Rocket Lab (RKLB) Shares Jump 34% as Q1 Revenue Exceeds Expectations

TLDR

• Rocket Lab stock reached a new 52-week high of $105.62 after TD Cowen increased its price target from $90 to $120, maintaining a Buy rating
• Q1 2026 revenue set a record at $200.3 million, rising approximately 63% year over year, surpassing Wall Street estimates
• Q2 guidance was raised to $225–$240 million, indicating about 16% sequential growth
• Rocket Lab’s backlog hit a record $2.2 billion, up 108%, with 42% from launch services and 58% from space systems
• The company secured a $30 million HASTE hypersonic contract with Anduril and acquired space robotics firm Motive Space Systems

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(SeaPRwire) –   Rocket Lab (RKLB) stock jumped 34% on Friday, closing at $105.55 and reaching a new 52-week high of $105.62 — up from a previous close of $78.58. Trading volume reached 76 million shares, roughly 247% above its three-month average.

Rocket Lab USA, Inc., RKLB

The surge was driven by an exceptional Q1 2026 earnings report. Revenue reached a record $200.3 million, marking a 63% increase year over year, and exceeded Wall Street expectations. The EPS loss narrowed to $0.07, also outperforming analysts’ forecasts.

In response, TD Cowen quickly adjusted its outlook. The firm raised its price target for RKLB from $90 to $120 and kept its Buy rating, further boosting the stock’s momentum.

The strong performance wasn’t limited to top-line results. Rocket Lab’s backlog expanded 108% to a record $2.2 billion. This consists of 42% from launch operations and 58% from space systems, reflecting growing diversification in revenue sources.

Management also revised its Q2 guidance upward to between $225 million and $240 million. This would represent another record quarter and suggests about 16% sequential growth.

New Contracts and Defense Partnerships

Beyond quarterly results, Rocket Lab announced several significant deals supporting its outlook.

The company signed what it described as the largest launch contract in its history, covering multiple Neutron and Electron missions for an unnamed customer. The agreement adds substantial revenue visibility to an already expanding backlog.

Rocket Lab also won a $30 million HASTE hypersonic launch contract with Anduril Industries. This partnership connects two prominent players in the defense technology sector.

A separate demonstration contract with the U.S. Space Force and Raytheon was also unveiled, further confirming demand for Rocket Lab’s launch capabilities in defense applications.

Rocket Lab acquired space robotics company Motive Space Systems during the quarter, positioning itself potentially for greater involvement in future exploration missions.

Analyst Reactions

Analysts are generally favorable but not unanimous. Roth MKM raised its target from $90 to $100 with a Buy rating ahead of the earnings release. Cantor Fitzgerald maintained its Overweight rating with an $85 target back in March.

Conversely, Wells Fargo initiated coverage in April with an Equal Weight rating and a $60 target — significantly below the current stock price. KeyCorp downgraded RKLB to Sector Weight in January.

According to MarketBeat, the consensus rating is “Moderate Buy,” with an average target price of $90. That figure now lags well behind the stock’s current level following Friday’s rally.

Insider selling has been notable. CFO Adam Spice sold approximately 62,744 shares at $69.59 in March. Insider Frank Klein sold 36,768 shares at $71.95 around the same period. Combined insider sales over the past 90 days amounted to about 233,449 shares valued at roughly $16.5 million.

Institutional ownership stands at 71.78%. The stock’s 50-day moving average is $72.88 and its 200-day average is $68.50, both currently trading well below present levels.

Rocket Lab’s market capitalization is approximately $61 billion following Friday’s price movement.