Rocket Lab vs AST SpaceMobile Q1 Earnings Comparison
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 57 minutes ago
0mins
Should l Buy RKLB?
Source: Fool
- Rocket Lab's Strong Performance: Rocket Lab reported a 63.5% year-over-year revenue increase to $200 million in Q1, achieving a gross margin of 38.2%, although operating costs rose 40.4%, resulting in a loss of $0.07 per share, which is an improvement from last year's $0.12 loss, indicating competitive strength in the rapidly growing space market.
- Optimistic Future Guidance: Rocket Lab expects Q2 revenue to grow by 20% sequentially, with gross margins projected to decline to 33%-35%; analysts predict continued losses in the upcoming quarters, but a narrowing to $0.27 per share by 2026, reflecting a gradual path toward profitability.
- AST SpaceMobile's Disappointing Results: AST SpaceMobile reported a Q1 loss of $0.66 per share, significantly worse than the expected $0.21 loss, with revenue at only $14.7 million, missing the $37.5 million target, despite a 20-fold year-over-year growth, as operating costs surged 158%, increasing cash flow pressures.
- Cash Burn Concerns: AST SpaceMobile's cash burn reached $327.4 million in Q1, with an annual forecast of $1.8 billion; if this rate continues, it risks depleting much of its $3.5 billion cash reserves by year-end, posing significant financial challenges ahead.
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Analyst Views on RKLB
Wall Street analysts forecast RKLB stock price to fall
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 132.550
Low
63.00
Averages
86.89
High
120.00
Current: 132.550
Low
63.00
Averages
86.89
High
120.00
About RKLB
Rocket Lab Corporation is an end-to-end space company. The Company designs and manufactures small and medium-class rockets, spacecraft and spacecraft components, and related software and services to support the space economy. The Company delivers reliable launch services, satellite manufacture, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions that make it easier to access space. Its Launch Services segment provides launch and launch-related services to customers on a dedicated mission or ride-share basis. Its Space Systems segment comprises the design and manufacture of spacecraft components and spacecraft program management services, space data applications, and mission operations. Its space systems solutions are the building blocks for spacecraft, which include composite structures, reaction wheels, star trackers, solar solutions, radios, separation systems, and command and control spacecraft software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rocket Lab Shares Surge 12% Following Strong Earnings and Analyst Upgrades
- Strong Performance: Rocket Lab reported first-quarter revenue of $200.3 million, a 63% year-over-year increase that exceeded Wall Street expectations, highlighting the company's robust growth potential in the aerospace and defense sectors.
- Analyst Target Upgrades: Analysts at Cantor Fitzgerald and Cowen raised their price targets to $96 and $120, respectively, reflecting confidence in Rocket Lab's strong demand and successful launch record, which further propelled the stock price upward.
- Record Backlog: The company reported a backlog of $2.2 billion, surpassing all launch bookings for 2025, indicating strong future revenue sustainability and robust market demand.
- Acquisition Strategy: Rocket Lab announced the acquisition of Motiv Space Systems to enhance its space robotics capabilities, a strategic move that will further strengthen the company's technological prowess and market competitiveness.
See More
Pentagon Accelerates Hypersonic Missile Development, Boosting Rocket Lab
- Contract Expansion: Rocket Lab has secured a $190 million contract under the Pentagon's HASTE program to conduct 20 hypersonic test flights over the next four years, significantly enhancing its market position in the defense sector.
- Collaboration with Anduril: Rocket Lab will partner with defense tech unicorn Anduril Industries, which is paying $30 million for three hypersonic launches planned within the next year, further diversifying Rocket Lab's revenue streams and strengthening its technical capabilities.
- Revenue Diversification: HASTE contracts now account for nearly one-third of Rocket Lab's contracted backlog, potentially adding almost 5% to annual revenue, which not only helps diversify income sources but also provides stability to its stock price, especially after a significant rise over the past year.
- New Rocket Development: While Rocket Lab is developing the new medium-lift Neutron rocket with a capacity of 15 tons to low Earth orbit, the substantial revenue from HASTE contracts supports the continued use of the existing Electron rocket, ensuring competitive advantage and technological strength in the market.
See More
Rocket Lab vs AST SpaceMobile Q1 Earnings Comparison
- Rocket Lab's Strong Performance: Rocket Lab reported a 63.5% year-over-year revenue increase to $200 million in Q1, achieving a gross margin of 38.2%, although operating costs rose 40.4%, resulting in a loss of $0.07 per share, which is an improvement from last year's $0.12 loss, indicating competitive strength in the rapidly growing space market.
- Optimistic Future Guidance: Rocket Lab expects Q2 revenue to grow by 20% sequentially, with gross margins projected to decline to 33%-35%; analysts predict continued losses in the upcoming quarters, but a narrowing to $0.27 per share by 2026, reflecting a gradual path toward profitability.
