SpaceX Q3 revenue rises 161% to $14.58 billion, net profit $4.4 billion on AI growth
In short
SpaceX said on Oct. 20 (US time) that third-quarter revenue rose 161% from a year earlier to $14.58 billion, above the $12.72 billion average analyst forecast. Net income was about $4.4 billion, against a loss a year earlier, and the AI business, which the company now calls Superintelligence (SI), grew to $7.56 billion in revenue.
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SpaceX said on Oct. 20 (US time) that third-quarter revenue was $14.58 billion, up 161% from a year earlier. Yonhap reported that this was well above the $12.72 billion average forecast of market analysts compiled by LSEG. Adjusted earnings per share were 35 cents, against an expected 13 cents. [ 2 , 8 ]
Net income was about $4.4 billion, against a loss of about $1.05 billion a year earlier. Operating income was $2.79 billion. Seoul Economic Daily and Bloter said the company had posted a net loss of $541 million in the previous quarter. Outlets differed on the forecast: Maeil Business and Seoul Economic Daily cited $1.88 billion, while Newsis, Chosun Ilbo and Bloter cited $1.57 billion. [ 4 , 5 , 7 , 10 , 11 , 14 ]
The AI business, which SpaceX now calls Superintelligence (SI), earned $7.56 billion in the quarter, up 830% from $813 million a year earlier, according to Maeil Business. That exceeded connectivity revenue of about $5.25 billion. SpaceX said growth came from new cloud service contracts, the Cursor acquisition and greater use of Grok. Newsis, Chosun Ilbo and Bloter said SpaceX earns AI revenue by renting data center computing capacity to developers such as Anthropic, Google and Reflection AI. Capital spending was $19.6 billion, of which more than $16.4 billion went to the AI business, and installed computing capacity reached 1.7 GW. [ 4 , 5 , 7 , 10 , 11 , 14 ]
In connectivity, which includes Starlink, revenue rose 69% to about $5.25 billion and operating income was about $2.37 billion. Starlink subscribers reached 13.6 million, above the 12.19 million analysts expected, and the number of aircraft using the service passed 3,800. Newsis and Chosun Ilbo said average monthly revenue per subscriber fell from $99 in 2023 to $69 in the third quarter as cheaper plans were introduced abroad, while Seoul Economic Daily said it rose from $66 to $69 over three months. Space segment revenue was $1.767 billion, up 6%, with an operating loss of $7 million. [ 4 , 5 , 7 , 10 , 11 , 14 ]
On the earnings call, Musk said annual recurring revenue would reach between $500 billion and $1 trillion by the end of 2027, according to Seoul Economic Daily. Chosun Ilbo reported that he said there were considerable merits to combining SpaceX and Tesla but that shareholders would have to support it. CFO Brett Johnson forecast first-quarter revenue of $33 billion to $37 billion, Bloter reported. [ 7 , 10 , 11 ]
SpaceX shares closed at $147.79 on Oct. 20, down 0.11%, and rose in after-hours trading. In Seoul, Yonhap and others reported that SpaceX-related stocks rose on Oct. 21. Yonhap reported that New York stocks also closed higher that day, with the Nasdaq up 1.1%. [ 4 , 14 , 26 , 28 , 38 , 40 , 57 ]
Why it matters
Korean outlets reported that the results lifted SpaceX-related stocks in Seoul on Oct. 21 and that US indices rose the same day. Several outlets also noted that most of the quarter's $19.6 billion in capital spending went to AI.
Key facts
- SpaceX reported third-quarter revenue of $14.58 billion, up 161% from a year earlier and above the LSEG average analyst forecast of $12.72 billion. [ 2 , 5 , 7 , 8 ]
- Net income was about $4.4 billion, compared with a loss of roughly $1.05 billion in the same quarter a year earlier. [ 4 , 7 , 10 , 31 ]
- Adjusted earnings per share were 35 cents against a market expectation of 13 cents. [ 2 , 7 , 8 ]
- Revenue of the AI business, labelled SI, was $7.56 billion, up 830%, ahead of the $5.25 billion from the connectivity business that includes Starlink. [ 4 , 7 , 14 ]
- Capital spending in the quarter was about $19.6 billion, of which about $16.4 billion went to the AI business. [ 4 , 5 , 11 , 14 ]
- Starlink subscribers reached 13.6 million, above the 12.19 million analysts expected. [ 5 , 7 , 10 ]
Confirmed by several sources
- Third-quarter revenue was $14.58 billion, up 161% year on year, above the $12.72 billion LSEG average forecast. [ 2 , 5 , 7 , 8 , 11 ]
- The AI business grew more than ninefold and overtook connectivity in revenue. [ 4 , 7 , 10 , 14 ]
- SpaceX returned to a net profit of about $4.4 billion in the quarter. [ 4 , 7 , 10 , 11 , 31 ]
- Anthropic, Google and Reflection AI rent data center computing capacity from SpaceX. [ 5 , 10 , 11 ]
- Korean SpaceX-related stocks rose on Oct. 21 after the results. [ 26 , 28 , 38 , 40 ]
Still unclear
- The net income forecast SpaceX beat. Maeil Business and Seoul Economic Daily cite an expectation of $1.88 billion; Newsis, Chosun Ilbo and Bloter cite $1.57 billion.
- How far the shares rose after the release. Outlets give after-hours gains of 3.4% (Maeil Business), about 3% (Newsis), 3.8% (CBS NoCut News) and 5.36% (Seoul Economic Daily), measured at different times.
- Whether the quarter's Starship flight was a revenue-earning mission. Maeil Business said the quarter included the first Starship mission to generate revenue, deploying 26 Starlink V3 satellites; Bloter said Starship has not begun commercial operations and that a flight last month ended hours early because of an engine problem.
- A possible SpaceX-Tesla merger. Only Chosun Ilbo reports that Bloomberg said both companies formed special committees to examine it; Musk was quoted as saying shareholders would have to support it.
What local media are saying
Timeline, local time
- Yonhap reports SpaceX's third-quarter revenue of $14.58 billion, announced on Oct. 20 US time. [ 2 ]
- By this time (Oct. 21, Korea), after-hours trading in SpaceX shares was up 3.4%, according to Maeil Business. [ 4 ]
- Yonhap reports Korean SpaceX-related stocks rising in early trading on Oct. 21. [ 26 ]
- Yonhap reports the related stocks closed strong on Oct. 21. [ 40 ]
- On Oct. 22, Yonhap reports New York stocks closed higher on Oct. 21, with the Nasdaq up 1.1%, helped by SpaceX's results. [ 57 ]