SpaceX reported a significant surge in revenue for the third quarter of 2026, marking its first profit since becoming a publicly traded company. The aerospace and satellite internet firm recorded $14.6 billion in revenue, a 161% increase compared with the same period a year ago, alongside a net income of $4.4 billion. This growth was largely driven by the company’s expanding artificial intelligence segment, although its space and connectivity businesses also saw gains.
The company’s capital expenditures rose sharply to $19.6 billion in the quarter, up from $6.9 billion in the prior year, with most of this investment directed toward the AI division. SpaceX’s AI revenue jumped nearly 830% to $7.6 billion, fueled in part by its February acquisition of xAI, a startup founded by CEO Elon Musk. This segment, recently rebranded as SpaceX Super Intelligence, encompasses offerings such as the chatbot Grok and the leasing of data center capacity to other AI firms. SpaceX further bolstered its AI capabilities by acquiring Cursor, an AI coding software company, for $60 billion in August.
Meanwhile, SpaceX’s space business generated $1.8 billion in revenue, reflecting a 6% increase year over year. Its connectivity unit, which includes the Starlink satellite internet service, posted revenue of $5.2 billion, up nearly 70%. As of September 30, Starlink’s consumer subscriber base stood at 13.6 million, an increase from 12 million at the end of the previous quarter.
During its first-ever video earnings call, livestreamed on the social platform X, Musk also disclosed that special committees have been formed at both SpaceX and Tesla to explore the possibility of a merger between the two companies. Musk, who serves as CEO of both firms, emphasized that these committees have not agreed on any terms and that there is no certainty a deal will occur. He clarified he is not part of the committees and any potential transaction would require shareholder approval.
SpaceX’s shares rose about 5% in after-hours trading following the earnings release, surpassing expectations from analysts surveyed by FactSet. The company debuted publicly in June with an initial offering priced at $135 per share. The stock briefly climbed above $225 before settling near $148 in recent trading, valuing SpaceX at approximately $2 trillion.
Despite the strong financial performance, the company has faced scrutiny from European regulators and U.S. lawmakers over concerns related to disruptions reported by the Ukrainian military while using SpaceX’s satellite communications networks.