SpaceX reports $14.6 billion Q3 revenue, up 161%, as AI business grows
In short
SpaceX reported third-quarter revenue of $14.6 billion, up 161% from a year earlier, driven by its AI segment and Starlink connectivity. Outlets said the results beat estimates, and CFO Bret Johnsen forecast $35 billion to $40 billion in capital spending for the current quarter. Elon Musk said on the earnings call that Tesla and SpaceX are discussing a possible merger.
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SpaceX reported third-quarter revenue of $14.6 billion on Tuesday, which the company said was growth of 161% year over year, fueled by its Super Intelligence (SI) segment and accelerated growth in Connectivity. Reuters said revenue beat estimates. ABC News reported the company earned an overall profit of $4.40 billion, against a loss of $1.05 billion a year earlier. [ 1 , 2 , 4 , 6 ]
The SI segment had revenue of $7.6 billion, up 830% year over year, according to The Verge, which quoted SpaceX attributing the growth to new cloud services agreements, the acquisition of Cursor and increased Grok adoption. TechCrunch put the segment's revenue at $7.5 billion. Connectivity revenue was $5.2 billion, with 13.6 million Starlink consumer subscribers, and Space revenue was $1.8 billion, up six percent. The Verge reported operating income of $2.4 billion in Connectivity and $431 million in SI, and a $7 million operating loss in Space. Business Insider said the AI segment brought in more revenue than Starlink and was ahead of analyst estimates of $6.3 billion. [ 2 , 3 , 4 ]
TechCrunch said the AI business generated $431 million in profit, which would have been higher without $1.2 billion in one-time stock-based compensation expenses tied to the Cursor acquisition. It also said revenue was boosted by about $1 billion in income related to Bitcoin prices and unspecified related-party income. [ 4 ]
Capital expenditures were about $19.6 billion in the quarter, of which $16.4 billion was AI-related, Business Insider reported, against analyst expectations of $16.9 billion. CFO Bret Johnsen forecast $35 billion to $40 billion in the current quarter as new compute comes online. He said new compute deployments are generating a payback of less than a year at current pricing. [ 3 , 4 ]
On a livestreamed earnings call, Musk said the constraint on deploying super intelligence is more in power, cooling and infrastructure than in chips. He said SpaceX will try to catch Starship and its booster next month, and that Tesla and SpaceX are discussing a possible merger. The New York Times said Musk confirmed SpaceX is weighing a deal with Tesla. The Verge said he also said Starlink connectivity could generate several hundred billion dollars a year. [ 2 , 3 , 4 , 11 ]
Shares rose about 4% in after-hours trading, to about $153.30, ABC News reported. Reuters said Nasdaq futures led gains on 21 October as SpaceX and Super Micro results lifted the AI trade. CNBC said SpaceX shares were up 7% on Wednesday. MarketWatch and The New York Times said the results lifted the wider AI stock rally. [ 3 , 6 , 8 , 10 , 11 , 12 ]
Why it matters
Outlets reported that the results lifted AI-related stocks and futures, with CNBC and MarketWatch tying SpaceX's results to the wider AI trade. The planned jump in capital spending and the Tesla merger talks are the points the coverage flags for what comes next.
Key facts
- SpaceX reported third-quarter revenue of $14.6 billion, which it said was growth of 161% year over year. [ 2 , 4 , 6 ]
- The Super Intelligence (SI) segment had revenue of $7.6 billion, up 830% year over year, according to The Verge; TechCrunch gave the figure as $7.5 billion. [ 2 , 4 ]
- Connectivity revenue was $5.2 billion with 13.6 million Starlink consumer subscribers; Space revenue was $1.8 billion, up six percent. [ 2 ]
- SpaceX spent about $19.6 billion on capital expenditures in the quarter, including $16.4 billion on AI-related capex, against analyst expectations of $16.9 billion, according to Business Insider. [ 3 , 4 ]
- CFO Bret Johnsen forecast capital spending of $35 billion to $40 billion in the current quarter. [ 3 , 4 ]
- Musk said SpaceX will try to catch Starship and its booster next month and that Tesla and SpaceX are discussing a possible merger. [ 2 , 11 ]
- Shares rose about 4% in after-hours trading after the release, and CNBC said they were up 7% on Wednesday. [ 3 , 6 , 12 ]
Confirmed by several sources
- SpaceX reported third-quarter revenue of $14.6 billion, up 161% from a year earlier. [ 2 , 4 , 6 ]
- The AI business was the main driver of the revenue growth, helped by the Cursor acquisition and Grok. [ 2 , 3 , 4 ]
- SpaceX plans $35 billion to $40 billion of capital spending in the fourth quarter, according to CFO Bret Johnsen. [ 3 , 4 ]
- Musk said the constraint on deploying super intelligence is more in power, cooling and infrastructure than in chips. [ 3 , 4 , 12 ]
- Musk said on the call that SpaceX and Tesla are discussing a possible merger. [ 2 , 11 , 12 ]
- SpaceX shares rose after the results were released. [ 3 , 6 , 12 ]
- This was SpaceX's second earnings report since its IPO in June. [ 2 , 6 ]
Still unclear
- The size of the AI segment's revenue. The Verge and Business Insider give $7.6 billion; TechCrunch gives $7.5 billion.
- Overall profit of $4.40 billion in the quarter. Only ABC News gives this figure; The Verge and TechCrunch report segment-level operating income and profit instead.
- Terms or status of a Tesla-SpaceX merger. The documents say only that the companies are discussing or weighing a deal; no terms are given.
- How the revenue growth is described. A Reuters German-language headline says revenue doubled, while The Verge and ABC News report 161% growth.
What local media are saying
Timeline, local time
- Reuters published its first report that SpaceX quarterly revenue jumped and beat estimates. [ 1 ]
- The Verge reported the $14.6 billion revenue and segment results. [ 2 ]
- ABC News reported 161% revenue growth and after-hours share gains of nearly 4%. [ 6 ]
- Reuters reported on 21 October that Nasdaq futures led gains as SpaceX results lifted the AI trade. [ 10 ]
- CNBC said SpaceX shares were up 7% on Wednesday. [ 12 ]