Rocket Lab USA, Inc. (RKLB) saw its shares fall nearly 8% in Wednesday's regular session, then drop another 7% to 8% in after-hours trading, after the company pushed the first launch of its Neutron rocket into 2027. The maiden flight had most recently been set for the fourth quarter of 2026.

Executives had warned that a delay was possible, which softened the surprise somewhat, but the market sold anyway. The reaction underscores how much weight investors put on Neutron, which anchors the company's push into larger satellite launches and sits behind its biggest launch commitment to date.

Word of the schedule change spread quickly across social media, including this post from Wall St Engine on X:

$RKLB DELAYS NEUTRON ROCKET'S FIRST LAUNCH TO 2027 Rocket Lab has pushed back the inaugural flight of its reusable medium-lift rocket, a key part of the company's expansion into larger satellite launches beyond its existing Electron program. The company did not provide a reason… pic.twitter.com/f8EFPT0H8x
— Wall St (@wallstengine) October 14, 2026

The company attributed the delay to a manufacturing problem with a carbon-composite part of the first-stage propellant tank and shared the news along with a new schedule. That updated schedule now sets the milestones customers and investors will track as the 2027 target approaches.

Rocket Lab flies one active orbital rocket family today: Electron. Neutron, a reusable medium-lift rocket built for heavier payloads, is set to become its second. Reusable rockets are designed to fly multiple missions rather than one, an approach launch providers use to spread hardware costs across flights, and the medium-lift class puts Neutron in the payload range above small launchers like Electron. It targets commercial satellite missions as well as national security work, and it is a key part of the company's expansion into larger satellite launches beyond the Electron program.

A Bumpy Road for Neutron

This is not the first hiccup for the program. In January, a first-stage tank ruptured during testing, and the company subsequently moved off its mid-2026 target. By August, executives said the window for a year-end debut was getting tight. Wednesday's update closed that window for good, with the new problem again involving the first-stage propellant tank, the part of the vehicle where January's rupture occurred. Investors who wanted to see Neutron fly this year now face a longer wait.

The delay also puts a spotlight on launch commitments. In May, Rocket Lab announced its largest launch deal, covering five Neutron missions and three Electron launches for an undisclosed customer. Those flights are set to take place between 2026 and 2029, and a working Neutron matters a great deal to that contract.

The Business Beyond the Rocket

The rest of the company has kept growing. Rocket Lab posted record second-quarter revenue of $234 million, up 62% from a year earlier. Backlog (contracted work booked but not yet delivered or recognized as revenue) reached $2.36 billion, more than double the year-earlier level — a solid cushion while Neutron catches up.

Government work has helped too. Rocket Lab won a U.S. Space Force contract worth up to $397 million for satellites that track airborne threats. A second deal, worth up to $266 million, covers suborbital launches for missile-defense programs. The company also plans to buy satellite communications provider Iridium, a deal that needs regulatory approval and is expected to close in 2027 — the same year Neutron is now scheduled to debut, making 2027 a year in which several of the company's biggest plans converge.

Wall Street has not backed away from the stock. Of the 18 analysts covering RKLB over the past three months, 15 say buy and 3 say hold, which makes for a Strong Buy consensus. The average 12-month price target is $104.44, pointing to a 76% gain from Wednesday's close. Those targets are analyst estimates rather than guarantees, and they tend to be revised as program milestones are met or missed.

This article originally appeared on CoinCentral.