SpaceX stock SPCX rose 2.2% in after-hours trading on Tuesday after Elon Musk’s aerospace and artificial intelligence company reported a 161% increase in third-quarter revenue, beating analysts’ estimates on growth in its AI and satellite-internet businesses.
Revenue reached $14.58 billion in the three months ended September 30, compared with analysts’ expectations of $12.72 billion, according to LSEG data.
Net profit came in at $4.4 billion, well above estimates of $1.57 billion.
The results marked a significant turnaround from the second quarter, when SpaceX reported a net loss of $541 million on revenue of $7.81 billion.
The company’s performance reflects growth across its businesses, although its expanding AI operations and space ambitions continue to require substantial investment.
SpaceX shares have been volatile since its initial public offering in June at $135 per share.
AI business drives revenue growth
SpaceX’s AI business has become a major area of investment, with revenue generated primarily through data-centre capacity contracts rather than its own AI models.
The company rents computing capacity to developers, including Anthropic, Google and Reflection AI.
Its broader AI operations also include xAI’s Grok chatbot and the social-media platform X.
However, SpaceX’s AI models face competition from OpenAI, Anthropic and Google.
The company has also cautioned that its AI unit is experiencing substantial operating losses and will require sustained investment before it can consistently generate profits.
The results highlight the growing contribution of AI infrastructure to SpaceX’s business, alongside its established satellite and launch operations. Its ability to convert rising demand for computing capacity into sustainable profits remains an important consideration for investors.
Starlink expansion supports connectivity business
Starlink and SpaceX’s broader connectivity operations remain central to the company’s financial performance.
The satellite-internet business continues to expand its subscriber base through additional satellite launches and a wider range of services for consumers, businesses, airlines, maritime customers and government agencies.
However, expanding into less affluent international markets could put pressure on average revenue per user as SpaceX introduces lower-priced plans.
Investors are watching whether this pricing pressure affects the economics of the network as the company expands its global reach.
SpaceX is also investing heavily in coverage, network capacity, and direct-to-device mobile services.
These initiatives could broaden its addressable market but add to the costs of maintaining and expanding its infrastructure.
The company’s ability to balance subscriber growth with improving network economics will remain a key factor in assessing Starlink’s contribution to future earnings.
Starship development remains a key long-term challenge
SpaceX’s launch operations include commercial missions, government contracts and the development of Starship, its next-generation reusable rocket system.
Starship has yet to enter commercial service but is expected to support the deployment of higher-bandwidth Starlink satellites and orbital AI-computing infrastructure.
Its successful development and reliable reuse are central to Musk’s longer-term plans.
Falcon launch activity has remained robust, although revenue can vary depending on the mix of internal Starlink deployments, commercial missions and government contracts.
SpaceX has increasingly prioritised launches for its own satellite network while absorbing the costs of Starship development.
Investors are also watching for Musk’s comments on a potential merger between SpaceX and Tesla, which is scheduled to report results on Wednesday.
Despite the strong quarterly results, SpaceX faces significant execution risks as it pursues expansion across AI, connectivity and space transportation.
Its ability to manage investment costs while translating growth into sustained profitability will remain central to its longer-term outlook.
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