SpaceX Profit Reaches $4.4 Billion as JPMorgan Raises Share Price Target to $500

Key Facts

SpaceX reported net income of $4.4 billion in the third quarter of 2026, compared with a loss of $1.1 billion in the same period a year earlier, marking the first time the company has posted a quarterly profit as a public company. The company said in its filing that revenue rose 161% year over year to $14.6 billion. The Associated Press reported that earnings per share were 35 cents, beating Wall Street expectations. The return to profitability coincided with rapid expansion across the business, with revenue in all three segments exceeding JPMorgan’s sales estimates. After the results, the bank raised its share price target to $500 from $240 while maintaining its Overweight rating; Citi kept its Buy rating and $240 target.

SpaceX attributed revenue growth to its superintelligence segment and faster growth in its connectivity segment, broadening the business beyond satellite services and rocket launches. Superintelligence revenue was $7.560 billion in the third quarter, compared with $813 million in the same period of 2025, an annual increase of 829.9%. The company said the segment added $6.7 billion in incremental annual revenue from superintelligence solutions and infrastructure, driven by cloud computing services agreements, the acquisition of Cursor, superintelligence models and software applications including Grok Bot. According to The Associated Press, AI became the company’s largest segment by revenue during the quarter, while Starlink remained its biggest source of profit. This mix puts the growth of computing infrastructure and AI at the center of analysts’ bets on the next phase.

In connectivity, revenue was $5.248 billion, compared with $3.097 billion in the third quarter of 2025, an annual increase of 69.5%. The company said segment revenue rose 69% and operating income increased 99%, supported by growth in individual, corporate and government customers. Starlink’s individual subscriber base rose 88.9% year over year, but average revenue per user fell 16.9% as the company expanded internationally and added lower-priced plans. As of September 30, 2026, the company’s nominal computing capacity stood at 1.7 gigawatts. The figures show that expansion of the connectivity base has accompanied the buildout of greater computing capacity, two tracks tied to the company’s growth outlook.

JPMorgan analyst Doug Anmuth raised the share price target to $500 from $240, while maintaining an Overweight rating. The bank said SpaceX beat sales expectations in all three segments and that superintelligence is expected to be the main growth driver going forward. JPMorgan estimated the company’s 2027 revenue at about $254 billion and its computing capacity at about 10 gigawatts by year-end. The bank also estimated annual recurring revenue of about $400 billion by the end of 2027, compared with a range of $500 billion to $1 trillion expected by management, according to a report cited by Investing.com. The report said achieving those estimates would require executing plans to build computing capacity, securing substantial capital and continuing to capitalize on strong demand.

Citi added a 90-day positive catalyst watch, while maintaining its Buy rating and $240 price target. It said Starship’s fifteenth flight could be an important catalyst for the space industry and pave the way for rapid vehicle reuse. Citi’s identified catalysts included the possibility of continued beats and a fourth-quarter guidance increase, as well as the flight and improving computing capacity economics. It also cited faster Grok releases and potential details on power-generation solutions and a mobile strategy. Citi is watching these as future catalysts, while the company said it expects to end 2026 with computing capacity of between 2 and 3 gigawatts and add 10 gigawatts in 2027.

Capital expenditures were $19.6 billion in the third quarter, nearly three times the level a year earlier, according to The Associated Press. The company said it expects spending to rise to between $35 billion and $40 billion in the fourth quarter to fund expansion across its projects. The stock rose 7.5% in after-hours trading after results were announced on October 20. In the October 21 session, SpaceX shares climbed 7.8%, while the S&P 500 rose 0.6% and the Nasdaq gained 1.1%. The company’s shares closed at $147.49 on October 23, after management had announced the results date and a livestream to discuss them on October 20.