The 5 Most Important Numbers From SpaceX’s Earnings

Source The Motley Fool

Key Points

  • SpaceX's third-quarter revenue grew 161% to $14.6 billion, beating analysts' expectations.

  • SpaceX's AI segment is now larger than Starlink, although not as profitable.

  • Heavy spending on computing capacity means SpaceX is still burning cash, but it has a strong balance sheet to fund it.

  • 10 stocks we like better than Space Exploration Technologies ›

SpaceX (NASDAQ:SPCX) reported its third-quarter earnings on Oct. 20, and the results beat analyst expectations throughout the business. SpaceX produced revenue, earnings, and adjusted EBITDA that handily exceeded what analysts had been looking for, but that doesn't come close to telling the full story.

With that in mind, here are five numbers from SpaceX's earnings that investors should pay attention to.

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

1. Revenue nearly doubled sequentially

Not only did SpaceX produce $14.6 billion in revenue, which came in well ahead of expectations, but this was nearly double what the company reported just three months prior. Much of this can be attributed to the company's AI compute deals taking effect. Plus, growth is starting to show up on the bottom line, with $2.8 billion in operating income versus a $273 million loss a year ago.

Rocket taking off at the launchpad.

Image source: SpaceX.

2. AI was more than half of the revenue

SpaceX's AI business (now known as the Super Intelligence segment) generated $7.6 billion in revenue during the third quarter, more than half of the company's total. This includes the Grok AI models, the recently acquired Cursor coding company, and the company's cloud computing services. For context, Cursor contributed about $600 million to the total revenue, so most of it came from the existing AI business.

Starlink ended the quarter with 13.6 million consumer subscribers, up 89% from a year ago. 1.6 million of them were added in the third quarter alone. Although average revenue per customer was $69 per month, down from $83 a year ago, this was by design, as the company is growing in lower-priced international markets and offering cheaper plans.

Starlink is the most profitable part of SpaceX's business, earning $2.4 billion in operating income on $5.2 billion in revenue, a stellar 45% operating margin.

4. Compute capacity

At the end of the second quarter, SpaceX reported 1.4 gigawatts of compute capacity. Just three months later, it has surpassed 1.7 gigawatts, putting the company on track to exceed 2 GW by the end of the year. Based on the midpoint of its pricing range, 1 GW of new capacity would be worth about $40 billion in annual revenue, so if this build-out stays on track, it could be a massive growth driver.

5. Capex is growing

It shouldn't come as too much of a surprise, but building gigawatts of compute capacity is expensive. SpaceX spent $19.6 billion on capex in the third quarter, $16.4 billion of which was spent on AI computing. So far in 2026, SpaceX's capital spending exceeded operating cash flow by about $35 billion.

To be sure, with about $90 billion in cash and securities on its balance sheet and less than $40 billion in debt, the company is in an excellent financial position to afford the build-out. But with CEO Elon Musk previously stating that the company should be closer to 10 GW than 5 GW by the end of 2027, the capex numbers could get significantly larger.

The bottom line

By virtually all metrics, this was an excellent quarter for SpaceX. The business is growing much faster than analysts expected, Starlink is turning into a cash machine, and the AI segment's revenue is growing rapidly. If the company's massive AI spending continues to pay off, SpaceX could continue to grow its top line rapidly for years to come.

Of course, SpaceX isn't a cheap stock at 93 times forward earnings. It might be a good idea to limit position sizing and expect elevated volatility as the growth story plays out. But there's not a lot to dislike in the numbers SpaceX just reported, and its rapid growth could result in a far more palatable valuation in the not-too-distant future.

Should you buy stock in Space Exploration Technologies right now?

Before you buy stock in Space Exploration Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $376,696!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,333,920!*

Now, it’s worth noting Stock Advisor’s total average return is 925% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of October 21, 2026.

Matt Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Today’s Market Recap: U.S. Stocks Rebound as Nasdaq Gains 1.11%, Memory Chip Stocks Rally, SanDisk Jumps 5.5%U.S. stocks rebounded on Monday, October 19, following a sharp sell-off in AI infrastructure stocks last week, lifting the Nasdaq Composite and S&P 500.At the clo
Author  TradingKey
Yesterday 01: 25
U.S. stocks rebounded on Monday, October 19, following a sharp sell-off in AI infrastructure stocks last week, lifting the Nasdaq Composite and S&P 500.At the clo
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 20, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 20, 2026. Read on for the details.
Author  Mitrade
Yesterday 03: 17
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 20, 2026. Read on for the details.
placeholder
Dollar presses 102 as the 10-year yield sits at 5.14% — and October hike odds are only 17%The dollar index closed at 101.99 (+0.20%) on Monday after briefly topping 102.07, while the 10-year Treasury yield rose to 5.14% and the 2-year hit 4.774% — yet futures price only about a 17% chance of a hike at the October 27-28 FOMC, versus roughly 90% for December. The driver is a global bond selloff, not a Fed repricing: France's 10-year OAT jumped to 4.84% ~ 4.94% and the OAT-Bund spread widened to 140 ~ 146bp. Here are the levels, the cross-asset read-through and what to watch.
Author  Irene Q.
Yesterday 05: 50
The dollar index closed at 101.99 (+0.20%) on Monday after briefly topping 102.07, while the 10-year Treasury yield rose to 5.14% and the 2-year hit 4.774% — yet futures price only about a 17% chance of a hike at the October 27-28 FOMC, versus roughly 90% for December. The driver is a global bond selloff, not a Fed repricing: France's 10-year OAT jumped to 4.84% ~ 4.94% and the OAT-Bund spread widened to 140 ~ 146bp. Here are the levels, the cross-asset read-through and what to watch.
placeholder
Tesla Q3 Earnings Preview: Can Auto Margins Stabilize? Wall Street’s Highest Price Target at $550Tesla (TSLA) will report its third-quarter 2026 financial results after the U.S. stock market close on October 21, Eastern Time, and host an earnings conference call at 17:30 that day. Th
Author  TradingKey
Yesterday 10: 22
Tesla (TSLA) will report its third-quarter 2026 financial results after the U.S. stock market close on October 21, Eastern Time, and host an earnings conference call at 17:30 that day. Th
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 21, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 21, 2026. Read on for the details.
Author  Mitrade
11 hours ago
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 21, 2026. Read on for the details.
goTop
quote