Rocket Lab Corporation (NASDAQ:RKLB) shares continued to decline on Tuesday after falling roughly 7% in extended trading Monday. The decline came despite second-quarter revenue climbing 62% to a record $234 million and exceeding Wall Street expectations. The market focused on what changed beyond the headline result.
Rocket Lab Corporation (NASDAQ:RKLB) previously targeted Neutron's inaugural flight for the fourth quarter of 2026. Management's current disclosed target is to deliver the medium-lift rocket to the launch pad during the quarter, while CEO Peter Beck acknowledged that the window for a launch before year-end was narrowing. The company also forecast a third-quarter GAAP gross margin of 29% to 31%, well below the 37.6% analyst estimate compiled by LSEG.
The revenue growth is genuine, but the weaker margin outlook and less specific launch target exposed how much of Rocket Lab Corporation (NASDAQ:RKLB)'s longer-term earnings story still depends on Neutron. The bull case is that Rocket Lab Corporation (NASDAQ:RKLB) no longer depends entirely on launch revenue to build a meaningful space business. Space Systems generated $189.5 million during the second quarter, representing 81% of company revenue and increasing 38.6% sequentially.
The growth came primarily from satellite manufacturing, along with an initial contribution from the recently acquired Mynaric business. That scale matters because Rocket Lab Corporation (NASDAQ:RKLB) can sell spacecraft, components, solar products, flight software, and other systems even before Neutron begins flying. Launch Services generated only $44.6 million during the quarter, yet the company still produced record consolidated revenue.
The backlog provides additional visibility. Rocket Lab Corporation (NASDAQ:RKLB) ended June with a record $2.36 billion backlog, up 137% year over year. Space Systems accounted for 60% of the total, giving the company a substantial base of contracted work that does not depend on the timing of Neutron's first flight.
Management expects the top line to keep expanding. Third-quarter revenue is forecast between $250 million and $265 million, which would establish another company record. Rocket Lab also said it signed more than $1 billion of new contracts across the second quarter and the period through the earnings date, including contract options.
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