SpaceX Revenue Jumps 161 Percent as AI Business Expands

SpaceX reported a sharp increase in third-quarter revenue on October 20, 2026, as demand for artificial intelligence computing services boosted its financial performance. The company recorded $14.58 billion in revenue and $4.4 billion in net income, surpassing analyst expectations, while CEO Elon Musk outlined plans to expand computing capacity substantially in 2027.

According to data compiled by LSEG, quarterly revenue rose 161% from a year earlier, exceeding the $12.72 billion analysts had anticipated. Net income compared with a $1.1 billion loss in the same period a year earlier, while earnings reached 45 cents per share, above the 13-cent average estimate calculated by IBES.

SpaceX shares gained in extended trading following the earnings announcement. The company's results reflected rapid growth in its artificial intelligence operations, which have become a major source of revenue alongside its satellite internet and launch businesses.

According to the company's earnings figures, its Super Intelligence division generated approximately $7.6 billion in revenue, more than nine times its year-earlier level. The division accounted for more than half of quarterly sales for the first time, with much of its income coming from renting computing capacity to developers rather than selling its own AI software.

Reuters reported that SpaceX supplies computing resources to customers including Anthropic, Alphabet's Google and Reflection AI. Its AI operations also encompass Grok, the company's large language model, and the social media platform X.

Musk described the company's position across its businesses during the investor call.

"We are in an inflection moment for SpaceX across launch, connectivity and superintelligence," said Elon Musk, CEO of SpaceX.

The company is also preparing to expand its AI services to more enterprise customers. Musk highlighted Grok's rapid adoption and discussed its potential role in driving demand for computing resources.

"We're seeing the fastest growth of a product that I've ever seen in my life. I've never seen anything grow this fast," said Elon Musk, CEO of SpaceX.

Musk added that Grok would soon be widely rolled out to enterprise customers and could become a major user of the company's computing infrastructure. However, SpaceX's AI business continues to require substantial investment, and the company has cautioned that sustained spending will be necessary before the division can consistently generate profits.

Capital expenditures reached approximately $19.6 billion during the quarter, with $16.4 billion directed toward the Super Intelligence division, according to the earnings figures. Reuters reported that SpaceX expects spending to remain near that level in the near term as it develops additional computing infrastructure.

At the end of the third quarter, SpaceX had approximately 1.7 gigawatts of AI computing capacity. Musk expects total capacity to reach between 2.5 and 3 gigawatts by the end of 2026, with another 10 gigawatts potentially coming online during 2027. He also identified a possibility of reaching 20 gigawatts by the end of next year.

Musk projected that SpaceX's annual recurring revenue run rate could reach between $500 billion and $1 trillion by the end of 2027. That outlook represents a substantial increase from the company's third-quarter revenue, which would equal approximately $58.3 billion on a simple annualized basis.

SpaceX's satellite internet business continues to expand as well. Starlink reached 13.6 million subscribers in the third quarter, adding 1.6 million from the previous quarter and exceeding the 12.19 million expected by analysts, according to Reuters.

Average monthly revenue per Starlink subscriber stood at $69 in the third quarter, down from $99 in 2023. Reuters attributed the decline to international expansion and lower-priced service plans, while noting that the company continues to invest in network coverage, capacity and direct-to-device mobile services.

SpaceX's broader infrastructure strategy also depends on Starship, its next-generation reusable rocket system. The vehicle is expected to support the deployment of higher-bandwidth Starlink satellites and orbital AI computing infrastructure, although it has not yet entered commercial service.

The company therefore faces significant spending requirements across AI infrastructure, satellite connectivity and rocket development as it pursues its expansion targets. Its third-quarter results exceeded analyst expectations, but the scale and timing of its 2027 computing and recurring revenue projections remain forward-looking targets rather than achieved results.