Rocket Companies (NYSE:RKT) Posts Earnings Results, Beats Estimates By $0.01 EPS

Rocket Companies (NYSE:RKT) posted its earnings results on Thursday. The company reported $0.15 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.01, FiscalAI reports. Rocket Companies had a net margin of 11.14% and a return on equity of 5.39%. The firm had revenue of $2.57 billion during the quarter, compared to the consensus estimate of $2.58 billion. During the same quarter last year, the firm earned $0.07 EPS. The firm’s revenue for the quarter was up 37.4% on a year-over-year basis.

Here are the key takeaways from Rocket Companies’ conference call:

• Rocket grew market share and expanded profitability despite a difficult mortgage market, reporting $2.6 billion in adjusted revenue, $748 million in adjusted EBITDA, a 29% margin, and $0.15 in adjusted EPS. Purchase share approached 6.5% and refinance share reached 15.5%.
• The company highlighted continued strength in servicing, home equity, cash-out refinancing, and recapture. Servicing generated roughly $1 billion in quarterly fee income, while recapture reached record levels and helped support higher gain-on-sale margins.
• Rocket expects to complete the remaining $100 million of annualized Mr. Cooper expense synergies in the fourth quarter, one year ahead of schedule, and has identified an additional $100 million in savings for the first half of 2027. Record liquidity of $11.4 billion and net corporate leverage below one turn provide capacity for further investment or acquisitions.
• Management expects the fourth quarter to be materially weaker as mortgage rates remain elevated and refinance applications fall more than 50% year over year. Adjusted revenue guidance is $2.1 billion to $2.3 billion, and executives warned that the broader mortgage market could reach its lowest level in decades.

Rocket Companies Stock Up 7.5%

Rocket Companies stock traded up $0.89 during mid-day trading on Friday, reaching $12.81. 54,366,624 shares of the company’s stock were exchanged, compared to its average volume of 36,412,828. The company has a quick ratio of 4.85, a current ratio of 4.85 and a debt-to-equity ratio of 1.16. Rocket Companies has a twelve month low of $10.18 and a twelve month high of $24.36. The company has a market cap of $36.27 billion, a P/E ratio of 28.47, a P/E/G ratio of 3.58 and a beta of 2.23. The company has a fifty day moving average of $12.38 and a 200-day moving average of $14.76.

Insider Activity at Rocket Companies

In other Rocket Companies news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $13.11, for a total value of $2,949,750.00. Following the completion of the transaction, the insider owned 7,953,027 shares in the company, valued at $104,264,183.97. The trade was a 2.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 450,000 shares of company stock valued at $5,687,074 in the last three months. Insiders own 57.68% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts have commented on RKT shares. Wells Fargo & Company set a $13.00 price target on Rocket Companies and gave the stock an “equal weight” rating in a research note on Tuesday, October 6th. Barclays dropped their price objective on Rocket Companies from $17.00 to $15.00 and set an “overweight” rating for the company in a research note on Monday, October 5th. Keefe, Bruyette & Woods cut their price objective on Rocket Companies from $20.00 to $19.00 and set an “outperform” rating on the stock in a report on Monday, August 10th. Stephens decreased their target price on Rocket Companies from $22.50 to $20.00 and set an “overweight” rating on the stock in a research note on Friday, August 7th. Finally, Royal Bank Of Canada decreased their target price on Rocket Companies from $16.00 to $14.00 and set a “sector perform” rating on the stock in a research note on Friday. Eight research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $18.75.

Key Headlines Impacting Rocket Companies

Here are the key news stories impacting Rocket Companies this week:

• Positive Sentiment: Q3 earnings beat expectations: Rocket reported adjusted EPS of $0.15, above the $0.14 analyst consensus and more than double the $0.07 reported a year earlier. Adjusted revenue reached $2.57 billion, while total revenue was $3.28 billion. Rocket Companies Announces Third Quarter 2026 Results
• Positive Sentiment: Substantial growth in revenue and profit: Quarterly revenue increased 37.4% year over year. Rocket posted $709 million in GAAP net income and $419 million in adjusted net income, supporting the view that profitability is improving despite elevated mortgage rates. Rocket Companies Q3 earnings surprise to the upside as profitability improves
• Positive Sentiment: Management provided a sizable Q4 revenue outlook: Rocket expects fourth-quarter revenue of $2.10 billion to $2.30 billion, giving investors visibility into continued business activity. Rocket Companies Q4 revenue outlook
• Neutral Sentiment: Revenue of $2.57 billion was slightly below the roughly $2.58 billion consensus estimate, indicating that the earnings beat was driven primarily by profitability rather than stronger-than-expected sales.
• Negative Sentiment: RBC reduced its price target: Royal Bank of Canada cut its target from $16 to $14 and maintained a “sector perform” rating, signaling limited near-term upside and caution about Rocket’s valuation or operating environment. Royal Bank of Canada recommendations
• Negative Sentiment: Housing conditions remain challenging: U.S. home-sale prices declined for the first time in more than three years, while median mortgage payments remain near record levels. High borrowing costs and weak affordability could constrain purchase and mortgage-origination volumes. U.S. Home-Sale Prices Just Fell

Rocket Companies Company Profile

Rocket Companies, Inc is a Detroit-based financial technology company that operates a portfolio of consumer finance and real estate businesses. Its platform is designed to simplify the homeownership process through digital applications, automated workflows and online customer support.

The company’s principal business is Rocket Mortgage, a residential mortgage lender and servicer offering home purchase, refinance and home equity products. Its broader portfolio includes Rocket Homes, a real estate services platform; Rocket Money, a personal finance app that helps consumers manage subscriptions, budgets and bills; Rocket Loans, which provides personal loans; and Rocket Pro, which supports mortgage brokers and other partners.

Rocket Companies traces its history to 1985, when Dan Gilbert founded Rock Financial.