SpaceX Shares Surge as Revenue Jumps 161 Percent

Strong financial results from SpaceX lifted its shares in premarket trading on Wednesday, October 21, 2026, as investors assessed the company's accelerating artificial intelligence business and a potential combination with Tesla. The aerospace company reported $14.6 billion in third-quarter revenue, up 161% from a year earlier, while its founder, Elon Musk, confirmed that both companies had established committees to examine a possible merger.

SpaceX shares rose 10.2% before the US market opened, following an approximately 8% gain in extended trading reported by CNBC. Tesla shares also advanced, gaining 2.5% in premarket trading after an earlier increase of about 1%. The proposed combination could become one of the largest corporate mergers in history.

According to figures reported by CNBC, SpaceX generated $2.8 billion in operating income and $4.4 billion in net income during the third quarter. The company had recorded a net loss of $1.05 billion in the same period a year earlier. Its revenue also exceeded the $12.72 billion consensus estimate compiled by LSEG.

SpaceX's chief financial officer, Bret Johnson, attributed the performance to satellite connectivity and expansion in artificial intelligence infrastructure.

"We delivered another strong quarter in Q3. Revenue grew an impressive 161% year-over-year, fueled by continued momentum in Connectivity and a clear inflection in our Super Intelligence business," said Bret Johnson, chief financial officer of SpaceX.

The company's AI-related business generated $7.56 billion in revenue, compared with $813 million a year earlier, representing approximately ninefold growth. That figure surpassed revenue from Starlink, SpaceX's satellite internet service, for the first time. CNBC reported that recurring satellite connectivity revenue and expanding AI infrastructure supported the results.

SpaceX also forecast revenue of $33 billion to $37 billion for the first quarter of 2027, substantially above the average analyst estimate of $22.2 billion, according to LSEG figures cited by CNBC.

During the earnings call, Musk outlined the rationale for a potential combination with Tesla, the electric vehicle manufacturer that is also developing AI technology.

"I do think there's a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, and there's a lot to be gained from cooperating," Musk said during the call.

The companies have formed special committees to discuss the possibility, but the reported developments do not establish that a merger has been agreed upon. Tesla was scheduled to release its third-quarter financial results after the US market closed on Wednesday.

SpaceX's performance also provided a data point for investors evaluating whether heavy spending on AI infrastructure can generate sufficient returns. Analysts at Truist Securities said the results supported the outlook for companies providing computing capacity to AI developers.

In a Tuesday research note, the analysts pointed to "continued pricing power and shorter payback periods" for AI cloud providers. They argued that demand for computing capacity could help these businesses offset higher financing costs.

The analysts also wrote, "Despite market concerns relating to financing for AI cloud providers this past week, we believe SpaceX's third-quarter 2026 represents the first data point during the earnings season to support the bull case for AI cloud providers," according to CNBC.

Their assessment followed indications from SpaceX that customers could rent its available computing capacity multiple times over. The analysts said demand appeared "insatiable," adding that "pricing power will more than offset higher rates." They identified CoreWeave and Nebius as companies positioned to benefit from continued demand for AI computing services.

Broader US markets entered Wednesday's session with investors focused on a busy earnings calendar. On Tuesday, the Dow Jones Industrial Average rose 1.02% to 52,495.88, while the S&P 500 gained 0.28% to 7,712.57. The Nasdaq Composite slipped 0.02% to 26,424.82, according to figures reported by Yahoo Finance.

The Dow's advance was supported by 3M, whose shares rose nearly 6% after the industrial products company exceeded earnings expectations and raised its full-year profit outlook. Netflix shares, meanwhile, fell nearly 6% in overnight trading after its financial forecast disappointed investors.

Market attention was also turning toward results from Meta Platforms, Tesla, IBM and other major companies. Meta's report was expected to provide further insight into AI spending and demand, while Tesla's earnings were due to offer additional financial information about Musk's electric vehicle business.