The space sector is having a moment. Several space-focused companies have rocketed out of the gate in 2026, posting double-digit gains that have investors wondering if this is the year the industry finally lives up to its sky-high promise.

A combination of friendly policy signals from the Trump administration, genuine technical progress, and whispers about a potential SpaceX IPO have created a tailwind strong enough to lift multiple players in the sector. Here's what's happening across the space economy.

Firefly Aerospace Takes the Lead

Firefly Aerospace, Inc. (FLY) is the year's early winner, with shares climbing 34% in 2026. That's an impressive bounce considering the stock is still trading well below its $45 debut price. Investors are focused on two major catalysts: the upcoming Blue Ghost Mission 2 lunar landing and development of the company's medium-lift Eclipse rocket.

The stock has become a high-beta favorite among traders who see value in its recent inclusion in the Russell 2000 index and its expanding defense contract backlog. It's the kind of setup that attracts momentum players betting on a turnaround story.

Planet Labs Scores Big Contract

Planet Labs PBC (PL) shares have jumped 27% to start the year, getting a boost from Monday's announcement of a multi-year satellite services deal with Sweden. The agreement, valued in the low nine figures, will provide satellites, space-based data, and intelligence solutions to the Swedish government.

It's exactly the type of government contract that validates the business model for commercial Earth observation companies and shows there's real demand for what they're selling.

AST SpaceMobile Hits Turbulence

AST SpaceMobile, Inc. (ASTS) remains a polarizing stock, up 28% year-to-date but facing fresh skepticism from Wall Street. Shares are consolidating near all-time highs around $91 to $100, following a massive 260% rally throughout 2025.

The problem? Valuation. Scotiabank downgraded the stock to Sector Underperform on Wednesday, citing extreme valuation multiples. AST has been a retail favorite for months, but institutional analysts are starting to pump the brakes on what they see as an overheated name.

Rocket Lab Approaches Price Target

Rocket Lab Corp. (RKLB) has gained more than 20% in 2026, building on momentum that saw the stock surge over 65% in a single month during late 2025. Shares are now trading around $85 and approaching the Street-high price target of $90 set by Needham in December.

Investors are getting excited about the 2026 debut of Rocket Lab's medium-lift Neutron rocket and the execution of its $816 million Space Development Agency satellite contract. The company is transitioning from small-launch specialist to a more diversified space contractor, and the market is buying it.

Intuitive Machines Awaits NASA Decision

Intuitive Machines, Inc. (LUNR) shares are up 17% year-to-date, trading above $19 on speculation around the imminent $4.6 billion NASA lunar terrain vehicle contract award. That's a massive opportunity, and investors are positioning ahead of the decision.

Canaccord and B. Riley recently raised their price targets to the $20 to $22 range, though Stifel downgraded the stock to Hold due to political uncertainty in the award process. Beyond the contract drama, the company is preparing for its IM-3 mission to the Reiner Gamma magnetic anomaly, scheduled for mid-2026.

Starfighters Space Gets Hypersonic Boost

Starfighters Space (FJET) shares have posted a 20% gain to start the year, driven by the successful January 5 completion of supersonic flight tests for GE Aerospace (GE). President Donald Trump's December executive order on space superiority, which fast-tracks commercial hypersonic testing, has created additional momentum for the company.

It's a niche player, but one that's benefiting from renewed government focus on hypersonic capabilities and commercial testing infrastructure.

Virgin Galactic Struggles to Launch

Not everyone is participating in the rally. Virgin Galactic Holdings, Inc. (SPCE) has had a sluggish start to 2026, with shares down about 1% year-to-date. Investors are waiting to see if the company can meet its 2026 target for scaled commercial service, especially as Morgan Stanley and Susquehanna maintain cautious Underweight and Neutral ratings.

Virgin Galactic has been promising scaled operations for years now, and patience is wearing thin. The company needs to show execution, not just vision, to win back investor confidence.