Shares of Rocket Lab USA, Inc. (RKLB) have gained 74.4% in the past three months, surpassing the 9.4% growth of the Zacks Aerospace-Defense Equipment industry. It also outperformed the Zacks Aerospace sector’s growth of 9% and the S&P 500’s rise of 8.9%.
Image Source: Zacks Investment Research
Other defense equipment stocks, such as AAR Corporation (AIR) and Curtiss-Wright Corporation (CW), have also outperformed the industry in the past three months. Shares of AIR have gained 19.7%, while shares of CW have gained 16.6%.
With RKLB’s robust performance on the bourses, some investors may consider buying the stock right away. However, before taking any decision, it is important to understand the reasons behind this robust performance. Does the company have what it takes to continue this momentum, or are there risks that may affect its growth? The idea is to help investors make a more insightful decision.
Rocket Lab’s share gains over the past three months seem to be supported by its strong revenue performance in the recent quarterly results, notable acquisitions and contract wins. Notably, in August 2025, the company announced its second-quarter 2025 results, wherein its revenues of $144 million beat estimates by 7% and surged 36% year over year.
In August, RKLB also completed the acquisition of GEOST, which will now allow it to provide electro-optical and infrared (EO/IR) sensor systems and thus strengthen its position in next-generation defense technology space. In the same month, Rocket Lab reached an integration milestone for the U.S. Space Force’s Victus Haze mission. This achievement showed its ability to deliver responsive space operations from payload preparation to launch.
In July 2025, RKLB selected Bollinger Shipyards to support modifications for its Neutron landing platform. This step is important for preparing the rocket’s future reusable operations and expanding into the medium-lift launch market.
Moreover, in June, Rocket Lab got selected to launch a dedicated Electron mission for the European Space Agency (ESA) for the first time, to deploy the first pair of satellites for a future navigation constellation for Europe.
These catalysts must have boosted investor confidence in RKLB’s market potential and thereby driven its share price higher over the past three months.
Rocket Lab continues to build growth momentum through successful missions, acquisitions and new product development. In August 2025, it launched its 69th Electron rocket for Institute for Q-shu Pioneers of Space, Inc., marking the 11th successful mission this year with a 100 percent success rate. Frequent launches are expected to support its goal of completing more than 20 Electron missions in 2025, which shows strong demand and growing trust from both commercial and government clients. These launches also fetch solid revenue and earnings growth for the company in the coming quarters.