Rocket Lab (NASDAQ:RKLB) investors will be heading off to the weekend in a very good mood indeed. Shares are surging to new highs, up by 26% in Friday’s session following the release of the space company’s Q1 results.
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It was a blowout quarter all around. Wall Street had been expecting about $190 million in first-quarter revenue and roughly $73 million in gross profit, but the company exceeded those forecasts with revenue hitting $200.3 million and gross profit reaching $76.5 million. In 1Q25, Rocket Lab recorded $122.6 million in sales and gross profit of $35.2 million. Its loss narrowed to $45.0 million, or EPS of ($0.07), improving from a loss of $60.6 million, or ($0.12) in the same period a year ago. The result also came in better than the Street’s forecast, which called for a loss of ($0.08) per share.
Looking to Q2, the company expects revenue in the range of $225 million to $240 million, above analyst expectations of $205 million.
Rocket Lab saw continued strength in both its Launch and Space Systems businesses. In Launch, Rocket Lab completed one fewer mission during the quarter, but results were supported by higher ASPs, along with revenue recognition tied to HASTE missions.
Meanwhile, the Space Systems segment benefited from the SDA beta program moving into full-scale production and the T3TRK program also started adding to results.
Neutron, the company’s larger launch vehicle designed to expand its addressable launch market, is still scheduled to make its debut in late 2026.
Overall, the first quarter was an especially active period, with the company securing 31 combined Electron and HASTE missions, the highest quarterly total on record, along with 5 Neutron launch agreements. Altogether, those contract wins exceeded the company’s total contract signings for all of 2025.
Rocket Lab also announced several new business developments. Along with RTX, the company was chosen to demonstrate interceptor capabilities for the U.S. Space Force. Additionally, Anduril Industries will rely on Rocket Lab for hypersonic weapons test flights, while the firm is also acquiring robotics company Motiv Space Systems.
Assessing the print, Stifel’s Erik Rasmussen, an analyst ranked among the top 2% on Wall Street, is highly impressed with the company’s progress. “We believe fundamentals remain strong and view the Q1 results and Q2 guidance as reinforcing our long-term thesis,” the 5-star analyst said. “Despite the company’s high valuation and ongoing cash burn, there is relatively little direct competition for Rocket Lab, and see the high barriers to entry as justification for a premium multiple for long-term investors.”
Based on a large and expanding backlog of about $2.2 billion, expectations for a higher launch cadence in 2026, rising Electron ASPs, and an “eventual successful” Neutron test flight, alongside ongoing growth in the Space Systems business, Rasmussen reiterated a Buy rating on the shares.
The rating comes with a new price target of $110 (raised from $105), implying the stock will gain another 11% over the next year. (To watch Rasmussen’s track record, click here)
9 other analysts join Rasmussen in the bull camp, while 3 Holds can’t detract from a Strong Buy consensus view. However, the $94 average price target now sits 5% below the current share price. With this in mind, watch out for additional price target hikes or rating downgrades shortly. (See RKLB stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.