SpaceX Q3 Revenue Soars 161% to $14.58 Billion on Starlink Growth

SpaceX Third-Quarter Revenue Surges 161%

Elon Musk's aerospace company, SpaceX, significantly outperformed market expectations in the third quarter, reporting revenues that skyrocketed by 161% to reach $14.58 billion. The company posted an adjusted earnings per share of $0.35, easily surpassing the consensus forecasts which predicted revenues of $12.72 billion and an adjusted profit of $0.13 per share. Following the earnings release, the stock climbed 2.5% in after-hours trading, bringing the company's market capitalization to $1.94 trillion as of the last market close.

Starlink Drives Growth and Expansion

The stellar financial performance was largely fueled by the continued subscriber growth of the Starlink satellite internet service. While SpaceX initially built its reputation on reusable rockets, the vast majority of its recent revenues and profits stem from its connectivity operations. Optimism is also growing around Starlink's plans to launch a cellular network in the United States, following the acquisition of 800 MHz of low-band spectrum and a Federal Communications Commission (FCC) approval for a constellation of 15,000 satellites.

"These strategic moves significantly strengthen Starlink Mobile's ability to compete directly with major telecom operators through broader and deeper coverage," noted analysts at RBC Capital Markets, maintaining an outperform rating with a price target of $225 per share.

Strategic Acquisitions and AI Infrastructure

During the third quarter, SpaceX completed the acquisition of AI-powered code startup Cursor for $60 billion. Additionally, Alphabet utilized a Falcon 9 rocket to launch proprietary AI chips into Earth's orbit from Vandenberg Air Force Base in Santa Barbara County, California, marking a notable step toward testing space-based artificial intelligence infrastructure.