Could These 3 Aerospace Firms Go Stratospheric in 2026?

Key Points

• Some space industry stocks have boomed this year, driven by hype surrounding federal defense spending, speculation about a SpaceX IPO, and more.
• Major contracts for Rocket Lab and L3Harris, each worth close to $1 billion, affirm these companies' dominance heading into 2026.
• AST SpaceMobile's rapid gains this year may cause some concern, but the firm's ambitious satellite launch plans and growing revenue could bode well.

2025 was a major year of achievements for the space industry, including historic advances in commercial space tourism, significant investment in new infrastructure, and the launch of new publicly traded firms that broadened market interest.

At the same time, NASA faces mounting financial pressure amid potential budget cuts, increasing the likelihood that commercial firms will step in to fill critical operational and infrastructure gaps.

While investors can capitalize on a surge in space industry stocks through a broad-based exchange-traded fund (ETF) like the Procure Space ETF NASDAQ: UFO, a handful of standout names could merit a targeted individual investment heading into the new year. The companies below represent established firms that have the potential to leverage their size and experience for further growth in 2026.

Rocket Lab’s Government Contracts and Neutron Rocket Set the Stage for 2026

Industry leader Rocket Lab NASDAQ: RKLB has experienced ample turbulence in its share price over the last year, but the general trajectory, especially in recent weeks, has been upward. The launch and space services name has come close to tripling year-to-date (YTD), thanks in large part to a whopping 75% surge in just the last month.

Some of this boost came from broader industry gains driven by speculation that Elon Musk's SpaceX—privately held, but one of the largest and most influential companies in the industry—is seeking an IPO in 2026.

More directly, though, Rocket Lab has noted a string of key successes in its operations, establishing it as a go-to services firm for the Japan Aerospace Exploration Agency, the U.S. Space Force, and other government partners. A late-December $816 million contract with the Space Force (Rocket Lab's largest-ever contract to date) signals the potential for expansion on this front into the new year. 

2026 could also bring major news surrounding Rocket Lab's Neutron rocket project.

Company management suggested in the latest earnings report that pad operations could begin in the first quarter, with first flights sometime thereafter. This and other positive earnings news prompted multiple analysts to reiterate Buy or Overweight ratings in November, another show of bullishness.

AST Finds Footing With Growing Revenue, Ambitious Satellite Launches Planned

Eclipsing Rocket Lab's performance so far this year, satellite broadband company AST SpaceMobile NASDAQ: ASTS has achieved an incredible 250% return in 2025.

This has understandably led some analysts to speculate that the firm is overvalued—it currently has downside potential of almost 40% according to a consensus price target of $45.66, and multiple firms have downgraded ASTS shares in the last three months.

Still, AST offered a number of positive signs in its latest earnings report. This included pro forma cash and liquidity topping $3.2 billion, which should help the company to achieve its ambitious goal of launching between 45 and 60 satellites in 2026.

Contracted commercial revenue commitments are building, with more than $1 billion in aggregate reported in the latest quarter as AST gains votes of confidence from commercial partners.

Despite falling short of analyst predictions, revenue grew roughly 13-fold year-over-year (YOY) in the last quarter, showing that AST is gaining traction.

Satellite Contract Worth Nearly $1 Billion Highlights L3Harris' Strong Fundamentals and Operations

L3Harris Technologies NYSE: LHX takes a slightly different focus compared to the companies above, providing communications systems, avionics, electronic warfare, intelligence, and other systems for defense and aerospace applications.

LHX shares have risen by a comparably modest 38.6% YTD, and analysts still see upside in the near-term.

This upside could be turbo-charged if L3Harris continues to win contracts like its latest, an infrared satellite project with the Space Development Agency worth up to $843 million that was awarded in late December.

In the latest quarter, the company reported organic growth and $22 billion of projected revenue for the full year alongside nearly $2.7 billion in free cash flow, a signal that L3Harris' fundamentals are generally strong. If the firm can maintain its momentum in these areas, it could also continue its upward share price trajectory.