Rocket Lab Posts Record Quarterly Revenue of $268 Million as Backlog Jumps 52%
Key Facts
Rocket Lab said on November 9 that it posted record quarterly revenue of $268 million in the third quarter of 2026, up 73% year over year, and its backlog reached a record of nearly $3.6 billion, up 52% since the end of the second quarter. The company said in its earnings release that demand for launch services, spacecraft and components supported the growth. The backlog represents contracted work the company will carry out later, while it recorded positive GAAP operating cash flow of $7.2 million over the same period. Before the results were released, its shares closed at $53.07 on November 6. The company set its fourth-quarter outlook for revenue and gross margins within ranges disclosed in its release.
Revenue came in above the guidance Rocket Lab provided in the second quarter, when it forecast third-quarter revenue of $250 million to $265 million, GAAP gross margins of 29% to 31%, and non-GAAP gross margins of 35% to 37%. Second-quarter revenue was $234 million, up 62% year over year, while backlog at the end of the quarter reached $2.36 billion, up 137% year over year. Compared with that level, backlog rose to about $3.6 billion at the end of the third quarter, after growing 52% since the end of the prior quarter. The figures show revenue and backlog continued to expand over two consecutive quarters, with third-quarter revenue growth faster year over year than the increase recorded in the second quarter. Positive operating cash flow of $7.2 million adds a cash-flow measure to the revenue and backlog results.
Rocket Lab said it signed new launch contracts worth nearly $1 billion during the third quarter across its Electron, HASTE and Neutron rockets, bringing its total backlog of contracted launches to 117 missions. The release attributed backlog growth to demand for launch services, spacecraft and components, and cited new contracts in the launch and space systems segments. The three contracts cover different launch platforms, and their disclosure links new bookings with an expanding pipeline of future work. The company said 12 spacecraft it built had been launched into orbit and were operational, while more than 55 spacecraft were in development and production. These figures place spacecraft manufacturing alongside launch services at the center of the expansion described in the company's results. The release does not provide separate revenue figures for these activities here.
For the fourth quarter of 2026, the company expects revenue of $270 million to $290 million, GAAP gross margin of 34% to 36%, and non-GAAP gross margin of 39% to 41%. The low end of the revenue range is above third-quarter revenue of $268 million, while both margin ranges are higher than the third-quarter guidance the company provided in the previous quarter. The release presents the two margin measures separately: one under generally accepted accounting principles and the other on a non-GAAP basis. Meeting this outlook is the next operating milestone the company set after its third-quarter results. The company had said its results would be released after the U.S. market close on November 9, followed by an investor call at 5 p.m. Eastern time that day.
On expansion, Rocket Lab said it had fully funded its pending acquisition of Iridium Communications through an at-the-market equity offering that had already been completed, and had received approval from Iridium's lenders and shareholders. The disclosure places the deal among the company's steps to expand its space business, alongside the launch and spacecraft manufacturing activities covered in the earnings release. The information provided here does not include the deal's value or a completion date, but the company said it had completed the funding and obtained the stated approvals. The deal remains pending, according to the company, despite those steps. The specific financial outlook for the next period remains the fourth-quarter revenue and margin forecast the company announced.