Rocket Lab Lands Major $816 Million US Contract Amid Stock Market Fluctuations

NEW YORK, Dec. 28, 2025 — Rocket Lab Corporation has secured a significant satellite contract from the U.S. Space Development Agency (SDA), marking a pivotal moment for the space technology firm. This $816 million agreement is tied to the SDA’s Tracking Layer Tranche 3, aimed at enhancing national security through satellite technology.

Shares of Rocket Lab (Nasdaq: RKLB) experienced a dramatic shift in trading recently, closing at $70.65 after a drop of 8.46% on Friday. The stock earlier reached a record high of $79.83 this month, highlighting its volatility amid investor speculation about its future.

The contract, announced through an 8-K filing on December 17, includes the design and operation of 18 satellites, with an expected delivery date in 2029. Rocket Lab’s CEO Sir Peter Beck emphasized the company’s move toward becoming a major player in defense contracting, stating that this win signifies the company’s expanded capabilities beyond launching rockets.

According to Rocket Lab’s disclosure, the deal includes potential additional revenues through “merchant supplier” opportunities, which could increase total contract value towards $1 billion. Analyst reports suggest this development enhances Rocket Lab’s reputation as a viable defense contractor.

In 2025, Rocket Lab completed its 21st Electron rocket launch, achieving a record for the year with a 100% mission success rate. This achievement indicates robust operational capabilities that maintain investor confidence.

Wall Street analysts responded positively to the news, with some raising their price targets for Rocket Lab stock significantly. Needham increased its target from $63 to $90, asserting that this contract provides crucial validation for Rocket Lab’s position as a defense contractor.

Despite the initial euphoria around the contract win, recent trading sessions have shown signs of profit-taking among investors, leading to concerns about the sustainability of the stock’s momentum. The upcoming weeks will be critical as Rocket Lab prepares for its next Electron launch, scheduled for early 2026, as it navigates this challenging market environment.