Rocket Lab Corporation

Q2 FY26Aerospace and Defense

Rocket Lab Corporation Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹148

Market cap₹85.7K Cr

P/E-12,994.6

Updated29 May 2026

Read5 min read

What the Q2 FY26 call signalled

3 of 4 strong

RevenueRank 2

MarginRank 3

CapexYes

Order bookYes

Not discussed on this call: fundraise.

The short version

- Q2 2026 revenue is expected between $225 million and $240 million, reflecting 16% quarter-over-quarter growth. - Longer-term, strong top-line growth is anticipated, supported by scale-up of satellite platforms and Neutron launch vehicle. - Electron and HASTE launch frequency is targeted at about 24 launches per year, with HASTE potentially reaching ~20-25% of total launches. - Space Systems revenue is expected to grow with increasing mix contribution, alongside Electron launches, but no dramatic near-term shifts. - Margins are expected to improve as Electron reaches target margins (~24 launches/year) and Neutron matures, eventually achieving Space Systems' target margins. - Longer-term targets include gross margins around 50% or greater and operating margins in the mid- to upper-20% range. - International opportunities and hypersonics markets may broaden revenue base beyond U.S. - Q1 2026 adjusted EBITDA loss was $11.8 million, better than guidance, driven by higher revenue and strong gross margin.

From Rocket Lab Corporation's Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Rank 2

Q2 2026 revenue is expected between $225 million and $240 million, reflecting 16% quarter-over-quarter growth.
Longer-term, strong top-line growth is anticipated, supported by scale-up of satellite platforms and Neutron launch vehicle.
Electron and HASTE launch frequency is targeted at about 24 launches per year, with HASTE potentially reaching ~20-25% of total launches.
Space Systems revenue is expected to grow with increasing mix contribution, alongside Electron launches, but no dramatic near-term shifts.
Margins are expected to improve as Electron reaches target margins (~24 launches/year) and Neutron matures, eventually achieving Space Systems' target margins.

2 more points management made on revenue & sales performance

Profitability & Margins

Q1 2026 adjusted EBITDA loss was $11.8 million, better than guidance, driven by higher revenue and strong gross margin.
Q2 2026 revenue guidance: $225M-$240M, reflecting 16% QoQ growth at midpoint.
Q2 2026 GAAP gross margin expected between 33%-35%; non-GAAP gross margin 38%-40%, impacted by Space Systems business mix.
GAAP operating expenses for Q2 projected at $138M-$144M; non-GAAP $120M-$126M, with increases from Monarch acquisition and Neutron development.
Adjusted EBITDA loss for Q2 expected between $20M and $26M.
Long-term targets include gross margins around 50% or greater and operating margins in mid to upper 20% range.

2 more points management made on profitability & margins

See what Rocket Lab Corporation said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

Capital expenditures in Q1 2026 were $27.1 million, down from $49.7 million in Q4 2025.
The decrease reflects less capital investment in Neutron development, specifically the return on investment recovery barge and the launch complex 3 pad at Waltz, Virginia.
Going forward, capital expenditures are expected to remain elevated to support:
Neutron testing and production scaling.
Infrastructure expansion.
The company continues to invest strategically in acquisitions such as Geost, Optical Systems, Monarch, and MOI, which will add to market opportunity and growth.

2 more points management made on capital expenditure plans

Fundraising & Capital Structure

Recently completed an ATM (at-the-market) equity offering, raising $450.4 million during the quarter.
In April, completed another ATM offering raising an additional $24 million in cash.
Entered into a collared forward transaction with a floor price of $474 million.
Access to capped call transaction proceeds related to 2024 convertible notes offering, with a maximum payment of $201.9 million by maturity in 2029.
February 2024, raised $355 million through convertible bond offering with an effective post-capped call price of $8.04/share.
Executed three ATM facilities at increasing average prices of $26.19, $47.85, and $70.47 per share respectively.
Recent ATM included collared forward transactions with floor price of $63.61 and ceiling price of $86.11.

2 more points management made on fundraising & capital structure

See what Rocket Lab Corporation said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Yes

Rocket Lab's backlog has surpassed $2 billion in contracted revenue, marking a 20% increase over the quarter and 108% year-on-year growth—the highest ever recorded.
In Q1 2026, they booked more launches (31 Electron and HASTE missions plus 5 Neutron contracts) than in all of the previous year.
Current launch backlog includes over 70 Electron and HASTE missions, setting a new record.
HASTE orders alone account for almost one-third of the total launch backlog.
The company secured a $190 million 20-launch order through Kratos for the Department of War and MACH-TB, the largest single order within the program.

2 more points management made on order book & pipeline

Others in Aerospace and Defense this season

Kratos Defense & Security Solutions, Inc. (Q2 FY26)
Kratos Defense & Security Solutions, Inc. Q2 FY26 quarterly results analysis. Hypersonics revenue expected to grow from $400 million in 2026 to $700 million in
Leonardo DRS, Inc. (Q2 FY26)
Leonardo DRS, Inc. Q2 FY26 quarterly results analysis. Revenue growth in 2026 is expected between 7% to 9% year-over-year. Market Cap $12,914, P/E 42.8. AI-powe
Huntington Ingalls Industries, Inc. (Q2 FY26)
Huntington Ingalls Industries, Inc. Q2 FY26 quarterly results analysis. Shipbuilding revenue expected to grow steadily; reported 17.6% increase in Q1 2026 vs. M
BWX Technologies, Inc. (Q2 FY26)
BWX Technologies, Inc. Q2 FY26 quarterly results analysis. BWXT expects overall 2026 revenue of at least $3.75 billion, up high teens compared to 2025. Market C

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Frequently Asked Questions

What were Rocket Lab Corporation Q2 FY26 results?

What is Rocket Lab Corporation share price analysis?

Rocket Lab Corporation currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of -12994.6 with a market cap of $85,690. Investors should review the full earnings analysis for detailed insights.

Is Rocket Lab Corporation planning capital expenditure?

- Capital expenditures in Q1 2026 were $27.1 million, down from $49.7 million in Q4 2025.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.