Key Points
- The potential SpaceX IPO has put the space sector in the spotlight, but Rocket Lab and Planet Labs are already delivering exceptional returns with or without it.
- Rocket Lab completed 21 successful launches in 2025, achieving a 100% mission success rate, and grew its backlog to $1.85 billion.
- Planet Labs just reported record revenue, reached adjusted EBITDA profitability for the first time, and saw several analysts raise price targets to $40.
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The space sector may be on the verge of its biggest moment yet. Reports and rumors are circulating that SpaceX, the world's largest space company, could announce its long-awaited IPO as early as mid-2026, with early estimates placing its valuation near $1.5 trillion. If that materializes, it would rank among the largest IPOs in history and could send the entire aerospace sector to new heights.
But even before SpaceX trades publicly, the space sector is already having a standout year. Rocket Lab (NASDAQ: RKLB) is up about 230% in the past year. Planet Labs (NYSE: PL) has surged more than 700% over the same period and is up a remarkable 65% year to date. With a rising defense budget, a potential landmark IPO on the horizon, and several sector names already delivering exceptional returns, 2026 is shaping up to be a defining year for space stocks. Here are two worth watching closely.
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Rocket Lab: Building the Infrastructure of the Space Economy
Rocket Lab is an end-to-end aerospace company that provides launch services, spacecraft, and space systems to both commercial and government customers. Its primary launch vehicle, the Electron rocket, is a small-lift orbital rocket designed to deploy satellites and rideshare payloads to low Earth orbit. With over 250 satellites launched and more than 1,700 satellites in orbit carrying Rocket Lab technology, Electron has established itself as one of the most reliable and frequently flown small-lift rockets in the world.
The company's most anticipated catalyst is Neutron, its medium-lift rocket designed to compete directly with SpaceX's Falcon 9. Built for mega-constellation deployment and deep space missions, Neutron will carry payloads of up to 13,000 kilograms, dramatically expanding Rocket Lab's addressable market.
The fundamentals for Rocket Lab continue to impress. In Q4 2025, Rocket Lab reported EPS of negative 3 cents, beating the consensus estimate of negative 5 cents, with quarterly revenue rising 48% year over year to $155.08 million. The company closed out 2025 with a record 21 successful launches, a 100% mission success rate, and a backlog that climbed 73% to $1.85 billion. Roughly 37% of that backlog is expected to convert to revenue within the next 12 months, providing strong forward visibility. Analysts maintain a consensus Moderate Buy rating, with a price target implying over 15% additional upside from current levels.
Planet Labs: Record Revenue and a Breakout Quarter
Planet Labs was founded with a bold mission: to image the entire Earth every day and make that data visible, accessible, and actionable. The company operates one of the largest fleets of Earth-imaging satellites in the world, delivering high-frequency, high-resolution imagery and data analytics to customers across government, agriculture, energy, and finance.
That mission is translating into accelerating financial results. In its most recent quarter, Planet Labs reported revenue of $86.8 million, up 41% year over year and a new record. Full-year revenue for the fiscal period ending 2026 rose 26% to $307.7 million, also a record.
Perhaps most significantly, the company reached adjusted EBITDA profitability for the first time in a fiscal year and generated positive free cash flow, two milestones that mark a meaningful inflection point in the company's maturity.
Backlog climbed 79% year over year to $900 million, driven by strong government demand, new satellite launches, and expanding partnerships.
Looking ahead, management guided fiscal 2027 revenue of $415 million to $440 million. Institutions have been active buyers, with $693 million in inflows over the prior 12 months versus $308 million in outflows. Following the results, analysts at Cantor Fitzgerald, Wedbush, and Needham all raised their price targets to $40, implying nearly 47% upside potential at the time of the report.
With a potential SpaceX IPO on the horizon and sector momentum already building, both Rocket Lab and Planet Labs are well worth keeping on your radar.
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