Rocket Lab (RKLB) shares are slipping in Wednesday's premarket, but the company just locked in a fresh deal with the U.S. Space Force that could give its long-term story a serious boost.
On Tuesday, the space infrastructure company was selected for a $12 million contract to support the Space Force's space data network consortium. The goal? Building a secure, high-speed global satellite communications network for military operations. This isn't just a one-off project; it's part of a broader push to modernize how the military communicates across air, land, sea, and space.
The news comes as the broader market shows little movement, with S&P 500 futures hovering near flat. But for Rocket Lab, this contract is a meaningful step in its growing relationship with the Pentagon.
Wins U.S. Space Force Data Network Contract
The initiative is aimed at establishing a secure, high-speed global satellite communications network for military operations. Rocket Lab was competitively selected for two delivery orders under the SDN-B program, which focuses on demonstrating interoperability of secure optical communications in space. That's a fancy way of saying they're working on laser-based communication tech that's harder to jam or intercept than traditional radio waves.
The SDN Consortium, overseen by the U.S. Space Force's Space Systems Command, brings together leading industry players to develop and deploy a resilient satellite communications architecture. The network is intended to provide secure, real-time global connectivity to support U.S. military operations across all domains. The SDN-B program is a key part of the Space Force's broader Space Data Network initiative, which aims to give the Joint Force high-capacity, low-latency, and resilient data transport capabilities. By enabling continuous, secure connectivity, the program is expected to strengthen mission-critical communications for warfighters worldwide.
Onboarded To The U.S. Space Force's NITE-STAR Program
This isn't the only recent win for Rocket Lab. On Monday, the company announced it had been onboarded to the U.S. Space Force's NITE-STAR program, a $981 million contract vehicle supporting space test and training infrastructure. The program, also managed by Space Systems Command, is designed to help train space operators for contested scenarios and boost the Space Force's readiness.
As an awardee, Rocket Lab can now compete for individual task orders under the program, spanning satellite development, space software, ground systems deployment, and sustainment of operational systems. That's a wide net, and it gives Rocket Lab a foot in the door for a range of future military space projects.
Rocket Lab Earnings Preview And Analyst Price Targets
Looking ahead, Rocket Lab is slated to provide its next financial update on November 9, 2026 (estimated). Here's what the Street is expecting:
- EPS Estimate: Loss of 8 cents (up from a loss of 3 cents)
- Revenue Estimate: $253.80 million (up from $155.05 million)
That revenue jump is notable, reflecting the company's expanding launch and space systems business. The wider loss per share, though, suggests they're investing heavily in growth.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $107.71. Recent analyst moves include:
- Citizens: Market Outperform (maintains target at $130.00) (August 11)
- Cantor Fitzgerald: Overweight (raises target to $122.00) (August 11)
- KGI Securities: Upgraded to Outperform (target $107.00) (July 27)
These targets are well above the current price, suggesting analysts see upside despite the recent dip.
Top ETFs Holding Rocket Lab (RKLB)
For ETF investors, Rocket Lab is a notable holding in several space and defense funds. Here are the top ones:
- Invesco Aerospace & Defense ETF (PPA): 3.19% weight
- ARK Autonomous Technology & Robotics ETF (ARKQ): 3.41% weight
- Defiance Space and Connective Tech ETF (UFOX): 4.04% weight
Significance: Because RKLB carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. That's a double-edged sword: it can amplify moves in either direction.
RKLB Price Action: Rocket Lab shares were down 3.68% at $76.25 during premarket trading on Wednesday, according to market data.
So, what's the takeaway? Rocket Lab is steadily embedding itself into the U.S. military's space infrastructure, which could provide a steady stream of contracts in the years ahead. The stock's premarket dip might just be a blip, but the long-term trajectory looks promising.
