Rocket LabXSWX:RKLB 71 Gross Margin % is 38.18% as of Mar. 2026, which is 154% above its 10-year median of 15.01. GuruFocus rates XSWX:RKLB with a GF Score™ of 71/100 and a GF Value™ of CHF21.59. The stock has 1 warning sign investors should review. Among 343 Aerospace & Defense companies, Rocket Lab ranks better than 68.51% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Rocket Lab's Gross Profit for the
three
months ended in Mar. 2026 was CHF76.5 Mil. Rocket Lab's Revenue for the
three
months ended in Mar. 2026 was CHF200.3 Mil. Therefore, Rocket Lab's Gross Margin % for the quarter that ended in Mar. 2026 was 38.18%.
The historical rank and industry rank for Rocket Lab's Gross Margin % or its related term are showing as below:
XSWX:RKLB'
s Gross Margin % Range Over the Past 10 Years
Min: -33.61 Med: 15.01 Max: 36.56
Current: 36.56
During the past 6 years, the highestGross Margin % of Rocket Lab was 36.56%. The lowest was -33.61%. And the median was 15.01%.
XSWX:RKLB's Gross Margin % is ranked better than 68.51% of 343
companies
in the Aerospace & Defense industry
Industry Median: 26.61
vs XSWX:RKLB: 36.56
Rocket Lab had a gross margin of 38.18% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Rocket Lab was 0.00% per year.
Rocket Lab (XSWX:RKLB) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Rocket Lab had a gross margin of 38.18% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Rocket Lab Gross Margin % Related Terms
Rocket Lab Gross Margin % Historical Data
* Premium members only.
The historical data trend for Rocket Lab's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, Rocket Lab's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rocket Lab Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rocket Lab's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rocket Lab's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Rocket Lab (XSWX:RKLB) has a Gross Margin % of 38.18% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rocket Lab and its competitors. This is 154% above median its historical median of 15.01. According to the industry distribution chart, Rocket Lab ranks #108 out of 343 companies in the Aerospace & Defense industry, placing it in the top 31.5%.
Is Rocket Lab's Gross Margin % too high?
Rocket Lab's current Gross Margin % of 38.18% is 154% above median its 10-year median of 15.01. The Aerospace & Defense industry median Gross Margin % is 26.61. Rocket Lab's value of 38.18% is 43.5% above this industry median. Based on the distribution chart, Rocket Lab ranks #108 out of 343 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Rocket Lab has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Rocket Lab's Gross Margin % compare to ?
According to the Aerospace & Defense industry distribution chart, Rocket Lab ranks #108 out of 343 companies for Gross Margin %. This puts Rocket Lab in the upper half of its industry. The industry median Gross Margin % is 26.61. Rocket Lab's value of 38.18% is 43.5% above this benchmark. While the company's 10-year median is 15.01 vs. the industry median of 26.61, Rocket Lab has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.61, based on 343 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rocket Lab's current Gross Margin % of 38.18% is 43.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Rocket Lab and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rocket Lab's current Gross Margin % is 38.18%, which is 154% above median its own 10-year median of 15.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rocket Lab stock overvalued right now?
Rocket Lab (XSWX:RKLB) has a current Gross Margin % of 38.18%. The stock's GF Value™ is CHF21.59, compared to a current price of CHF81.13 — trading 275.8% above its estimated fair value. The current Gross Margin % is 38.18%, which is 154% above median its 10-year median of 15.01 and 43.5% above the Aerospace & Defense industry median of 26.61. Rocket Lab's overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Rocket Lab (XSWX:RKLB), the current Gross Margin % is 38.18% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rocket Lab (XSWX:RKLB) Overvalued in 2026?
Based on GuruFocus' analysis, Rocket Lab stock appears to be overvalued.
The current stock price of CHF81.13 is trading 275.8% above its estimated GF Value™ of CHF21.59.
Key valuation signals for XSWX:RKLB:
Gross Margin %: 38.18% (154% above median its 10-year median of 15.01)
GF Value™: CHF21.59 vs. price of CHF81.13 (275.8% above fair value)
Industry Position: 43.5% above the Aerospace & Defense median (#108 of 343)
No single metric tells the full story. See the XSWX:RKLB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rocket Lab Corp is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that provide frequent and reliable access to space for civil, defense, and commercial markets. It designs and manufactures the Electron and Neutron launch vehicles and Photon satellite platform. Rocket Lab's Electron launch vehicle has delivered multiple satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. The business operates in two segments Launch Services and Space Systems. Geographically it serves Japan, and rest of the world and earns key revenue from the United States.
71GF Score
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