RKLB Stock Alert: What to Know as Rocket Lab Secures Its Largest Contract Yet

Rocket Lab (RKLB) stock rallied in early trading on Monday after the Nasdaq-listed firm secured its largest launch contract to date. In a press release this morning, RKLB said it has signed a landmark $266 million agreement with the U.S. Space Force for missile defense testing. 

The announcement arrives at a time when Rocket Lab stock is struggling to regain momentum. In the trailing two months, the company has lost more than 55%.

A Sneak Peek Into Rocket Lab’s Deal With USSF

Under the USSF agreement, Rocket Lab will conduct 12 suborbital launches dedicated to missile defense research, development, and complex target testing, with options for up to six additional missions. 

Launch operations will primarily be staged from the Pacific Spaceport Complex in Kodiak, Alaska. The initial mission is slated for no earlier than late 2026, with contract execution running through the end of 2028. 

This multi-year defense deal is bullish for RKLB shares as it significantly widens the company’s suborbital footprint alongside its flagship Electron orbital program.

Note that Rocket Lab’s relative strength index (RSI) sits in the early 30s currently, reinforcing that the stock is now approaching oversold territory, which often triggers a relief rally. 

What the USSF Agreement Means for RKLB Shares

Investors are cheering the USSF news because the backlog expansion establishes a predictable, high-margin revenue stream for RKLB through 2028.

Deepening ties with the Department of Defense cements Rocket Lab’s role as a trusted national security space partner, reducing reliance on the commercial satellite sector.

Management could use the steady cash flow from the USSF deal to support capital expenditure as RKLB scales toward the maiden flight of its medium-lift Neutron rocket. 

All in all, securing a competitive $266 million defense award is constructive for Rocket Lab shares as it proves the firm’s speed, execution, and cost efficiency continue to disrupt legacy defense contractors. 

Wall Street Remains Bullish on Rocket Lab

Despite recent underperformance, Wall Street remains bullish on Rocket Lab for the remainder of 2026. 

The consensus rating on RKLB stock sits at “Strong Buy,” with the mean price target of about $113 indicating potential upside of nearly 80% from here.