Image Source: Yahoo Finance
SPCX delivered a powerful third-quarter earnings surprise, beating Wall Street expectations on revenue, earnings, and adjusted EBITDA. SpaceX reported its results after the market closed on Tuesday, October 20, 2026, sending shares sharply higher in early Wednesday trading.
The company posted revenue of $14.58 billion, well above the $12.7 billion expected by the Bloomberg consensus. Earnings per share came in at $0.35, more than double the projected $0.15. Adjusted EBITDA reached $8.81 billion, compared with an estimate of $6.59 billion.
SPCX Earnings Beat Expectations Across Key Metrics
The quarterly performance gave investors several reasons to celebrate. Alongside its strong top-line growth, SpaceX reported capital expenditures of $19.59 billion, essentially in line with the $19.6 billion forecast. Spending tied specifically to artificial intelligence came in at $16.44 billion, below the expected $16.9 billion.
That modest undershoot was particularly important for the market. SpaceX has been investing aggressively in computing infrastructure, data centers, and next-generation AI systems. Investors have increasingly focused on whether those massive costs can translate into profitable, recurring revenue.
- Revenue: $14.58 billion versus $12.7 billion expected
- EPS: $0.35 versus $0.15 expected
- Adjusted EBITDA: $8.81 billion versus $6.59 billion expected
- Total capital expenditures: $19.59 billion
- AI capital expenditures: $16.44 billion
Following the release, SPCX shares rose more than 2% in after-hours trading and climbed approximately 9% during Wednesday premarket activity. The stock later appeared among the market’s most actively traded names, reflecting heightened interest from investors and traders.
Starlink Growth Strengthens SpaceX’s Core Business
Starlink remained one of the most important contributors to SpaceX’s expansion. President Gwynne Shotwell said the company ended the quarter active in 174 markets, including newly launched services in Vietnam and Uganda.
Starlink added 1.6 million consumers during the quarter, bringing its global broadband consumer subscriber base to just under 14 million. Earlier updates placed the subscriber total at approximately 13.6 million, while connectivity revenue reached $5.2 billion.
Shotwell described the quarter as another standout period for the consumer, enterprise, and government businesses. The figures suggest that satellite internet is becoming a larger and more dependable source of revenue, helping SpaceX balance the high costs of rocket development and AI infrastructure.
AI Compute Emerges as a Critical Growth Engine
SpaceX CFO Bret Johnsen said revenue from solutions and infrastructure reached approximately $7 billion during the quarter. That figure included $608 million contributed by the acquisition of Cursor, which closed around the middle of the quarter.
Even excluding Cursor, the business grew 192% sequentially, largely because of newly activated cloud services agreements. Johnsen said demand for AI computing from laboratories and other companies remained exceptionally strong.
He added that new computing deployments are currently generating a payback period of less than one year. Pricing was tracking slightly above the high end of a range of $30 to $50 per watt, highlighting the potential profitability of SpaceX’s infrastructure strategy.
Elon Musk has previously discussed ambitious targets for the company’s computing capacity. Analysts cited in the report said deployment could exceed 2 gigawatts by the end of 2026 and potentially reach between 5 and 10 gigawatts by the end of 2027.
Elon Musk Revives Tesla Merger Speculation
One of the most closely watched moments from the earnings call involved a possible merger between SpaceX and Tesla. Musk said both companies had formed special committees of independent directors to discuss the idea at the request of shareholders.
Because Musk is a conflicted party, he said he cannot participate in the committees’ discussions. However, he also offered a clear personal view: “Do I think it would be a good idea? Yes.”
Musk emphasized that a merger is not certain, but the comments immediately renewed speculation about a broader technology and transportation conglomerate. Cathie Wood’s Ark Invest has suggested that a combined company could generate enormous sales and operating profits by 2031, although those projections remain highly optimistic.
What the SPCX Results Mean for Investors
The latest SPCX report strengthens the case that SpaceX is becoming more than a launch and satellite communications company. Starlink is expanding internationally, while AI infrastructure is emerging as a potentially lucrative new division.
Still, the company faces significant challenges. AI computing requires extraordinary capital investment, and Starship development carries technical and execution risks. Musk said the upcoming Starship Mission 15 will attempt to catch both the spacecraft and its booster, while warning that success is not guaranteed on the first attempts.
For now, investors appear encouraged by the earnings beat, lower-than-expected AI spending, and rapid growth in infrastructure revenue. The next major questions will center on computing capacity, Starlink profitability, Starship milestones, and whether Tesla merger discussions progress beyond preliminary talks.
What did SPCX report in third-quarter revenue?
SpaceX reported third-quarter revenue of $14.58 billion, exceeding the Bloomberg consensus estimate of $12.7 billion.
Why did SPCX shares rise after earnings?
Shares gained after SpaceX beat expectations for revenue, EPS, and adjusted EBITDA. Capital spending, including AI spending, also came in slightly below forecasts.
How fast is Starlink growing?
Starlink added 1.6 million consumers during the quarter and reached nearly 14 million global broadband consumer subscribers across 174 active markets.
Is SpaceX merging with Tesla?
No merger has been confirmed. Musk said independent committees at both companies are discussing the idea, but he stressed that a tie-up is not certain.
