SpaceX’s AI Segment Revenue Reaches $7.56 Billion in Third Quarter
Key Facts
SpaceX said on October 20 that it posted net income of $4.4 billion in the third quarter of 2026, after recording a net loss of $1.1 billion in the same period a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization were $8.8 billion, according to the company’s filing with the U.S. Securities and Exchange Commission. Reuters reported that analysts estimated net income at $1.57 billion, while Axios cited a consensus estimate of $2.12 billion. Axios also said S&P Capital IQ forecast revenue of $13 billion, while Reuters estimated quarterly revenue at $12.72 billion. The stock rose 7.5% in after-hours trading following the results, the Associated Press reported.
The AI and infrastructure business stood out in the quarterly results, with Super Intelligence segment revenue reaching about $7.56 billion, compared with $813 million a year earlier. In the same period, the connectivity segment generated $5.248 billion and the space segment $1.767 billion, according to SpaceX’s filing. The company said the segment’s solutions and infrastructure added $6.7 billion in revenue compared with the previous year, driven by cloud services agreements and the acquisition of Cursor. The figures show rapid expansion in AI alongside its established connectivity and space businesses. Reuters reported, however, that the AI unit incurred substantial operating losses and that the company said it needs continued investment before the unit can generate profits consistently.
In connectivity, SpaceX said revenue rose 69% year over year, supported by greater adoption of the service by businesses and government agencies and growth in Starlink subscribers. The filing said the first revenue-generating mission using Starship launched 26 Starlink V3 satellites during the quarter. The company added that the payload provides nearly 10 times the download capacity added by a single Falcon 9 launch of Starlink satellites. Starship had not yet entered commercial service, Reuters reported, describing the vehicle’s reliability and reusability as central to the company’s long-term strategy. These factors link current revenue growth to major investments in infrastructure and future launch capabilities.
Business growth was accompanied by a sharp rise in capital spending. Capital expenditures reached $19.59 billion in the third quarter, compared with $6.88 billion a year earlier, Axios reported. The Associated Press estimated quarterly spending at $19.6 billion and said the company expects it to rise to between $35 billion and $40 billion in the fourth quarter. This trajectory comes alongside the expansion of the AI business and infrastructure, which added substantial annual revenue but, according to Reuters, requires continued funding before its profitability stabilizes. In the second quarter, the company had posted a net loss of $541 million and revenue of $7.81 billion, Reuters reported.
Five days after the results were announced, Elon Musk warned of funding pressure on cloud computing companies specializing in AI. On Sunday, October 25, he wrote that debt markets had “almost entirely closed off access to financing for any company without significant revenue independent of AI data centers,” The Motley Fool reported. He predicted that more than 200 neocloud companies would fail or merge, adding that some would survive but only a few would remain. This remains Musk’s assessment and warning about the sector, rather than an announcement that lending has stopped altogether. In Monday’s session on October 26, CoreWeave shares fell 1.6%, Nebius dropped 4% and IREN declined 1.5%, Reuters reported.
Trading data provided by EL7 show SPCX closing at $146.9 on October 26. The next operational step identified by the company concerns a Starship launch scheduled for the following month; Musk said SpaceX would try to catch the booster and spacecraft with mechanical arms as they return to the base. The move is intended to test recovery of the vehicle and its components, while Starship remains out of commercial service until then, Reuters reported. Operating it reliably and reusing it are tied to SpaceX’s long-term strategy, according to the news agency. The test comes as the company expects capital spending to rise to between $35 billion and $40 billion in the fourth quarter, the Associated Press reported.