Aerospace and defense company Rocket Lab (NASDAQ: RKLB) reported Q3 2026 results beating Wall Street’s revenue expectations, with revenue rising 72.7% year on year to $267.8 million. In addition, next quarter’s revenue guidance ($280 million at the midpoint) was surprisingly strong, coming in 5.1% above analysts’ consensus estimates. Its non-GAAP loss of $0 per share was $0.01 above analysts’ consensus estimates.

For more on Rocket Lab, read our free full research report.

Rocket Lab founder and CEO Sir Peter Beck says: “Q3 2026 was a defining quarter for Rocket Lab. We delivered a record $268 million in revenue ($34 million higher than Q2 2026) alongside a record backlog which has grown to $3.57 billion. Nearly $1 billion of that backlog comes from new launch contracts, signed in Q3 2026 alone, as well as $470 million signed for Space Systems. Our end-to-end space strategy is delivering exactly as designed: the world's most critical and ambitious missions increasingly rely on Rocket Lab for launch, spacecraft, and components, sometimes all on a single mission, and every part of our business is growing as a result.”

Revenue growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones sustain growth for years. Rocket Lab’s revenue grew at a strong 77.2% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers.

Long-term growth matters most, but within industrials, a half-decade historical view may miss cycles, industry trends or a company capitalizing on catalysts such as a new contract win or a successful product line. Rocket Lab’s annualized revenue growth of 55.7% over the last two years is below its five-year trend, but the results still suggest healthy demand.

This quarter, Rocket Lab reported year-on-year revenue growth of 72.7%, and its $267.8 million of revenue beat Wall Street’s consensus estimates by 3.8%. Management is guiding for a 55.9% year-on-year increase in revenue next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 43.9% over the next 12 months, according to S&P, a deceleration versus the last two years. Despite the slowdown, this projection remains strong and implies the market is forecasting success for its products and services.

Operating margin

Over the last five years, Rocket Lab’s operating margin rose by 37.9 percentage points. This improvement shows its costs declined relative to revenue. Its trailing 12-month operating margin was negative 27.6%.

Rocket Lab’s operating margin was negative 29.6% this quarter.

Earnings per share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth. For example, a company could inflate its revenue through excessive spending on advertising and promotions.

Rocket Lab’s full-year EPS turned negative over the last four years. Diminishing earnings warrant close attention because they could imply changing secular trends and preferences.

As with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Rocket Lab, its two-year annual EPS growth of 42.7% was higher than its four-year trend. Its improving earnings are a positive sign, but a caveat is that its EPS is still in the red.

In Q3, Rocket Lab reported adjusted EPS of negative $0, up from negative $0.02 in the same quarter last year. This result was well ahead of analysts’ consensus estimates, a positive outcome for shareholders. Wall Street’s outlook for the next 12 months is positive. Analysts forecast Rocket Lab’s full-year EPS will turn positive, from negative $0.08 to positive $0.05, according to S&P.

Key takeaways from Rocket Lab’s Q3 results

Rocket Lab turned in a solid Q3, with EPS above analysts’ consensus estimates and EBITDA beating Wall Street’s consensus by a wide margin. The outlook was less favorable, as EBITDA guidance for next quarter missed expectations. Shares remained flat at $58.20 immediately after the report.

Assessing whether Rocket Lab is a buy requires considering its valuation, business quality and latest quarterly results. For more on Rocket Lab, read the full research report here (it’s free).