- AST SpaceMobile's Disappointing Results: AST SpaceMobile reported a Q1 loss of $0.66 per share, significantly worse than the expected $0.21 loss, with revenue at only $14.7 million, missing the $37.5 million target, despite a 20-fold year-over-year growth, as operating costs surged 158%, increasing cash flow pressures.
- Cash Burn Concerns: AST SpaceMobile's cash burn reached $327.4 million in Q1, with an annual forecast of $1.8 billion; if this rate continues, it risks depleting much of its $3.5 billion cash reserves by year-end, posing significant financial challenges ahead.
See More
U.S. Defense Budget Soars, Benefiting Defense Stocks
- Defense Budget Surge: The U.S. defense budget surpassed $1 trillion in 2023, with projections of reaching $1.5 trillion in 2024, reflecting a strong focus on modernization and military rebuilding, which is expected to drive up related defense stocks.
- RTX's Market Position: As one of the world's largest aerospace and defense companies, RTX is well-positioned to benefit from the $24.4 billion 'Golden Dome' initiative by providing layered defense solutions, thereby solidifying its market position amid rising defense budgets.
- Honeywell's Spin-off Strategy: Honeywell is undergoing a massive transformation by spinning off its aerospace segment into an independent company, which is expected to unlock value for investors, especially with a $500 million agreement with the U.S. Department of Defense to boost production of critical components.
- Rocket Lab's Contract Wins: Rocket Lab secured an $816 million prime contract to design and manufacture 18 missile-defense satellites, showcasing its strong growth potential in the defense sector, while reporting $200 million in revenue for Q1, exceeding market expectations and enhancing its market appeal.
See More
Rocket Lab's Q1 2026 Results Exceed Expectations
- Strong Earnings Report: Rocket Lab reported Q1 2026 revenue of $200.4 million, exceeding analyst expectations of $189.7 million and setting a new quarterly sales record, indicating robust market demand and growth potential.
- Stock Surge: Following the earnings announcement, Rocket Lab's stock soared to an all-time high of $133.18 yesterday, reflecting a 25.7% increase from last Friday's close, showcasing investor optimism about the company's future.
- Analyst Rating Upgrades: Deutsche Bank raised its price target for Rocket Lab from $73 to $120, a 64% increase, while Clear Street initiated coverage with a buy rating and a $150 target, further boosting market confidence.
- Positive Future Outlook: Rocket Lab forecasts Q2 2026 revenue between $225 million and $240 million with a gross margin of 33% to 35%, indicating a strong growth trajectory in the expanding space economy.
See More
Rocket Lab Partners with RTX for $3.2 Billion Missile Defense Contract
- Contract Expansion: President Trump's $151 billion initiative has been expanded with a $3.2 billion umbrella contract aimed at developing space-based interceptor missiles to shoot down hostile threats, highlighting the strategic importance of U.S. defense initiatives.
- Competitive Landscape: Major U.S. defense players like General Dynamics, Lockheed Martin, Northrop Grumman, and RTX will compete for this contract, indicating a highly competitive market where companies must enhance their technological capabilities to secure contracts.
- Opportunity for Rocket Lab: By partnering with RTX for the SBI contract bid, Rocket Lab stands to gain significantly, as the potential contract value of $3.2 billion could represent up to 4.7 times its trailing 12-month sales of $680 million, which would greatly enhance its market position if successful.
- Strategic Collaboration: The partnership between RTX and Rocket Lab allows RTX to leverage Rocket Lab's Electron rocket capabilities, compensating for its lack of a dedicated space rocket platform, thereby strengthening its competitive edge in missile defense and indicating a mutually beneficial relationship.
See More
Rocket Lab Shares Surge 12% Following Strong Earnings and Analyst Upgrades
- Strong Performance: Rocket Lab reported first-quarter revenue of $200.3 million, a 63% year-over-year increase that exceeded Wall Street expectations, highlighting the company's robust growth potential in the aerospace and defense sectors.
- Analyst Target Upgrades: Analysts at Cantor Fitzgerald and Cowen raised their price targets to $96 and $120, respectively, reflecting confidence in Rocket Lab's strong demand and successful launch record, which further propelled the stock price upward.
- Record Backlog: The company reported a backlog of $2.2 billion, surpassing all launch bookings for 2025, indicating strong future revenue sustainability and robust market demand.
- Acquisition Strategy: Rocket Lab announced the acquisition of Motiv Space Systems to enhance its space robotics capabilities, a strategic move that will further strengthen the company's technological prowess and market competitiveness.
See More
Pentagon Accelerates Hypersonic Missile Development, Boosting Rocket Lab
- Contract Expansion: Rocket Lab has secured a $190 million contract under the Pentagon's HASTE program to conduct 20 hypersonic test flights over the next four years, significantly enhancing its market position in the defense sector.
- Collaboration with Anduril: Rocket Lab will partner with defense tech unicorn Anduril Industries, which is paying $30 million for three hypersonic launches planned within the next year, further diversifying Rocket Lab's revenue streams and strengthening its technical capabilities.
