Archive · 5 Aug 2026
SpaceX revenue doubles but AI spending overshadows first earnings results
SpaceX is a company that sends rockets and internet satellites into space.
It recently became a public company, which means regular people can buy small pieces of it, called shares.
For the first time, SpaceX shared a report about how much money it made and spent.
The company earned $7.8 billion in just three months - almost twice as much as it earned one year earlier.
Most of that money came from Starlink, its space internet service, which now has about 12 million customers.
But SpaceX also spent a giant amount of money - more than $18 billion - mainly on building computers for artificial intelligence, or AI.
Because it is spending so much, some share owners got worried, and the price of SpaceX shares went down.
The company's leader, Elon Musk, says the spending will help SpaceX grow even bigger in the future.
He believes SpaceX could earn $100 billion in a single year by the end of 2026.
SpaceX reported revenue of $7.8 billion for the quarter ended June 30, up 92% from $4.1 billion a year earlier and above the $6.83 billion Wall Street forecast.
Capital expenditure soared to more than $18 billion, with roughly $15.3-15.8 billion directed toward AI infrastructure, up from about $749 million a year earlier.
Starlink remained the main growth engine, with its global subscriber base roughly doubling to 12 million and satellite internet revenue climbing 66%.
Despite the earnings beat, shares fell up to 9% in after-hours trading; the stock trades around $109.80, more than 50% below its intraday high.
Total operating losses narrowed to $143 million from $970 million a year earlier, while AI business revenue (xAI, Grok and X) surged around 250% year over year.
The post-IPO lock-up period expires starting August 6, potentially freeing up more than $100 billion in shares for trading.
- Who
- SpaceX, led by CEO Elon Musk, with President Gwynne Shotwell and CFO Bret Johnsen
- What
- Reported its first quarterly earnings as a public company, with revenue up 92% to $7.8 billion but heavy AI infrastructure spending sending shares lower after hours
- When
- Quarter ended June 30, reported ahead of the post-IPO lock-up expiry beginning August 6
- Where
- Not explicitly stated in the articles
- Why
- To fund an aggressive AI infrastructure build-out; the more than $18 billion in capital spending spooked investors despite strong revenue growth
Management and Bullish Investors
Skeptical Investors and Analysts
Massive AI capital spending
Management and Bullish Investors
Elon Musk defended the spending, saying SpaceX is building AI compute capacity at scale faster than anyone else and that investors are underestimating the company.
Skeptical Investors and Analysts
Investors sent shares down up to 9% in after-hours trading, worried that multi-billion-dollar spending, expected to stay at similar levels, may not deliver sustainable returns while the only profitable division is Starlink.
Stock valuation and outlook
Management and Bullish Investors
Musk projected a $100 billion annualized revenue run rate by December 2026 and $1 trillion in revenue by 2030, and said investors are underestimating the firm.
Skeptical Investors and Analysts
Shares trade around $109.80, more than 50% below the intraday high; over $500 billion in market value has been lost since first trade, and the August 6 lock-up expiry could trigger more selling.
AI business model
Management and Bullish Investors
The AI division is monetizing faster than many expected, with revenue up ~250% through compute contracts with Anthropic, Alphabet and Reflection AI.
Skeptical Investors and Analysts
The AI business recorded a $1.2 billion loss and the native AI model Grok lags, with analysts suggesting SpaceX will resemble an AI infrastructure company with a satellite business rather than an AI innovation company.
- Quarterly revenue
- $7.8 billion, up 92% from $4.1 billion a year earlier
- Wall Street forecast
- $6.83 billion (beaten)
- Operating loss
- $143 million, narrowed from $970 million a year earlier
- Capital expenditure
- More than $18 billion, including ~$15.3-15.8 billion on AI infrastructure
- Starlink subscribers
- 12 million, roughly doubled year over year
- AI revenue growth
- Up ~250% year over year; AI business revenue of $2.18 billion
- IPO details
- IPO price $135; June IPO valued SpaceX at roughly $1.75 trillion
- Recent share price
- ~$109.80, down over 50% from intraday high; lock-up expiry August 6 frees over $100 billion in shares
