Rocket Lab (RKLB) Stock Surges 34% as Q1 Revenue Smashes Expectations

TLDR

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

Rocket Lab (RKLB) stock surged 34% on Friday, closing at $105.55 and hitting a new 52-week high of $105.62 — up from a prior close of $78.58. Volume hit 76 million, roughly 247% above its three-month average.

Rocket Lab USA, Inc., RKLB

The catalyst was a blowout Q1 2026 earnings report. Revenue came in at a record $200.3 million, a 63% jump year over year, and beat Wall Street’s expectations. EPS loss narrowed to $0.07, which also came in better than analysts had forecast.

TD Cowen moved quickly in response. The firm raised its price target on RKLB from $90 to $120 and maintained its Buy rating, adding fuel to the already strong session.

The move wasn’t just about the headline numbers. Rocket Lab’s backlog grew 108% to a record $2.2 billion. That’s split between launch operations at 42% and space systems at 58%, showing the company’s revenue base is becoming more diversified.

Management also raised its Q2 guidance to between $225 million and $240 million. That would mark another record quarter and reflects roughly 16% sequential growth.

New Contracts and Defense Deals

Beyond the quarterly figures, Rocket Lab had several deal announcements to back up its outlook.

The company signed what it called the largest launch contract in its history, covering multiple Neutron and Electron missions for an undisclosed customer. The deal adds meaningful revenue visibility to an already growing backlog.

Rocket Lab also won a $30 million HASTE hypersonic launch contract with Anduril Industries. That partnership links two of the more watched names in defense tech right now.

A separate Space Force demonstration deal with Raytheon was also announced, further reinforcing demand for Rocket Lab’s launch capabilities on the defense side.

Rocket Lab acquired space robotics firm Motive Space Systems during the quarter, a move that could open the door to a larger role in future exploration missions.

Analyst Reactions

The analyst community is broadly positive but not uniformly so. Roth MKm raised its target from $90 to $100 with a Buy rating ahead of the results. Cantor Fitzgerald held its Overweight rating with an $85 target back in March.

On the other hand, Wells Fargo initiated coverage in April with an Equal Weight rating and a $60 target — well below where the stock now trades. KeyCorp downgraded RKLB to Sector Weight in January.

The consensus, per MarketBeat, sits at “Moderate Buy” with an average target price of $90. That average now trails the stock’s current price by a wide margin following Friday’s move.

Insider activity has been on the selling side. CFO Adam Spice sold around 62,744 shares at $69.59 in March. Insider Frank Klein sold 36,768 shares at $71.95 around the same time. Combined insider sales over the last 90 days totaled roughly 233,449 shares worth about $16.5 million.

Institutional ownership stands at 71.78%. The stock’s 50-day moving average sits at $72.88 and its 200-day average at $68.50, both now well below current levels.

Rocket Lab’s market cap sits at approximately $61 billion following Friday’s move.

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