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SpaceX earnings delivered a powerful surprise for investors as the company reported a sharp increase in revenue, accelerating artificial intelligence sales, and continued Starlink subscriber growth. The results also fueled fresh speculation about a potential merger with Tesla after CEO Elon Musk said the combination could be beneficial.
SpaceX Earnings Beat Expectations as AI Revenue Surges
SpaceX reported third-quarter revenue of $14.58 billion, well above the $12.72 billion expected by analysts, according to LSEG estimates. Adjusted earnings came in at 45 cents per share, compared with the consensus estimate of 13 cents.
The company recorded $2.8 billion in operating income and $4.4 billion in net income. That represented a dramatic reversal from the same period a year earlier, when SpaceX reported a net loss of $1.05 billion.
The most striking part of the report was the performance of its artificial intelligence division, which SpaceX now refers to as “Super Intelligence.” AI revenue jumped ninefold to $7.56 billion, beating analyst expectations of $6.47 billion. The unit also generated $431 million in operating income.
SpaceX attributed the growth to new cloud services agreements, increased adoption of Grok products, and its acquisition of Cursor, an AI coding company purchased for $60 billion. The business is also renting computing capacity to major customers, including Google and Anthropic.
Starlink Growth Remains a Critical Profit Engine
Although AI has become SpaceX’s fastest-growing business, Starlink continues to provide much of the company’s underlying profitability. The satellite internet service ended the quarter with 13.6 million subscribers, up from 12 million in the previous period.
Connectivity revenue increased 69% year over year to $5.25 billion, exceeding the $4.84 billion analysts had projected. Consumer customers contributed $3.12 billion, while government and enterprise contracts generated $2.13 billion.
Average revenue per user also increased to $69 from $66. Starlink was active on more than 3,800 aircraft by the end of the quarter, including planes operated by American Airlines. SpaceX is also positioning Starlink for a broader role in mobile communications after announcing plans to acquire low-band wireless spectrum.
The connectivity segment produced $2.37 billion in operating income, nearly double the figure from a year earlier. That performance highlights why Starlink remains central to SpaceX’s financial strategy as the company spends heavily on AI infrastructure.
Elon Musk Supports Potential Tesla and SpaceX Merger
During the earnings call, Musk said a merger between Tesla and SpaceX would be a “good idea.” He added that both companies had formed special committees made up of independent directors to discuss a possible combination.
Musk described himself as a conflicted party and said he could not participate in the discussions. He also acknowledged that Tesla shareholders would face a high voting threshold, requiring approval from 50% of all outstanding shares rather than only those cast at a meeting.
The companies already have business ties. Tesla invested in xAI, while SpaceX’s AI operations have purchased Tesla Megapacks and Cybertrucks. The companies have also shared personnel and board connections, adding to investor speculation about a deeper corporate relationship.
SpaceX Faces Heavy Spending and Regulatory Pressure
The strong quarterly results came alongside significant financial and operational risks. SpaceX spent $19.6 billion on capital expenditures during the quarter, with more than $16.4 billion directed toward AI infrastructure.
The company is rapidly expanding data center capacity in the Memphis area and aims to bring 200,000 Nvidia Grace Blackwell systems online each month for the remainder of the year. Debt and finance leases had already risen to $36.8 billion in the previous quarter, up from $22 billion.
SpaceX’s launch business generated $1.77 billion in revenue, up modestly from $1.67 billion a year earlier. However, the space division reported a $7 million operating loss. The company is counting on Starship, its next-generation rocket, to improve the long-term economics of launches.
SpaceX is also facing legal scrutiny over methane-powered turbines used at its AI data centers. A federal judge allowed an NAACP lawsuit alleging Clean Air Act violations to proceed, rejecting a government effort to dismiss the case.
What the SpaceX Earnings Report Means
The latest report shows SpaceX becoming much more than a rocket company. Starlink provides a large and profitable connectivity base, while AI is emerging as the main source of future growth. At the same time, the company’s ambitious expansion requires enormous spending, advanced chips, new energy infrastructure, and access to major corporate customers.
SpaceX forecast first-quarter 2027 revenue of $33 billion to $37 billion, far above the average analyst estimate of $22.2 billion. That outlook reflects growing confidence in its computing contracts, but it also raises the stakes for execution.
What were SpaceX’s third-quarter revenue results?
SpaceX reported third-quarter revenue of $14.58 billion, surpassing the $12.72 billion analyst estimate.
How fast did SpaceX’s AI revenue grow?
AI revenue increased ninefold year over year to $7.56 billion, making artificial intelligence the company’s fastest-growing business.
How many Starlink subscribers does SpaceX have?
Starlink ended the quarter with 13.6 million subscribers, compared with 12 million in the prior period.
Are Tesla and SpaceX merging?
No merger has been announced. However, boards at both companies formed special committees to discuss a potential tie-up, and Musk said he supported the idea.
