Rocket Lab USA Inc. shares climbed Tuesday after the space launch and services provider reported third-quarter results that beat Wall Street expectations and issued a stronger-than-expected outlook for the current quarter.
The results highlighted growing demand for the company’s launch and space systems businesses, even as profitability remains a challenge.
The stock rose nearly 9.7% to its intraday high of $56.96.
Record revenue and narrower losses
Rocket Lab reported a third-quarter loss of $0.03 per share on revenue of $155 million, topping analyst estimates for a $0.10 per share loss on revenue of $151.8 million, according to FactSet.
The performance marked a significant improvement from the $0.10 loss on $104.8 million in revenue recorded a year earlier.
The company’s latest results represented its highest quarterly revenue on record and came in at the top end of management’s guidance range of $145 million to $155 million.
Looking ahead, Rocket Lab expects fourth-quarter revenue between $170 million and $180 million, above the consensus estimate of about $172 million.
However, management guided for a fourth-quarter adjusted EBITDA loss between $23 million and $29 million, wider than the $13 million loss projected by analysts.
Despite the continued losses, investors appeared encouraged by the company’s accelerating revenue growth and expanding contract pipeline.
Analysts raise price targets amid strong launch momentum
Following the earnings report, several Wall Street firms raised their price targets for Rocket Lab shares.
Cantor Fitzgerald analyst Andres Sheppard reiterated a Buy rating and lifted his target to $72 from $54, citing the company’s record results and reaffirmed goal of more than 20 Electron launches in 2025.
Roth Capital and Stifel also maintained Buy ratings, boosting their price targets to $75 from $60 and $65, respectively.
“This past quarter we’ve once again delivered record revenue of $155 million… and a new annual launch record is just days away,” said CEO Peter Beck.
Rocket Lab has launched 14 rockets so far in 2025, matching its total for 2024.
The company signed contracts for 17 launches in the third quarter, pushing its total launch backlog to 49.
Beck said the firm’s growth has been supported by strong progress in major space systems programs and strategic acquisitions aligned with next-generation defense initiatives such as the Golden Dome and Space Development Agency constellations.
Expanding in defense and commercial space markets
Rocket Lab continues to diversify its business beyond launch services through mergers and acquisitions.
During the third quarter, the company completed its acquisition of Geost, a manufacturer of electro-optical and infrared sensors used in defense applications.
The company’s expanding role in commercial and defense space operations comes as US government agencies, including NASA and the Department of Defense, increasingly turn to private-sector providers for satellite launches and space infrastructure.
Rocket Lab shares have more than doubled this year amid optimism about the future of commercial spaceflight.
However, elevated valuations remain a concern.
Wall Street estimates 2027 EBITDA of about $172 million, down from $225 million at the start of the year, implying the stock trades at roughly 170 times those forward estimates.
Despite those lofty multiples, analysts remain largely bullish, citing the company’s expanding contract backlog, record revenue performance, and strong positioning in the rapidly growing space and defense markets.
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