Rocket Lab (NASDAQ: RKLB) shares fell to $55.25 after the company pushed its Neutron rocket’s first launch into 2027, a 6.6% decline from recent levels.
The stock had dropped as much as 16% earlier in the session, extending what had already become a six-session losing streak for the company.
Chief Executive Peter Beck cited voids in the carbon-composite forward propellant dome as the technical cause, with replacement and testing now running through Q1 2027.
Despite the Neutron setback, Rocket Lab reported record quarterly revenue of $234.07 million, up 62% year over year, marking four consecutive quarters of beating revenue estimates.
Non-GAAP gross margin expanded to 41.5% from 36.9%, and the adjusted EBITDA loss narrowed significantly to $8.8 million from $27.6 million in the prior year period.
The company’s backlog surged 137% to $2.36 billion, driven by an $816 million Space Development Agency award and a new role connected to the Golden Dome program.
Management expressed strong commercial confidence, saying it has had “absolutely zero issues” selling full-price Neutron launches before a single test flight has occurred.
Wall Street analysts remain broadly bullish but have trimmed their targets, with Cantor maintaining an Overweight rating and a $122 price target following the announcement.
Clear Street cut its target to $105 from $129, noting the delay pushes growth and profitability out by roughly three quarters, while TD Cowen reduced its target to $90 from $120.
The company’s chief financial officer tied the cash-flow turning point directly to Neutron’s first successful launch, followed by 18 to 24 months of fleet investment before standalone cash-flow positivity is achievable.
Free cash flow was -$321.8 million in 2025, and the company raised $1.53 billion through stock sales in the first half of 2026 to fund ongoing development and operations.
Space Systems revenue reached $189.5 million last quarter, demonstrating that Rocket Lab’s core business continues expanding even while Neutron remains grounded by technical challenges.
The selloff appears company-specific rather than sector-wide, as AST SpaceMobile (NASDAQ: ASTS) jumped 5.5% during the same trading session, signaling broader space sector sentiment remained intact.
The pending Iridium Communications (NASDAQ: IRDM) deal, expected to close by mid-2027, adds further integration risk at an already complicated moment for the company’s near-term financial picture.
At $55.25, RKLB trades well below the analyst consensus target of $105.05, implying roughly 90% upside according to the average of 20 analyst ratings, which include four Strong Buy, twelve Buy, and four Hold recommendations.
The stock is down 20.69% year-to-date, dramatically underperforming the S&P 500’s 13.13% gain, and over the past week alone lost 18.88% while the broader index slipped just 0.27%.
Shares are also trading well below the 200-day moving average of $81.49, a technical signal that often concerns momentum-focused investors evaluating near-term entry points.
Beck described a fully fueled stage sitting on the pad as the milestone that “gets your adrenaline running,” a benchmark investors will closely watch heading into the next two earnings reports.
Third-quarter revenue guidance of $250 million to $265 million represents the next tangible test of whether Rocket Lab’s core business can continue carrying the company while Neutron matures.
The critical question for investors now is whether the dome fix holds to its Q1 2027 schedule or whether Neutron’s timeline continues its pattern of slipping further down the calendar.
