Why Rocket Lab Stock Plummeted as Much as 16% Today

RKLB fell as much as 16% after Rocket Lab announced a one-year delay to its Neutron reusable rocket, pushing the launch to 2027. The company cited a propellant dome manufacturing issue as the cause.

The selloff reflects a repriced timeline for Neutron, a program tied to Rocket Lab's reusable launch ambitions. A full year of slippage defers any revenue contribution from the vehicle, and the 16% intraday drop shows how quickly the market punished the shift.

Analysts did not capitulate. KeyBanc and Clear Street both maintained positive ratings on RKLB while lowering their price targets. That split is worth reading carefully: the firms are trimming valuation to reflect the delay, yet they are not changing their view on the underlying story.

The backdrop helps explain that stance. Rocket Lab ended Q2 2026 with a record $2.36 billion backlog. Interpretation: a backlog at that level suggests demand for the company's launch services remains intact, and the delay is a scheduling problem rather than a demand problem.