Why Rocket Lab Stock Is Down After Hours — and What Wall Street Expects Next

Rocket Lab (NASDAQ:RKLB) shares are down about 6% in after-hours trading Monday as shareholders weigh another quarter of strong growth against continued losses and expectations for lower margins ahead. With RKLB coming off a strong run from its late-July low, expectations were already running high before Monday’s report.

Against that high bar, second-quarter revenue reached a record $234.06 million, climbing 62% year-over-year and beating consensus estimates by $3.1 million. Rocket Lab reported a GAAP loss of $0.08 per share, while its net loss narrowed to $49.3 million from $66.4 million one year earlier. The company finished the quarter with a record backlog of $2.36 billion, while non-GAAP gross margin reached 41.5%, topping the 38% analysts had expected.

Looking ahead, management expects third-quarter revenue between $250 million and $265 million, well above the $235.9 million consensus estimate. However, profitability is expected to take a step back, with GAAP gross margin projected between 29% and 31%, compared with 36.1% in the second quarter. Non-GAAP gross margin is expected between 35% and 37%, down from 41.5%, while management forecasts an adjusted EBITDA loss between $17 million and $23 million.

Beyond the financial figures, Rocket Lab has spent 2026 expanding well beyond its roots as an Electron launch provider. In June, the company agreed to acquire Iridium Communications in an approximately $8 billion transaction, which would add satellite communications services to its growing portfolio. Rocket Lab has completed its Mynaric and Motiv acquisitions as well, adding technologies that complement its broader push into spacecraft and space systems.

Government contracts have provided another source of momentum this year. Last week, Rocket Lab announced a $397 million U.S. Space Force contract covering the development and launch of specialized Flatellite spacecraft aboard Neutron. The company now has more than 90 missions in its launch backlog, while Neutron remains one of the most important pieces of its longer-term growth plans. Rocket Lab said production of Neutron’s Stage 1 tank remains aligned with delivery to the launch pad during the fourth quarter.

Overall, analysts believe Rocket Lab shares can move higher from their current level. RKLB holds a Strong Buy consensus rating, with 13 Buys and 4 Holds assigned over the past three months. The average price target stands at $110.53, representing a 38% upside from Monday’s closing price. (See RKLB stock forecast)