SpaceX Revenue Jumps 161% as Wall Street Lifts Targets

SpaceX reported revenue of $14.6 billion for the third quarter of 2026, a 161 percent increase from the same period last year, according to results released after market close on October 20. The figure significantly exceeded analyst forecasts, which had projected near $12.7 billion. Following the report, shares rose sharply in after-hours and premarket trading on October 21, gaining approximately 8 percent from the prior day's close of $147.79.

The company also turned a profit, posting net income of $4.4 billion compared with a loss in the prior-year quarter, while adjusted EBITDA reached $8.8 billion. Revenue was driven by the Super Intelligence division, which generated roughly $7.6 billion and grew nearly 830 percent year over year to become the largest contributor. The Connectivity segment brought in $5.2 billion, supported by subscriber additions that lifted Starlink's consumer base to 13.6 million.

During the October 20 earnings call, CEO Elon Musk and CFO Bret Johnsen provided guidance for first-quarter 2027 revenue of $33 billion to $37 billion, a range far above the roughly $22 billion analysts had modeled. They also outlined plans for fourth-quarter capital spending of $35 billion to $40 billion, focused on AI compute infrastructure at sites including Memphis and Southaven. Management set a target of 2.5 to 3 gigawatts of nameplate compute capacity by year-end and discussed pathways to 13 gigawatts or more by the end of 2027. Musk described relentless demand from hyperscalers and other customers, with compute pricing supporting payback periods of less than a year.

The call also covered Starship's recent orbital success and V3 satellite deployment, Starlink pricing and enterprise momentum, rapid Grok Bot adoption, and spectrum expansion plans. Additionally, the company formed special committees to explore a possible combination with Tesla.

In response, JPMorgan more than doubled its price target to $500 from $240 while keeping an Overweight rating. Cantor Fitzgerald lifted its target to $345 from $246 (Overweight), while Barclays raised its target to $300 from $254 (Overweight). Citi increased its target to $240 from $200 (Buy), UBS moved to $230 from $210 (Buy), and TD Cowen raised its target to $224 from $200 (Buy). Morgan Stanley held an Overweight rating with a $300 target.

Other firms also adjusted higher, including Wells Fargo (to $274 from $214) and Clear Street (to $248 from $217). Analysts broadly cited the strong quarterly print, accelerating AI compute expansion, Starlink progress, and Starship milestones as drivers of higher long-term growth and earnings power. The average analyst price target has moved higher, reflecting greater conviction in SpaceX's trajectory across launch, connectivity, and the Super Intelligence business, even as elevated spending remains a point of focus.