Rocket Lab’s Reckoning: Record Numbers, Rocket‑Launch Delays, and a Shaky Market

Rocket Lab Corp’s share price has tumbled to $69.97 on February 23, 2026, a stark contrast to the $99.58 high it hit just a month earlier. The company’s market cap sits at $37.5 billion, while its price‑to‑earnings ratio plunges into the negative at -181.47, a glaring sign that investors are struggling to reconcile the firm’s earnings with its lofty valuations.

The latest quarter’s headline figures paint a picture of paradox. Rocket Lab reported a record quarterly revenue of $180 million and a record annual revenue of $602 million, up 38 % year‑over‑year. The backlog swelled by 73 %, suggesting robust future demand. Yet the stock slipped sharply in after‑hours trading after the release of these numbers. The market’s reaction underscores a persistent skepticism: revenue growth alone cannot offset the operational headwinds the company faces.

Launch Delays: The “Record Year” That Missed the Target

The Neutron rocket—expected to launch last year—now faces an end‑of‑2026 launch window. This delay is the latest blow to an otherwise “record year.” The company’s own press release noted that the rocket’s debut was postponed, a setback that has already eroded investor confidence. For a company that markets itself as a disruptive player in the space‑launch industry, such a delay is not merely a hiccup; it signals deeper technical or logistical issues that could ripple across future contracts.

Strategic Expansion Meets Operational Risk

In the same week, Rocket Lab announced several strategic moves:

  • New precision‑machining complex acquired from Precision Components Ltd., expanding its manufacturing footprint.
  • Acquisition of Optical Support, Inc., bolstering its national‑security payload capabilities.
  • Spacecraft commissioning for NASA’s ESCAPADE Mars Mission, a high‑profile project that should cement its reputation.

While these announcements demonstrate ambition, they also reflect a rapid scaling strategy that may overextend the company’s resources. The simultaneous execution of multiple acquisitions and high‑profile contracts is a recipe for operational strain, especially when coupled with the Neutron delay.

Contract Wins: A Buffer or a Bandage?

Rocket Lab’s recent multi‑launch contract with BlackSky for four dedicated Electron missions is a positive headline. It provides immediate revenue and showcases the company’s ability to secure long‑term business. However, the contract’s value relative to the firm’s total revenue remains modest, and it does not fully offset the negative cash flow that the company may experience due to the Neutron launch postponement.

Investor Sentiment: From Optimism to Skepticism

Prior to the earnings announcement, some investors were bullish, as reported by The Motley Fool (“Rocket Lab Is Days From a Major Earnings Report – and Bettors Are Quietly Getting Bullish”). The optimism was short‑lived: the after‑hours slide in the stock price reveals a market that has quickly pivoted to a more cautious stance. The negative P/E ratio suggests that investors are discounting future earnings or are wary of the company’s ability to convert revenue into profits.

Bottom Line

Rocket Lab’s record revenue and expanding backlog paint a superficially attractive picture, yet the persistent launch delays, rapid scaling, and negative valuation metrics paint a more alarming reality. The company’s aggressive expansion strategy, while potentially rewarding in the long term, currently strains its operational and financial stability. Investors must weigh the allure of high revenue growth against the tangible risks of delayed launches, overextension, and a market that has already punished the stock for its perceived overvaluation.