SpaceX revenue reaches $14,575 million as Netflix cuts advertising forecast
Key Facts
SpaceX reported revenue of $14,575 million in the third quarter of 2026, according to its filing with the U.S. Securities and Exchange Commission, with artificial intelligence leading the group's segments by revenue. The company posted net income of $4,404 million for the same period, while capital expenditure exceeded its total quarterly revenue. Netflix, meanwhile, reported third-quarter revenue of $12,874 million in its letter to shareholders. The company posted quarterly net income of $3,664 million, while earnings per share exceeded analysts' average forecast. Netflix's results came with a reduction in its annual advertising revenue forecast after the rollout of some advertising product capabilities took longer than the company had expected.
SpaceX's Superintelligence segment generated revenue of $7,560 million in the third quarter, ahead of the Connectivity segment in quarterly revenue. The company linked growth in its artificial intelligence business to cloud services agreements, the acquisition of Cursor and increased use of Grok. The drivers identified in the filing thus included service agreements, an acquisition and increased use of Grok within the same business. On investment, the group's capital expenditure reached $19,593 million during the quarter, exceeding revenue generated in the same period. The Superintelligence segment accounted for the largest share of that spending, at $16,444 million, an amount that also exceeded the segment's quarterly revenue.
In Connectivity, SpaceX reported quarterly revenue of $5,248 million, according to figures in its U.S. filing for the third quarter of 2026. The segment generated operating income of $2,367 million during the period, alongside its contribution to group revenue. That operating income came from Connectivity, while Superintelligence ranked first in revenue between the two segments. In terms of its customer base, Starlink's consumer subscribers reached 13.6 million by the end of the third quarter. That figure represents consumer service subscribers at the end of the period, while Connectivity revenue and operating income cover the segment's business over the entire quarter.
Netflix raised its operating margin in the third quarter of 2026 to 34.6%, according to its letter to shareholders on the quarterly results. The company compared that level with a margin of 28.2% in the corresponding quarter of 2025, showing a year-on-year improvement in operating profitability. Reuters reported earnings per share of 87 cents, exceeding analysts' average forecast of 82 cents compiled by the London Stock Exchange Group. On subscription performance, Netflix said its cancellation rate improved compared with the same period a year earlier. The company added in its letter that the rate was "better than expected," alongside the year-on-year improvement in subscriber retention.
Netflix cut its estimate for advertising revenue in 2026 to about $2.7 billion from a previous forecast of about $3 billion for the same year. The company attributed the revision to the pace of the rollout of some advertising product capabilities, according to Reuters' account of its explanation for the forecast cut. It said "the rollout of some advertising product capabilities proceeded slightly more slowly than expected," identifying the reason for revising the revenue estimate. The revision concerns expected advertising revenue for the full year, while the reported revenue and profit figures cover third-quarter performance. The company thus lowered its advertising estimates despite earnings per share beating analysts' forecasts and an improvement in operating margin compared with the corresponding quarter a year earlier.
Looking ahead, Netflix expects revenue of $13,442 million in the fourth quarter of 2026, according to guidance in its shareholder letter. That estimate exceeds third-quarter revenue, while the company expects full-year revenue of $51.1 billion. At SpaceX, upcoming steps include a spectrum licensing deal supporting its Starlink Mobile strategy, according to the company's filing. It said it expects to complete the deal "in the first half of 2027," specifying the targeted closing timeframe. Completion within that timeframe remains subject to regulatory approvals and the satisfaction of closing conditions, according to the terms SpaceX outlined in the filing.