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SpaceX earnings: rockets built the empire, but AI is driving its future

Equities 5 minutes to read

Key takeaways

  • SpaceX's revenue jumped 161%, with artificial intelligence becoming its largest business.

  • Starlink remains the profit powerhouse, while a major acquisition accelerates SpaceX's ambitions in artificial intelligence.

  • Spending is accelerating, and a possible Tesla merger adds opportunity alongside considerable uncertainty.


When investors think of SpaceX, they picture rockets returning to Earth, satellites filling the sky and Elon Musk dreaming about Mars. But its latest earnings suggest the company's most important launch may be happening much closer to home.

On 20 October 2026, SpaceX reported third-quarter revenue of 14.6 billion USD, up 161% from a year earlier. Net profit reached 4.4 billion USD, reversing a 1.1 billion USD loss and comfortably beating analyst expectations, as compiled by Bloomberg.

The surprise? More than half of SpaceX's revenue now comes from artificial intelligence, not rockets or satellites. For investors, this changes the question. SpaceX is no longer simply a space company. It is becoming a sprawling infrastructure and technology business, with very different sources of growth, profits and risk.

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From rockets to artificial intelligence

SpaceX now has three main businesses: rockets and space services, Starlink satellite internet, and a fast-growing Super Intelligence division.

The last of these stole the show.

Super Intelligence generated 7.6 billion USD in quarterly revenue, up approximately 830% from a year earlier. The business develops AI models and software while renting powerful computing capacity to other companies.

Growth reflects new computing contracts, greater adoption of its Grok software and the acquisition of Cursor, an AI-powered coding platform.

SpaceX completed the Cursor acquisition in August at an implied equity value of 60 billion USD. The logic is interesting: rather than simply providing computing infrastructure, SpaceX increasingly wants to own the applications running on it.

Think of it as owning the electricity supply, the factory and some of the products coming off the production line.

The division also turned profitable at the operating level, earning 431 million USD. This matters because investors have become increasingly concerned about whether enormous AI investments will eventually produce real earnings.

But there is an important distinction. Revenue is growing spectacularly, while investment spending remains even larger.

Starlink pays the bills, while Starship builds the future

Beneath the AI headlines, Starlink may be SpaceX's most attractive business today.

Its satellite internet division generated 5.2 billion USD in revenue, up 69%, and 2.4 billion USD in operating profit.

Consumer subscribers reached 13.6 million, while demand from businesses and governments continued expanding.

Unlike rocket launches, which depend on individual contracts, internet subscriptions generate recurring revenue. Once the satellites are operating, each additional customer can help spread the network's enormous fixed costs.

Meanwhile, the traditional space business generated 1.8 billion USD in revenue but recorded a small operating loss.

This exposes an interesting relationship. Rockets enable Starlink to grow, Starlink generates profits, and those profits can help fund more ambitious projects.

Starship could eventually strengthen this advantage by carrying more satellites at lower cost per unit, although its economics still need to be proven.

SpaceX and Tesla: better together?

There is also a potentially much bigger development. During the earnings call, Musk was asked whether merging SpaceX with Tesla would make sense. His response was unusually direct: “Do I think it would be a good idea? Yes.”

Both companies have established independent committees to explore a possible merger, although no agreement has been reached.

The logic goes beyond combining rockets and electric cars. Tesla develops electric vehicles, robotics and energy systems, while SpaceX brings satellite connectivity, AI computing and launch infrastructure. Together, they could share technology, reduce duplicated spending and accelerate development.

At a combined market value of approximately 3.5 trillion USD, however, this would be an extraordinary transaction. Musk also cautioned that a deal is far from guaranteed and ultimately requires shareholder approval.

For investors, the important question is whether combining these businesses would create more value than keeping them separate. Bigger does not automatically mean better.

What investors can learn

  • Follow cash, not just growth: compare rising AI revenue with investment spending and actual cash generation.

  • Separate the businesses: evaluate recurring Starlink profits differently from the more uncertain AI and rocket ambitions.

  • Watch the merger terms: assess whether any Tesla combination creates value without adding excessive financial or governance risks.

The next launch matters more than the last

SpaceX's latest results reveal something more interesting than another successful rocket launch. The company is building an interconnected business where rockets support satellites, satellites generate recurring profits, and artificial intelligence offers another enormous growth opportunity.

That combination could prove powerful, particularly if the businesses reinforce one another and reduce costs over time. But rapid growth is not the same as lasting shareholder returns. With investment spending accelerating and merger discussions emerging, expectations are rising almost as quickly as revenue.

SpaceX has already demonstrated that it can send rockets into orbit and bring them safely home. Its next challenge is less spectacular, but arguably more important for investors: turning extraordinary ambition into sustainable cash flow.

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