SpaceX Revenue Surges 161% to $14.6B, Sending Wall Street Targets Skyward

SpaceX generated $14.6 billion in revenue during the third quarter of 2026, a staggering 161 percent jump compared to the same period last year. This figure significantly outpaced the consensus estimate of approximately $12.7 billion, signaling a period of explosive growth for the company. The strong financial performance sent shares sharply higher in after-hours trading and continued into premarket sessions on Tuesday.

The financial turnaround was equally dramatic on the bottom line. The company reported a net profit of $4.4 billion, a significant reversal from the net loss recorded in the prior year. Adjusted EBITDA reached $8.8 billion, further underscoring the operational efficiency and scale achieved in just twelve months.

The surge in revenue was largely driven by the Super Intelligence division, which now serves as the largest revenue contributor. This AI-focused segment generated roughly $7.6 billion, representing a nearly 830 percent year-over-year increase. The Connectivity segment, primarily Starlink, also performed well, delivering $5.2 billion in revenue as subscriber additions pushed the total consumer base to 13.6 million users.

During the earnings call, CEO Elon Musk and CFO Bret Johnsen provided guidance that far exceeded analyst expectations. They outlined first-quarter 2027 revenue targets ranging from $33 billion to $37 billion, a substantial leap from the roughly $22 billion that Wall Street had modeled. To support this growth, the company plans to spend between $35 billion and $40 billion on capital expenditures in the fourth quarter, with a specific focus on AI compute infrastructure in Memphis and Southaven.

Management indicated they aim to have 2.5 to 3 gigawatts of nameplate compute capacity online by the end of the year, with a pathway to over 13 gigawatts by the end of 2027. Musk noted that demand from hyperscalers and other customers remains relentless, with compute pricing supporting payback periods of less than a year and potentially as short as six months.

The bullish outlook prompted a rapid series of price target increases from Wall Street analysts. JPMorgan more than doubled its target to $500 from $240 while maintaining an Overweight rating. Cantor Fitzgerald raised its target to $345 from $246, and Barclays increased its to $300 from $254. Citi lifted its target to $240 from $200, while UBS moved to $230 from $210.

Other institutions followed suit, with TD Cowen raising its target to $224 from $200. Morgan Stanley held its Overweight rating with a $300 target. Wells Fargo adjusted its target to $274 from $214, and Clear Street moved to $248 from $217. Analysts broadly cited the strong quarterly results, accelerating AI compute expansion, Starlink progress, and recent Starship milestones as the primary drivers for these higher long-term growth projections.

Additional highlights from the call included Starship’s recent orbital success and the deployment of V3 satellites, along with rapid adoption of the Grok Bot and plans for spectrum expansion. The company also mentioned the formation of special committees to explore a possible combination with Tesla. As a result of these developments, SpaceX shares, which closed at $147.79 on Monday, jumped roughly 8 percent in early premarket trading on Tuesday as investors digested the news.