 31 launch contracts in Q1 2026, record for the quarter, and sales rising 64% to $200 million. Rocket Lab’s backlog of launch contracts totals $2.2 billion, up 108% versus the year-ago quarter.
Yahoo Finance also highlighted that Rocket Lab’s adjusted EBITDA loss was $11.8 million in the quarter, better than an analysts’ consensus estimate of a $26 million loss. At least seven analysts increased price targets after the first-quarter results.
Further momentum comes from U.S. Space Force awards, including a $397 million contract for advanced flat-satellite development, launch, and operations, and an additional $266 million Space Force deal covering 12 suborbital launches and up to six additional launches, with the first scheduled before year-end. Despite these wins, the report notes Rocket Lab is not yet profitable, posting a $45 million net loss in the first quarter and trading at a price-to-sales ratio of 53, well above the tech sector average.