SpaceX Profit Hits $4.4 Billion as AI Revenue Surges 830%

SpaceX profit reached $4.4 billion in the third quarter on $14.6 billion in revenue, reported Tuesday, driven by an artificial intelligence acquisition and rapid Starlink growth that pushed earnings beyond Wall Street expectations.

The Elon Musk-led company more than doubled revenue from $5.6 billion a year earlier, according to its earnings report filed with the U.S. Securities and Exchange Commission. Net income reached $4.4 billion, compared with a $1.1 billion loss a year earlier.

Analysts had expected revenue of $12.7 billion, according to Bloomberg consensus estimates. Adjusted earnings before interest, taxes, depreciation and amortization reached $8.8 billion, exceeding the $6.59 billion analysts had forecast.

SpaceX shares closed Tuesday at $147.79, down 0.11%, before rising about 2% in after-hours trading following the results. The earnings report marks a significant turnaround after the company’s first quarterly results as a public company showed a $541 million loss in the second quarter.

AI Business Drives SpaceX Revenue Growth

SpaceX’s artificial intelligence division generated $7.6 billion in quarterly revenue after the company acquired Musk’s xAI business in February. The division, recently renamed SpaceX Super Intelligence, includes revenue from the Grok chatbot and data center capacity leased to other AI companies.

The reported 830% surge in AI revenue divided the largest contributor to quarterly sales. Its performance highlights SpaceX’s growing focus on AI infrastructure alongside its established launch and satellite internet operations.

However, the company also increased spending substantially as it expanded its computing and space infrastructure. Capital expenditures reached $19.6 billion in the third quarter, up from $6.9 billion in the same period last year.

The spending followed $18.4 billion in capital expenditures during the second quarter, about 80% of which targeted AI, according to the company’s earlier filing. The investments have raised questions among investors about whether future revenue growth will justify the substantial costs.

Starlink Subscribers Boost Connectivity Revenue

SpaceX’s connectivity business, which includes its Starlink satellite internet service, generated $5.2 billion in third-quarter revenue, up nearly 70% from a year earlier. Starlink’s subscriber base increased 88.9% to 13.6 million, reflecting growing demand for satellite-based internet services.

Traditional space operations, including rocket launches and related services, generated $1.8 billion in revenue, up 6% year over year. The results show that connectivity and AI now contribute substantially to a business historically associated with space transportation.

SpaceX went public June 12, pricing 638.9 million Class A shares at $135 each and raising approximately $85.7 billion. The initial public offering valued the company at $1.77 trillion, making it the largest IPO on record.

Shares initially climbed above $225 before falling below their offering price in August. Analysts maintained generally positive outlooks ahead of the latest earnings report, with Mizuho setting a $200 price target, RBC Capital Markets $225, and Cantor Fitzgerald $246, according to CNBC.

Starlink Restrictions Raise Strategic Concerns

SpaceX also faces scrutiny over restrictions affecting Starlink services used by Ukrainian forces. The Wall Street Journal reported that Musk ordered a slowdown of a military-grade version of the service, citing U.S. officials and people familiar with the matter.

The reported restrictions reduced connection speeds for some Ukrainian equipment, potentially limiting the effectiveness of certain military drones. The report also said Musk and President Donald Trump discussed the decision around the time the restrictions became public.

The developments highlight the strategic importance of Starlink’s satellite network, which provides connectivity in areas where conventional infrastructure may be limited. They also place additional attention on how SpaceX manages access to technology used by governments and military forces.

SpaceX’s latest results demonstrate strong growth across AI and satellite connectivity, while its rising capital spending and the strategic role of Starlink remain important considerations for investors.