- Revenue Diversification: HASTE contracts now account for nearly one-third of Rocket Lab's contracted backlog, potentially adding almost 5% to annual revenue, which not only helps diversify income sources but also provides stability to its stock price, especially after a significant rise over the past year.
- New Rocket Development: While Rocket Lab is developing the new medium-lift Neutron rocket with a capacity of 15 tons to low Earth orbit, the substantial revenue from HASTE contracts supports the continued use of the existing Electron rocket, ensuring competitive advantage and technological strength in the market.
See More
Rocket Lab vs AST SpaceMobile Q1 Earnings Comparison
- Rocket Lab's Strong Performance: Rocket Lab reported a 63.5% year-over-year revenue increase to $200 million in Q1, achieving a gross margin of 38.2%, although operating costs rose 40.4%, resulting in a loss of $0.07 per share, which is an improvement from last year's $0.12 loss, indicating competitive strength in the rapidly growing space market.
- Optimistic Future Guidance: Rocket Lab expects Q2 revenue to grow by 20% sequentially, with gross margins projected to decline to 33%-35%; analysts predict continued losses in the upcoming quarters, but a narrowing to $0.27 per share by 2026, reflecting a gradual path toward profitability.
- AST SpaceMobile's Disappointing Results: AST SpaceMobile reported a Q1 loss of $0.66 per share, significantly worse than the expected $0.21 loss, with revenue at only $14.7 million, missing the $37.5 million target, despite a 20-fold year-over-year growth, as operating costs surged 158%, increasing cash flow pressures.
- Cash Burn Concerns: AST SpaceMobile's cash burn reached $327.4 million in Q1, with an annual forecast of $1.8 billion; if this rate continues, it risks depleting much of its $3.5 billion cash reserves by year-end, posing significant financial challenges ahead.
See More
U.S. Defense Budget Soars, Benefiting Defense Stocks
- Defense Budget Surge: The U.S. defense budget surpassed $1 trillion in 2023, with projections of reaching $1.5 trillion in 2024, reflecting a strong focus on modernization and military rebuilding, which is expected to drive up related defense stocks.
- RTX's Market Position: As one of the world's largest aerospace and defense companies, RTX is well-positioned to benefit from the $24.4 billion 'Golden Dome' initiative by providing layered defense solutions, thereby solidifying its market position amid rising defense budgets.
- Honeywell's Spin-off Strategy: Honeywell is undergoing a massive transformation by spinning off its aerospace segment into an independent company, which is expected to unlock value for investors, especially with a $500 million agreement with the U.S. Department of Defense to boost production of critical components.
- Rocket Lab's Contract Wins: Rocket Lab secured an $816 million prime contract to design and manufacture 18 missile-defense satellites, showcasing its strong growth potential in the defense sector, while reporting $200 million in revenue for Q1, exceeding market expectations and enhancing its market appeal.
See More
Rocket Lab's Q1 2026 Results Exceed Expectations
- Strong Earnings Report: Rocket Lab reported Q1 2026 revenue of $200.4 million, exceeding analyst expectations of $189.7 million and setting a new quarterly sales record, indicating robust market demand and growth potential.
- Stock Surge: Following the earnings announcement, Rocket Lab's stock soared to an all-time high of $133.18 yesterday, reflecting a 25.7% increase from last Friday's close, showcasing investor optimism about the company's future.
- Analyst Rating Upgrades: Deutsche Bank raised its price target for Rocket Lab from $73 to $120, a 64% increase, while Clear Street initiated coverage with a buy rating and a $150 target, further boosting market confidence.
- Positive Future Outlook: Rocket Lab forecasts Q2 2026 revenue between $225 million and $240 million with a gross margin of 33% to 35%, indicating a strong growth trajectory in the expanding space economy.
See More
Rocket Lab Partners with RTX for $3.2 Billion Missile Defense Contract
- Contract Expansion: President Trump's $151 billion initiative has been expanded with a $3.2 billion umbrella contract aimed at developing space-based interceptor missiles to shoot down hostile threats, highlighting the strategic importance of U.S. defense initiatives.
- Competitive Landscape: Major U.S. defense players like General Dynamics, Lockheed Martin, Northrop Grumman, and RTX will compete for this contract, indicating a highly competitive market where companies must enhance their technological capabilities to secure contracts.
- Opportunity for Rocket Lab: By partnering with RTX for the SBI contract bid, Rocket Lab stands to gain significantly, as the potential contract value of $3.2 billion could represent up to 4.7 times its trailing 12-month sales of $680 million, which would greatly enhance its market position if successful.
- Strategic Collaboration: The partnership between RTX and Rocket Lab allows RTX to leverage Rocket Lab's Electron rocket capabilities, compensating for its lack of a dedicated space rocket platform, thereby strengthening its competitive edge in missile defense and indicating a mutually beneficial relationship.
See More
