SpaceX stock soars on blowout earnings that see revenue surge 161% — as Musk talks Tesla merger | Latest Tech News
SpaceX shares surged in after-hours trading Tuesday after the rocket and satellite tv for pc giant reported a whopping 161% bounce in quarterly revenue — fueled by an AI business that has overtaken its Starlink web service as the company’s greatest moneymaker.
The outcomes got here as rumors of a attainable SpaceX-Tesla merger have been percolating — and Elon Musk, the CEO of both firms, said on an earnings call that the companies have shaped particular committees of unbiased administrators to focus on a attainable union “at the request of shareholders.”
The multi-billionaire, who said he can’t take part in the talks because of conflicts of curiosity, however voiced help for a deal.
SpaceX CEO Elon Musk touted the company’s booming artificial intelligence business after the rocket and satellite tv for pc giant reported a 161% surge in third-quarter revenue. AP Photo/Julia Demaree Nikhinson
“Do I think it would be a good idea? Yes,” Musk said, including that shareholders would finally have to approve it.
SpaceX raked in $14.58 billion in third-quarter gross sales, including roughly $7.6 billion from its fast-growing AI division, according to its latest outcomes.
That compares with about $5.2 billion generated by its Starlink-led connectivity business — a dramatic shift from 2025, when the division accounted for 61% of the company’s revenue.
SpaceX also swung to a internet revenue of around $4.4 billion from a $541 million loss in the earlier quarter, while adjusted earnings before curiosity, taxes, depreciation and amortization climbed to roughly $8.8 billion.
SpaceX shares jumped 4% to $154 in after-hours trading Tuesday, following a regular-session close of $147.79.
The earnings blockbuster got here 4 months after SpaceX accomplished its historic June initial public offering, which raised about $85.7 billion in internet proceeds and valued the company at roughly $1.75 trillion.
At Tuesday’s closing price, SpaceX commanded an estimated market capitalization of $2.01 trillion — making it value roughly 13 occasions as a lot as Boeing and 16 occasions as a lot as Lockheed Martin.
A SpaceX Falcon 9 rocket launch creates a “space jellyfish” impact over Florida, Tuesday, Oct. 13, 2026. / SWNS
The latest outcomes underscore how shortly SpaceX has advanced past its conventional rocket-launching business since buying xAI in February.
The company’s AI division, which incorporates the Grok chatbot, social media platform X and a quickly increasing cloud-computing operation, accounted for about 52% of third-quarter revenue.
That was up from $2.56 billion in the second quarter and just $818 million in the first three months of the yr.
Much of the explosive growth has come from leasing computing capability to outdoors prospects, remodeling AI infrastructure into the company’s fastest-growing revenue source.
SpaceX CEO Elon Musk told traders following Tuesday’s earnings release that “the constraint on deployment of superintelligence is more in power and cooling and infrastructure than it is in chips.”
Musk said the company expects to attempt to catch both the Starship booster and spacecraft during its next flight, scheduled for November. Getty Images
He likened SpaceX’s potential to construct out that infrastructure to “the New York Yankees playing in Little League,” boasting that his group might ultimately transfer sooner than all its rivals mixed.
Musk said he has been spending “often four days a week, night and day” in Memphis, the home of a huge AI hub, working to convey the company’s second supercomputer cluster online.
SpaceX beforehand disclosed $14.1 billion in contracted AI cloud gross sales, although that determine contains sure revenue already acknowledged and isn’t equal to its remaining backlog.
Starlink, meanwhile, continued to ship sturdy outcomes despite dropping its place as the company’s largest revenue generator.
Connectivity revenue climbed about 69% from a yr earlier, while working income reached roughly $2.4 billion.
A SpaceX Falcon 9 rocket lifts off carrying the Bandwagon-5 trip sharing mission from Cape Canaveral Space Force Station on Oct. 20. USA TODAY Network via GWN Connect
Starlink’s subscriber base swelled to 13.6 million, up from 12 million at the end of the second quarter.
The satellite tv for pc web service has emerged as a extremely profitable operation, producing $4.42 billion in working income on $11.39 billion in revenue last yr — an working margin approaching 39%.
Musk told traders he expects Starlink to have “about a hundred times the bandwidth of the current Starlink constellation” within roughly three years as SpaceX deploys more highly effective satellites.
He said the company’s latest Starship mission, which carried 26 Starlink satellites into orbit, delivered the equal bandwidth of 10 Falcon 9 launches.
But the company’s staggering growth has come with an equally eye-popping price tag.
SpaceX spent about $19.6 billion on capital expenditures during the third quarter, including roughly $16.4 billion devoted to AI infrastructure.
Musk said SpaceX expects to attempt to catch both the Starship booster and spacecraft during Flight 15 next month — a feat he described as “a massive technology milestone.”
“I’d say it’s more likely than not that this succeeds next flight,” the tech titan told traders, including that SpaceX has extra Starship launches deliberate through the end of the yr.
He predicted the company might start launching Starship weekly in the first half of next yr, probably accelerating to twice a week in the second half.
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