SpaceX reported a net income of $4.4 billion in the third quarter of 2026, marking its first quarterly profit since going public in June. The company’s revenue surged 161% year-over-year to $14.58 billion, driven largely by its artificial intelligence (AI) business. Shares jumped 9% to $161 in premarket trading on October 21 following the earnings announcement, according to livemint.com.
The revenue growth was fueled by a nearly tenfold increase in AI-related income, which reached $7.56 billion. This was primarily due to renting out data center capacity to AI developers including Anthropic, Alphabet’s Google, and Reflection AI, rather than from SpaceX’s own AI models. Despite the profit, SpaceX’s capital expenditure almost tripled to $19.6 billion as it invested heavily in computing infrastructure. Elon Musk also mentioned the company’s target of achieving $1 trillion in annual recurring revenue by 2028.
SpaceX’s results highlight the growing importance of AI infrastructure in the technology sector. The company’s AI revenue growth outpaces many competitors, reflecting strong demand for data center capacity amid the AI boom. Additionally, SpaceX’s satellite internet unit, Starlink, expanded its subscriber base to 13.6 million, surpassing analyst expectations of 12.19 million. The earnings underscore SpaceX’s diversification beyond rocket manufacturing into AI and satellite internet services.
During the earnings call, Musk expressed support for a potential merger between Tesla and SpaceX, calling it a good idea with significant potential. Starlink’s subscriber growth and the company’s AI revenue gains position SpaceX as a major player in multiple high-growth technology markets this quarter.