Why Is Rocket Lab (RKLB) Stock Rising Today? Major Contract and Record Launches

Rocket Lab Corporation (RKLB) is experiencing significant momentum in premarket trading, surging 5.23% to $74.21 as of 5:10 AM EST on December 22, 2025. This follows a remarkable 17.69% gain during the previous trading session, which closed at $70.52.

The aerospace and defense company’s stock is rallying on the back of two major catalysts: securing its largest contract to date worth $816 million from the U.S. Space Development Agency and successfully completing its 21st Electron rocket launch of the year, achieving a perfect 100% mission success rate for 2025.

Record-Breaking $816 Million Defense Contract

On December 19, 2025, Rocket Lab announced it had been awarded a landmark $816 million prime contract by the U.S. Space Development Agency to design and manufacture 18 satellites for the Tracking Layer Tranche 3 program.

This represents the company’s largest single contract to date, with potential additional revenue from supplying subsystems to other prime contractors that could push the total capture value to approximately $1 billion.

The satellites will be equipped with Rocket Lab’s next-generation Phoenix infrared sensor payload and advanced StarLite space protection sensors designed to provide global detection and tracking of emerging missile threats, including hypersonic systems.

This award builds on Rocket Lab’s existing $515 million contract for the Transport Layer-Beta Tranche 2 program, bringing the company’s total contract value from the Space Development Agency to more than $1.3 billion. CEO Peter Beck emphasized that as the only commercial provider producing both spacecraft and payloads in-house for the SDA Tracking Layer, Rocket Lab is delivering a disruptive solution that fundamentally shifts how national security space programs are executed.

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Perfect Mission Record: 21 Launches with 100% Success

Rocket Lab successfully launched its 21st Electron rocket of 2025 on December 21, deploying the QPS-SAR-15 satellite for Institute for Q-shu Pioneers of Space (iQPS), a Japan-based Earth imaging company.

This achievement set a new annual launch record for Electron with 21 launches in one year and a perfect 100% mission success rate, cementing Electron’s position as America’s preeminent small launch provider and the world’s most frequently-launched small-lift orbital rocket.

Rocket Lab has become the primary launcher for iQPS, having deployed seven satellites to the company’s synthetic aperture radar constellation since 2023, with five additional launches planned for 2026. The consistent execution and reliability demonstrated throughout 2025 showcase Rocket Lab’s operational maturity and its ability to support constellation deployment missions at scale.

RKLB Stock Outperforms Broader Market in 2025

Rocket Lab’s stock has delivered exceptional returns for investors, with year-to-date gains of 176.87% compared to the S&P 500’s 16.20% return. Over the past year, RKLB has surged 203.70%, significantly outperforming the broader market.

The stock’s three-year return stands at an impressive 1,708.21%, reflecting strong investor confidence in the company’s growth trajectory. Trading volume reached 52.76 million shares on December 19, more than double its average volume of 22.71 million shares.

The company currently has a market capitalization of $37.67 billion, with analyst price targets ranging from $47 to $85 and an average target of $66.50. The stock opened at $61.12 on December 19 and experienced a day’s range of $60.75 to $70.56 before closing at $70.52.

With 14 analysts rating the stock as “Strong Buy” or “Buy,” market sentiment remains highly positive as Rocket Lab continues to secure major contracts and demonstrate operational excellence.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.