SpaceX, the aerospace and technology company led by Elon Musk, reported a significant turnaround in its financial performance for the third quarter of 2026, posting its first profit since going public in June. The company recorded $14.5 billion in revenue and a net profit of $4.4 billion between July and September, reversing earlier losses and exceeding analyst expectations.
This quarter’s revenue more than doubled compared to the same period last year, when SpaceX posted $5.6 billion in sales and a loss of $1.05 billion. The earnings also surpassed Wall Street projections, which anticipated $13 billion in revenue and earnings per share of 16 cents; SpaceX reported earnings of 37 cents per share. Following the announcement, SpaceX’s stock rose more than 5 percent in after-hours trading, trading above its initial public offering price of $135.
The surge in revenue was driven primarily by SpaceX’s fast-growing artificial intelligence (AI) business. The company’s AI division, which includes the Grok chatbot and associated data center operations, generated $7.6 billion in the quarter—an increase from just $813 million a year earlier. This growth was attributed to new contracts leasing computing power and the August acquisition of Cursor, an AI-powered coding service.
SpaceX’s chief financial officer, Bret Johnsen, noted that the company’s capital expenditures had risen sharply to $19.6 billion for the quarter, nearly triple the $6.9 billion spent in the previous year. Johnsen also indicated that spending in the coming quarter could reach between $35 billion and $40 billion. Analysts have cautioned that such large expenditures continue to attract market scrutiny amid the company’s ambitious expansion plans.
Starlink, SpaceX’s satellite internet service, also experienced substantial growth, increasing revenue to $5.2 billion from $3.1 billion in the same period last year. The service now boasts 13.6 million consumer subscribers alongside hundreds of thousands of enterprise customers. In contrast, SpaceX’s core space business, covering rocket launches and related operations, grew more modestly, with revenue rising 6 percent to $1.8 billion. The company is continuing its development of a new spaceport in Louisiana, expected to become operational in 2029.
Elon Musk reiterated his optimistic outlook for SpaceX’s future revenue, forecasting annual recurring revenue could reach between $500 billion and $1 trillion by the end of 2027, a significant increase from the roughly $27 billion projected for 2026. Musk also revealed that SpaceX and Tesla, his electric vehicle company, have established committees to explore a possible merger, though he has not been directly involved in these discussions due to potential conflicts of interest. He emphasized that any such merger would require shareholder approval.
Industry analysts have recognized SpaceX’s potential to distinguish itself in the AI sector, particularly through its long-term ambitions to establish data centers in space. However, they also caution that these ventures face considerable technical and practical challenges, and require sustained high levels of investment.
SpaceX’s profitability this quarter marks a pivotal moment for the company, indicating progress toward fulfilling Elon Musk’s expansive vision that includes both commercial space exploration and rapidly scaling AI technologies.