SpaceX jumps 9% after Musk's profit surprise
AI image In short
- SpaceX reported $14.6 billion in revenue and $4.4 billion in net income for the third quarter of 2026.
- Revenue rose 161% compared with the same quarter in 2025.
- The AI division generated $7.56 billion in revenue while infrastructure investment reached almost $19.6 billion.
- SpaceX and Tesla have formed committees to discuss a possible merger, but no agreement has been reached.
On 20 October 2026, SpaceX released figures the market could not ignore. The company reported $14.6 billion in revenue and $4.4 billion in net income for the third quarter. A year earlier, it had posted a loss of $1.1 billion. SpaceX shares, trading under the ticker SPCX, rose after the results and Elon Musk’s comments about a possible merger with Tesla. Reuters reported an 8% rise in extended trading. Other coverage described a move of around 9%, depending on the time measured.
SpaceX turned a loss into a profit in one year
SpaceX revenue rose 161% in the third quarter of 2026, from $5.58 billion to $14.58 billion. Net income reached $4.4 billion. In the same quarter of 2025, the company had lost $1.1 billion.
That is a notable change for a company long known mainly for rocket launches and satellite internet. SpaceX now also earns money from AI infrastructure and from supplying computing capacity to other businesses. The figures show that the company does much more than build rockets.
Net income is not the same as cash that can be spent without limits. SpaceX is also investing large sums in data centres, satellites, rockets and other infrastructure. The question is not only how much profit it reports, but how much it must keep spending to support that growth.
Sources: https://www.sec.gov/Archives/edgar/data/1181412/000162828026066482/spaceexplorationtechnologi.htm and https://www.reuters.com/business/media-telecom/spacex-quarterly-revenue-jumps-beats-estimates-ai-business-surges-2026-10-20/
The AI division now generates more revenue than the space segment
The biggest surprise came from AI. SpaceX reported about $7.56 billion in third quarter 2026 revenue for its Super Intelligence division. A year earlier, the figure was $813 million. In one year, the division became a much larger part of the business.
These activities include AI models, software and renting computing capacity in data centres. Companies developing AI applications need large amounts of computing power. SpaceX rents that capacity to customers and earns revenue even when those customers do not buy rocket launches or satellite services.
This shift matters for the SPCX story. The market is not valuing SpaceX only as a rocket company. It is also trying to become a major player in AI infrastructure. That makes its results dependent on more than launch numbers or new Starlink subscribers.
What does that mean? SpaceX is generating a growing share of revenue from supplying computing power for AI. That can create new income, but it also requires major investment in servers, data centres and electricity. Revenue growth alone does not tell the whole story about profitability.
Source: https://www.sec.gov/Archives/edgar/data/1181412/000162828026066482/spaceexplorationtechnologi.htm
Investment is almost as large as revenue
In the third quarter of 2026, SpaceX spent $19.59 billion on capital investment. That was more than its quarterly revenue of $14.58 billion. Most of the investment went to the AI division, including infrastructure for computing capacity.
For a technology company, investment may be necessary to provide services in the future. But the money goes out first, while returns may arrive over several years. If demand for AI capacity falls short or data centre construction becomes more expensive, the financial outcome could change.
SpaceX also said it expects capital investment of between $35 billion and $40 billion in the fourth quarter of 2026. That is the company’s expectation, not a completed expense. The scale shows how much money SpaceX is putting into expanding its AI infrastructure.
Watch out: revenue is not profit A company can report billions in revenue and still face pressure if investment, operating costs and funding needs rise quickly. SpaceX reported positive earnings in the third quarter, but its capital spending was also exceptionally high.
Starlink remains a major source of revenue
Starlink provides satellite internet to consumers, businesses, aircraft, ships and governments. In the third quarter of 2026, the service reached 13.6 million subscribers. Reuters reported that analysts had expected an average of 12.19 million.
Growth comes with a trade off. According to Reuters, average monthly revenue per subscriber fell from $99 in 2023 to $69 in the third quarter of 2026. This reflects expansion into new countries and lower priced plans. More customers do not automatically mean proportionally more revenue from each customer.
Starlink matters because it provides recurring income. Unlike a one off rocket launch, a subscriber pays monthly for access to the network. That makes the service an important pillar alongside the growing AI business and space contracts.
Musk also raised the possibility of a Tesla merger
After the results were released, Elon Musk said he thought a combination of SpaceX and Tesla could be a good idea. The two companies have formed special committees to discuss the possibility. According to Reuters, no transaction terms have been agreed, and the discussions may never lead to a deal.
Musk sees possible cooperation in AI software, chip design, robotics and connectivity. SpaceX has satellite networks and rockets, while Tesla operates in electric vehicles, energy storage and robotics. A combination would have major implications for both companies, their shareholders and how the businesses are valued.
The share price reaction followed both the earnings release and comments about a possible merger. It would therefore be inaccurate to attribute the entire move to quarterly results alone. Investors were responding to several developments at once.
A 9% share price move does not mean everyone made money
A share price percentage only tells you about your own result when you know when you bought and at what price. A 9% move is not a fixed outcome for every investor. Prices can change during the trading day, and the price after the market closes may differ from the next official opening price.
In numbers: Suppose you own €1,000 worth of shares and the price rises by 9%. Your position is worth €1,090 on paper, a difference of €90. If the price then falls by 9% from that new level, about €991.90 remains. A 9% decline does not exactly cancel out a previous 9% increase.
This example excludes transaction costs, taxes and currency movements. SpaceX reports its results in dollars. A European investor using a dollar denominated product is also exposed to changes in the exchange rate between the euro and the dollar.
SPCX still depends on expectations for the future
The quarterly results provide a concrete picture of current operations, but they do not settle every question about SpaceX’s valuation. Investors still face the cost of AI infrastructure, the development of Starship, competition in satellite internet and uncertainty about whether demand for AI services will continue to grow.
The possible Tesla merger remains uncertain as well. Discussions between committees are not an agreement, and any transaction would require further approvals. The final terms could affect shareholders in both companies.
Anyone following SPCX can ask these questions:
- What share of revenue comes from AI, Starlink and space services?
- How does investment compare with operating cash flow?
- Can the AI division keep growing while infrastructure costs rise?
- What terms might apply to a possible Tesla merger?
- How would my result change if the dollar moves against the euro?
This article is for educational and informational purposes and is not financial advice.
