NEW DELHI — Elon Musk’s SpaceX reported a 161% surge in third-quarter revenue to $14.58 billion, fueled by rapid growth in artificial intelligence infrastructure and its Starlink satellite internet business, as the billionaire entrepreneur outlined an ambitious goal of reaching $1 trillion in annual revenue by 2028.
The company reported net income of $4.4 billion for the quarter ended September 30, reversing a loss of approximately $1.1 billion during the same period last year.
SpaceX shares surged more than 8% in after-hours trading following the earnings announcement, reflecting investor enthusiasm over the company’s expanding AI operations and stronger financial performance.
A major contributor to the results was SpaceX’s artificial intelligence division, now operating under the Super Intelligence brand, which generated $7.56 billion in quarterly revenue, nearly 10 times its year-earlier level.
The business has expanded rapidly as demand for advanced computing infrastructure and data center capacity continues to grow among AI developers.
Its customers include major technology companies and AI developers such as Anthropic, Alphabet’s Google and Reflection AI.
The expansion has positioned AI infrastructure as a major growth engine for SpaceX alongside its established satellite communications and space technology operations.
However, the company’s aggressive investment strategy has also resulted in a substantial increase in spending.
Capital expenditures nearly tripled from the previous year to $19.6 billion during the third quarter as SpaceX continued expanding its computing infrastructure.
Chief Financial Officer Bret Johnsen said the company expects capital spending to accelerate further during the fourth quarter, reaching between $35 billion and $40 billion.
Despite the rising expenditures, management expressed confidence in the company’s growth prospects.
SpaceX forecast revenue of $33 billion to $37 billion for the first quarter of 2027, substantially exceeding analysts’ average projection of $22.2 billion.
Johnsen attributed the optimistic outlook to improved visibility into the company’s growing pipeline of computing infrastructure contracts.
The AI business also recorded a significant turnaround in profitability.
The xAI operation generated net income of $431 million during the quarter, compared with a loss of $1.7 billion in the corresponding period last year.
Meanwhile, SpaceX’s connectivity division, which includes its Starlink satellite broadband service, continued to deliver strong growth.
Revenue from the segment increased 69% year-over-year to $5.25 billion as demand for satellite-based internet connectivity expanded.
Starlink’s subscriber base reached 13.6 million, compared with 12 million a year earlier, demonstrating continued adoption of the service across residential, commercial and other markets.
The results also brought renewed attention to a potential merger between SpaceX and electric vehicle manufacturer Tesla, another company led by Musk.
During the earnings call, Musk said combining the two businesses would be a good idea and confirmed that special committees had been established at both companies to evaluate the possibility.
A merger could bring together Tesla’s electric vehicle, robotics and energy technologies with SpaceX’s satellite communications, aerospace and AI infrastructure businesses.
However, no final agreement has been announced, and any transaction would face significant financial, regulatory and shareholder considerations.
Musk also outlined an exceptionally ambitious long-term revenue target as SpaceX expands its role in AI computing and related infrastructure.
He said annual revenue could eventually reach between $500 billion and $1 trillion as demand for AI services and computing capacity accelerates.
“As crazy as this sounds, $1T in SpaceX revenue in 2028 is no longer impossible,” Musk wrote on X.
SpaceX shares closed Tuesday’s regular trading session at $147.79 before climbing more than 8% following the results.
The rally also supported sentiment toward technology stocks, with Nasdaq futures advancing as investors reacted to the stronger-than-expected earnings.
The quarterly performance underscores SpaceX’s transformation from a company primarily associated with rocket launches and satellite communications into a diversified technology business with a rapidly expanding presence in artificial intelligence.
However, the company’s aggressive spending plans and extraordinary revenue ambitions also raise questions about the scale of future investment required and whether demand for AI computing infrastructure can sustain its projected growth. (Source: IANS)
