Shares of Rocket Lab USA, Inc. (RKLB) surged 7.03% in the last 24 hours following the company's release of its third-quarter 2025 financial results, which exceeded analyst expectations and showcased strong growth across key metrics.

The space technology company reported record quarterly revenue of $155 million, representing a 48% year-over-year increase and beating the analyst consensus estimate of $151.745 million. Rocket Lab also posted a smaller-than-expected loss of $0.03 per share, significantly outperforming the analyst estimate of a $0.11 loss.

Several factors contributed to Rocket Lab's strong performance and positive investor sentiment: 1. Record-breaking launch contracts: The company secured 17 Electron launch contracts in Q3, marking its best quarter ever for dedicated launch contracts. 2. Improved profitability: Rocket Lab achieved a record GAAP gross margin of 37% for the quarter. 3. Strategic acquisition: The company closed its acquisition of Geost, an electro-optical and infrared sensor maker, for up to $325 million, expanding its capabilities in U.S. national security. 4. Strong backlog: CEO Peter Beck highlighted the company's "record backlog of contracts for our launch services business."

Looking ahead, Rocket Lab provided an optimistic outlook for Q4, projecting revenue between $170 million and $180 million, which surpassed the Wall Street consensus of $172 million. The company also remains on track to surpass its previous annual launch record, with more than 20 launches expected by the end of the year.

Investors were particularly encouraged by Rocket Lab's progress across its major space systems programs and its strategic positioning for future growth in areas aligned with next-generation defense programs. The company's strong momentum and potential for long-term growth have clearly resonated with the market, driving the significant stock price increase.