Rocket Lab's Largest Contract Yet: Is the Stock a Buy in 2026?

Rocket Lab's Explosive Growth and Strategic Moves

Rocket Lab has made significant strides in the first quarter, securing more launch deals than it did throughout the entire previous year. This includes its largest-ever launch contract, signaling a major shift in the company's trajectory. Despite ongoing financial losses, the company is on track to become profitable in the near future.

A Growing Revenue Stream

Rocket Lab's revenue has been steadily increasing over the years. Here's a breakdown of the company's financial performance:

• 2023: Revenue of $244.59 million, with a net loss of $182.57 million.
• 2024: Revenue jumped to $436.21 million, but the net loss increased slightly to $190.17 million.
• 2025: Revenue reached $601.79 million, with a net loss of $198.20 million.
• 2026 (through March 31): Revenue was $200.34 million, with a net loss of $45.02 million.

Despite these losses, Rocket Lab's stock has seen impressive growth, rising by 2,500% over the last three years. The company's stock price increased by 46.7% in 2023, 360.6% in 2024, and 173.9% in 2025.

Expanding Launch Capabilities

Rocket Lab operates two launch pads in New Zealand and one in Virginia. To date, the company has completed 87 successful launches, including eight this year. These missions have included deploying spacecraft for the Japan Aerospace Exploration Agency (JAXA) and supporting various commercial and national security projects.

The company has also collaborated with the U.S. Space Force, BlackSky Technology, and other commercial entities. Additionally, Rocket Lab's spacecraft are being used in NASA's Escapade mission to Mars, which launched aboard Blue Origin rockets in November.

Strong Backlog and Future Contracts

In the first quarter of 2026, Rocket Lab reported revenue of $200.3 million, a 63.5% increase from the previous year. The company now has a backlog of $2.2 billion, up 20% from the previous quarter. It signed 31 launch contracts during the quarter, surpassing the total number of contracts signed in all of 2025. Rocket Lab currently has over 70 launch contracts under its manifest.

These contracts include the largest launch contract in history, signed with a confidential customer for multiple Neutron and Electron missions. The Neutron rocket is designed for satellite deployment, cargo resupply, and human spaceflight, while the Electron rocket is a smaller vehicle for small satellites.

Strategic Acquisition of Motiv Space Systems

Rocket Lab recently acquired California-based Motiv Space Systems, a specialist in advanced space robotic systems used on NASA's Mars rover missions. This acquisition is expected to enhance Rocket Lab's capabilities in lunar and planetary exploration by bringing in-house the design and manufacturing of robotics technology needed for such missions.

Investor Expectations and Future Prospects

While Rocket Lab is currently unprofitable, it is showing signs of approaching profitability as it scales up its launch contracts and capabilities. Management is projecting second-quarter revenue between $225 million and $240 million, which would represent a 60% increase from the previous year. Analysts anticipate Rocket Lab's revenue to reach $853.5 million in 2026 and $1.25 billion in 2027, with the company expected to break even or come close to it next year.

Despite its current financial challenges, Rocket Lab remains an attractive growth stock, drawing attention from both companies and governments seeking reliable partners in the private sector. If it continues its growth trajectory, Rocket Lab could emerge as a key player in the space industry.

Should You Invest in Rocket Lab?

Before investing in Rocket Lab, consider that not all stocks grow at double-digit rates every year. However, Rocket Lab's expansion and strategic moves suggest a promising future. The company's recent achievements and strong backlog indicate potential for long-term growth.

Investors should also be aware of the risks associated with the space industry, including regulatory challenges, technological hurdles, and market volatility. While Rocket Lab shows promise, careful consideration of these factors is essential before making any investment decisions.