Business · Companies · 1 hr ago
SpaceX beats revenue and earnings estimates as Starlink and AI grow
SpaceX reported stronger-than-expected third-quarter results on Tuesday, with revenue of $14.58 billion and earnings per share of 35 cents.
The company recorded $4.4 billion in net income, compared with a $1.05 billion loss a year earlier.
Starlink subscribers reached 13.6 million, up from 12 million in the previous quarter, and connectivity revenue rose to $5.25 billion.
SpaceX’s AI business grew ninefold in revenue to $7.56 billion, while its launch business increased only slightly.
SpaceX also completed its $60 billion purchase of AI coding startup Cursor during the quarter.
The results matter because AI growth brings high computing and infrastructure costs, and investors are watching how much the company spends to expand.
Capital spending was $19.59 billion, close to but slightly below the $19.6 billion estimate, and the company’s earnings call was scheduled for 4:30 p.m.
ET.
SpaceX reported third-quarter revenue of $14.58 billion, above analyst estimates of $12.72 billion.
Net income was $4.4 billion, compared with analysts’ expected $1.57 billion.
Revenue grew 161% year over year, driven by its AI business and Starlink subscriber growth.
AI revenue rose more than ninefold to about $7.6 billion, while capital spending reached $19.59 billion.
Starlink had 13.6 million subscribers, and SpaceX shares rose in extended trading after the results.
- Who
- SpaceX, the company led by Elon Musk.
- What
- It reported third-quarter revenue and earnings above analysts’ estimates, alongside sharply higher AI revenue and capital spending.
- When
- Tuesday, October 20, 2026.
- Where
- Not stated.
- Why
- AI business growth and Starlink subscriber growth drove the increase in revenue.
This story does not have two clearly opposing sides.
SpaceX announced that it was buying 800 MHz of low-band spectrum for a planned U.S. mobile network.
The third quarter ended.
SpaceX reported its third-quarter results after the market closed.
- Third-quarter revenue
- US$14.58 billion
- Net income
- US$4.4 billion
- AI revenue
- US$7.6 billion
- Capital spending
- US$19.59 billion
- Starlink subscribers
- 13.6 million
6 sources
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What people are saying
incremental SI solutions and infrastructure revenue year-over-year, driven by cloud services agreements, the acquisition of Cursor, and our growing SI models and software applications, including Grok Bot
Possible explanations include a desire to put updated financials on record ahead of further financing arrangements or share time-sensitive operational/strategic updates — either before counterparties do or to give the market time to digest the implications ahead of the sizeable lock-up releases (1.30 billion shares two days after earnings, 329 million on 10/24, and the remaining 857 million tranche of the 180-day group thereafter). Or the explanation could be as mundane as scheduling — it's just hard to know