New York, Jan 22, 2026, 17:36 EST — After-hours
- Rocket Lab shares ended flat following an early drop linked to a Neutron test failure
- Company said it is reviewing data to assess any impact on the Neutron launch timeline
- Rocket Lab announced a successful Electron launch for newcomer Open Cosmos
Shares of Rocket Lab Corporation closed Thursday up 0.2%, finishing at $87.98. The stock saw a wide range, swinging between $81.35 and $89.40, as investors digested a test failure on the company’s next-gen Neutron rocket alongside new details about an Electron launch. (StockAnalysis)
This move is crucial as Neutron represents Rocket Lab’s push beyond just small-satellite launches into heftier missions. The stakes rise sharply here, with bigger payoffs but tighter deadlines that don’t tolerate delays.
Any delay would force Rocket Lab to rely even more heavily on its smaller Electron rocket and space-systems business, while competitors with bigger rockets maintain their edge in bulk launch capacity.
Rocket Lab revealed in a Wednesday filing that a Neutron Stage 1 tank ruptured during a hydrostatic pressure test—where liquid is used to verify structural integrity under load. The company reported no major damage to either the test rig or facilities. Another Stage 1 tank is already being built as Rocket Lab reviews the data to assess any impact on the launch timeline. (SEC)
Rocket Lab described the incident as routine qualification testing, noting it “intentionally” pushes structures to their limits to confirm safety margins ahead of flights. The company, however, didn’t specify whether this would affect the schedule.
Just hours later, the company highlighted strong operational momentum with its current launcher, completing its first Electron mission of 2026. It successfully deployed two satellites into a 1,050 km circular orbit for Open Cosmos. Founder and CEO Sir Peter Beck described the launch as “a great showcase” for Electron’s dedicated missions. (GlobeNewswire)
TD Cowen analyst Gautam Khanna flagged that the tank problem might disrupt Rocket Lab’s 2026 schedule if it causes a delay. “If a launch delay results from the tank rupture, a second Neutron launch in 2026 would be unlikely,” he noted in a Jan. 21 report. (Aviation Week)
Neutron sits at the heart of Rocket Lab’s strategy to handle bigger payloads and ramp up launch frequency, a space where SpaceX currently leads and clients expect firm scheduling.
Bulls face the risk that the review uncovers a design or manufacturing issue requiring more time than investors anticipate, delaying key milestones and driving up the cost to reach first flight.
Investors are eyeing Rocket Lab’s fourth-quarter earnings call in February, where the company plans to provide an update on the Neutron timeline. The exact date for the earnings release hasn’t been set, but MarketBeat currently projects it around Feb. 26. (Marketbeat)
