Why Is Rocket Lab Stock Price Rising in Pre-Market Today, August 5?

Rocket Lab (RKLB) stock is up by more than 4% in pre-market trading after soaring nearly 6% in the previous session. The latest rally came after the company secured a $397 million U.S. Space Force contract to build, launch, and operate satellites that can track airborne threats in real time. Overall, RKLB stock has gained almost 13% in the last 5 trading days as it prepares to announce its Q2 earnings on August 10.

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For context, Rocket Lab is a space launch company specializing in small orbital rockets and satellite solutions, best known for its Electron rocket and upcoming Neutron launch vehicle.

Rocket Lab to Build Flatellites

Under the Space-Based Airborne Moving Target Indicator (SB-AMTI) program, Rocket Lab will build a constellation of advanced Flatellites. These flat satellites, designed for large-scale deployments, will use space-based sensors to track airborne threats in real time, even in contested environments. The contract also includes an option to build additional satellites.

Rocket Lab will manufacture the spacecraft and launch them on its upcoming Neutron rocket. This allows the company to handle the entire mission, from building the satellites to managing them in orbit.

What It Means for Rocket Lab

The latest award adds to Rocket Lab's growing list of U.S. Space Force contracts. Just days earlier, the company won a $266 million contract for 12 suborbital launches, with an option for up to six more. The missions are expected to begin no earlier than the end of 2026.

Notably, this contract is more valuable than a typical launch deal. It includes an option for additional Flatellites, and Rocket Lab will also operate the satellites and provide mission data. That could create a longer-term source of revenue beyond the initial launch.

The deal further strengthens Rocket Lab's presence in the defense market. The company already works with the U.S. Space Force, NASA, DARPA (Defense Advanced Research Projects Agency), and the National Reconnaissance Office (NRO).

Q2 Earnings Ahead

Rocket Lab is set to report its second-quarter 2026 results on August 10.

Wall Street expects the company to report a loss of $0.06 per share, improving from a $0.13 loss a year ago. Revenue is projected to climb nearly 60% year-over-year to $231.6 million. Beyond the headline numbers, investors will look for updates on Rocket Lab's growing backlog and progress on its Neutron medium-lift rocket.

Rocket Lab's Neutron is designed to launch much larger payloads than the company's current Electron rocket. Analysts see Neutron rocket as a key growth driver as the company expands into larger launch missions.

Is RKLB a Good Stock to Buy?

According to TipRanks, RKLB stock has received a Strong Buy consensus rating, with 14 Buys and four Holds assigned in the last three months. The average price target for Rocket Lab is $111.13, suggesting a potential upside of 49.20% from the current level.