Rocket Lab Secures Defense Contracts, But Analysts Remain Cautious on Stock Upside
Rocket Lab (RKLB) has continued to expand its defense and government contracts in 2026 with the latest addition of a $981 million U.S. Space Force NITE-STAR program contract. This follows other major wins, including a $397 million SB-AMTI deal and a $266 million suborbital launch agreement earlier this year. These contracts have pushed Rocket Lab’s defense backlog to a record $2.4 billion by mid-August 2026. Despite these developments, institutional investors remain cautious about significant upside for RKLB stock. The key debate is whether the market has already priced in much of Rocket Lab's anticipated success from its growing contract pipeline. While the company reported strong Q2 fiscal results with $234 million in revenue and a 41.5% non-GAAP gross margin, analysts are not increasing their bullish stance due to uncertainty about future task order execution. Rocket Lab’s stock has underperformed this year compared to its previous outperformance against the S&P 500 ($SPX). RKLB is down 6% YTD in 2026 while the broader market gained 12%. This reflects a shift toward profitable defensive stocks and away from unprofitable small-cap growth names.
Tickers: $RKLB
Topics: Defense Contracts NITE-STAR Program Rocket Lab Space Force