EL7.AI
StocksMedium•21 October 2026•
4 min read

Musk sees SpaceX annual recurring revenue reaching $1 trillion by end of 2027

Key Facts

1Musk forecast annual recurring revenue would reach between $500 billion and $1 trillion by the end of 2027.
2SpaceX's total revenue reached $14,575 million in the third quarter of 2026.
3The company posted net income of $4.4 billion, compared with a loss of $1.1 billion a year earlier.
4Total capital spending reached $19,593 million in the third quarter of 2026.
5The chief financial officer forecast revenue of between $33 billion and $37 billion in the first quarter of 2027.

Elon Musk forecast SpaceX's annual recurring revenue would reach between $500 billion and $1 trillion by the end of 2027, according to a Reuters report dated October 20, 2026. Musk said the company was heading toward "annual recurring revenue of between $500 billion and $1 trillion by the end of 2027," framing his forecast as a target recurring revenue run rate at the end of the period. The projections come amid a shift in the company's business driven by demand from artificial intelligence developers to rent data center capacity, according to Reuters. SpaceX reported revenue of $14,575 million for the third quarter of 2026 in its filing with the U.S. Securities and Exchange Commission. Total revenue rose 161% from the same period a year earlier, as artificial intelligence became the company's largest segment by revenue.

The artificial intelligence segment generated revenue of $7,560 million in the third quarter of 2026, according to the official filing, exceeding revenue from both the communications and space segments. The communications segment recorded revenue of $5,248 million over the same period, ranking behind artificial intelligence in the company's revenue breakdown by business. The space segment generated revenue of $1,767 million, the lowest among the segments included in the quarterly results. Artificial intelligence revenue thus exceeded communications and space revenue combined, reflecting the scale of computing activity within SpaceX's business during the quarter. Reuters linked the shift in the company's business to renting data center capacity to artificial intelligence developers, alongside its communications and space services operations.

On profitability, SpaceX reported net income of $4.4 billion in the third quarter of 2026, according to its SEC filing. That compared with a net loss of $1.1 billion in the third quarter of 2025, marking a swing from a quarterly loss to a profit year on year. However, the nine months ended September 2026 still produced a net loss of $413 million, despite the profit recorded in its latest quarter. Net cash provided by operating activities totaled $13,097 million over the same nine months, according to the company's reported figures for its cumulative performance. The period's results thus combined positive operating cash flow with a cumulative net loss, while the quarterly comparison showed improved profitability from a year earlier.

The business expansion was accompanied by total capital spending of $19,593 million in the third quarter of 2026, according to SpaceX's official filing. The artificial intelligence segment accounted for $16,444 million of that spending over the same period, making it the largest recipient of the company's disclosed capital investment. Total capital spending exceeded quarterly revenue, while spending by the artificial intelligence segment alone also surpassed the company's total revenue for the quarter. Capital spending on artificial intelligence also exceeded the segment's own revenue, alongside the demand to rent data center capacity described by Reuters. This allocation puts computing at the forefront of SpaceX's capital investment, alongside its lead over the other segments in revenue in the quarterly results.

In its satellite internet business, Starlink had 13.6 million consumer subscribers at the end of September 2026, according to SpaceX's filing. Average monthly revenue per consumer subscriber was $69 during the third quarter of the year, among the service's performance indicators reported by the company. Starlink's subscriber base sat alongside an expanding computing business, which became larger than the communications segment by quarterly revenue, according to the company's business breakdown. SpaceX shares rose 8% in extended trading on October 20, 2026, according to Reuters' report on the results and Musk's remarks. The stock's rise followed Musk's comments about merger discussions with Tesla, remarks to which Reuters linked the share move outside the regular session.

In space operations, the next Starship test flight was expected in November, according to TechCrunch coverage published on October 20, 2026. The planned flight includes an attempt to recover the booster and the spacecraft, as part of the next operational milestone covered in its reporting on the company's space business. On the business side, the chief financial officer forecast revenue of between $33 billion and $37 billion in the first quarter of 2027, according to TechCrunch. Both ends of that range exceed revenue achieved in the third quarter of 2026, as the guidance shifts to a future financial period. The company is thus heading toward a space test in November, followed by the first quarter of 2027, for which the chief financial officer set the expected revenue range.