Rocket Lab USA has jolted the market with an exceptional quarterly report, triggering a significant after-hours rally for its stock. Following weeks of downward pressure, the company’s impressive financial results propelled its shares upward by more than 7%. The outstanding figures have captured Wall Street’s attention, raising questions about whether this momentum can fully alleviate recent investor concerns regarding delays in the Neutron rocket program or if this represents merely a temporary rebound amid ongoing market volatility.
Wall Street Analysts Revise Targets Upward
The financial community responded swiftly to Rocket Lab’s strong showing. Several prominent financial institutions significantly raised their price objectives for the company:
- Stifel increased its target to $75 from $65
- Needham lifted its projection to $63 from $55
- Cantor Fitzgerald boosted its target substantially to $72 from $54
All three firms reaffirmed their positive investment ratings. This coordinated upward revision signals growing confidence in the company’s growth trajectory, with the prevailing analyst consensus firmly positioned in “Buy” territory.
Record-Breaking Financial Metrics
The third quarter of 2025 proved transformative for Rocket Lab. The company posted record revenue of $155 million, surpassing analyst expectations and representing a substantial 48% increase compared to the same period last year. Even more notably, the loss per share came in at just $0.03, dramatically better than the projected $0.10 loss—a improvement that resonated strongly with market participants.
Should investors sell immediately? Or is it worth buying Rocket Lab USA?
This performance was supported by robust demand across both business segments. The launch services division and space systems unit each demonstrated strength, with 17 new contracts for the Electron launch vehicle underscoring a healthy business pipeline. With a total backlog of $1.1 billion and record gross margins reaching 37%, Rocket Lab has established a firm foundation for continued expansion.
Neutron Delay Remains a Consideration
Despite the powerful quarterly results, one uncertainty persists: the postponed inaugural flight of the Neutron rocket, now scheduled for the first quarter of 2026. This development had previously weighed on the stock, contributing to a decline of over 20% within a single month before the earnings release.
Company leadership has attributed the schedule adjustment to additional testing requirements, emphasizing their commitment to ensuring a successful debut for the next-generation launch vehicle. For investors, the central question remains whether the current operational strength of the core business outweighs the timeline extension for this future project. The impressive margin recovery and narrowing operational losses suggest that Rocket Lab possesses the capacity for profitable growth even before Neutron becomes operational.
Looking ahead, management has provided fourth-quarter revenue guidance between $170 and $180 million, exceeding consensus estimates. This confident outlook positions the company for continued momentum in the coming weeks as markets assess whether this earnings report marks a definitive turning point.
Ad
Rocket Lab USA Stock: Buy or Sell?! New Rocket Lab USA Analysis from November 13 delivers the answer:
The latest Rocket Lab USA figures speak for themselves: Urgent action needed for Rocket Lab USA investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 13.
Rocket Lab USA: Buy or sell? Read more here...
