SpaceX (NASDAQ:SPCX) Announces Quarterly Earnings Results

SpaceX (NASDAQ:SPCX) posted its earnings results on Tuesday. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.10 by $0.25, FiscalAI reports. The company had revenue of $14.57 billion for the quarter. The business’s revenue for the quarter was up 161.4% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.36) EPS.

Here are the key takeaways from SpaceX’s conference call:

• SpaceX reported a sharp third-quarter acceleration, with revenue rising 161% year over year to $14.6 billion, net income reaching $4.4 billion versus a prior-year loss, and adjusted EBITDA increasing 306% to $8.8 billion.
• Starlink continued strong expansion, adding 1.6 million consumer subscribers to reach 13.6 million, while enterprise and government revenue grew 91% year over year. Aviation contracts now cover roughly 12,000 aircraft, and Starlink Mobile surpassed 22 million monthly users.
• Starship Flight 14 reached orbit and deployed operational V3 Starlink satellites, which management says will substantially increase network capacity. SpaceX plans to attempt recovery of both stages on Flight 15 and targets weekly Starship launches in the first half of 2027, although executives acknowledged that success is not guaranteed.
• The superintelligence business became the largest growth driver, generating $7.6 billion of third-quarter revenue, supported by cloud-compute agreements and the Cursor acquisition. Management cited strong demand, less-than-one-year compute payback periods, and a target of $100 billion in annual recurring revenue by year-end.
• SpaceX is committing to an extremely capital-intensive expansion: third-quarter capital expenditures were $19.6 billion, with fourth-quarter spending now expected at $35 billion-$40 billion to support compute, Starship, and satellite infrastructure. The company also recorded $1.2 billion of stock-based compensation related to the Cursor acquisition, while its ambitious compute and launch targets carry substantial execution and funding risks.

SpaceX Price Performance

Shares of SPCX stock opened at $159.31 on Thursday. SpaceX has a 1 year low of $104.83 and a 1 year high of $225.64. The company’s fifty day simple moving average is $149.18. The company has a debt-to-equity ratio of 0.29, a quick ratio of 4.99 and a current ratio of 5.12. The company has a market cap of $2.10 trillion and a P/E ratio of -1,770.11.

Key Stories Impacting SpaceX

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Q3 results substantially exceeded expectations. SpaceX reported $0.35 in adjusted EPS versus a $0.10 consensus estimate, while revenue rose 161% year over year to approximately $14.58 billion. The company also swung from a year-earlier loss to roughly $4.4 billion in net income. SpaceX quarterly revenue jumps, beats estimates as AI business surges
• Positive Sentiment: AI infrastructure has become the primary growth catalyst. The Super Intelligence division generated about $7.56 billion in quarterly revenue, up sharply from the prior year, and posted an operating profit. Management said deployed computing capacity reached 1.7 gigawatts and indicated that new installations can pay back in less than a year at current pricing. Why SpaceX Stock Popped After Earnings
• Positive Sentiment: Forward guidance and analyst sentiment improved. SpaceX projected first-quarter 2027 revenue of $33 billion to $37 billion, supported by a roughly $63 billion backlog. JPMorgan raised its price target from $240 to $500, while Wells Fargo, TD Cowen and Needham also lifted targets or maintained bullish ratings. JPMorgan says SpaceX will triple after huge third-quarter earnings beat
• Positive Sentiment: Starlink continues to provide recurring cash flow. Connectivity revenue reached about $5.25 billion, with consumer subscribers growing to 13.6 million. Investors also welcomed Musk’s comments about expanding AI capacity and the possibility of broader Starlink mobile services.
• Neutral Sentiment: A potential Tesla (TSLA) merger is being explored, but remains uncertain. Independent committees at both companies are reviewing a combination that could create technology and AI synergies. However, shareholder approval, valuation, regulatory issues and Tesla’s China operations could complicate any transaction. SpaceX and Tesla boards form special committees to review merger
• Negative Sentiment: Investors remain concerned about enormous capital requirements. Third-quarter capital expenditures were approximately $19.6 billion, and management expects $35 billion to $40 billion in fourth-quarter spending. Analysts warn that continued AI and satellite investment could produce substantial cash burn, debt needs and execution risk.
• Negative Sentiment: Insider share-sale eligibility may add supply pressure. Reports indicate that approximately 911.5 million shares held by select insiders became eligible for sale, potentially increasing volatility and limiting near-term upside. SpaceX is set to make dubious history yet again

Analysts Set New Price Targets

A number of analysts have recently commented on SPCX shares. UBS Group reiterated an “overweight” rating and issued a $300.00 price target on shares of SpaceX in a research note on Wednesday. William Blair restated an “outperform” rating on shares of SpaceX in a research report on Friday, October 9th. Phillip Securities upgraded shares of SpaceX to a “strong sell” rating and set a $75.00 price objective on the stock in a research report on Friday, July 31st. Oppenheimer raised their target price on shares of SpaceX from $250.00 to $280.00 and gave the stock an “outperform” rating in a report on Wednesday, September 2nd. Finally, Evercore reaffirmed an “outperform” rating and issued a $275.00 target price on shares of SpaceX in a research report on Friday, October 16th. Three analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $244.19.

Insider Activity at SpaceX

In other news, COO Gwynne Shotwell sold 342,170 shares of the company’s stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $153.57, for a total value of $52,547,046.90. Following the completion of the sale, the chief operating officer directly owned 2,472,035 shares in the company, valued at $379,630,414.95. This represents a 12.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On SpaceX

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Viking Fund Management LLC purchased a new stake in SpaceX in the third quarter worth about $1,358,000. Wedbush Securities Inc. bought a new position in shares of SpaceX in the second quarter worth about $5,094,000. Avior Wealth Management LLC purchased a new position in shares of SpaceX during the 3rd quarter valued at about $2,934,000. Apella Capital LLC lifted its position in shares of SpaceX by 218.2% during the 3rd quarter. Apella Capital LLC now owns 8,424 shares of the company’s stock valued at $1,412,000 after buying an additional 5,777 shares in the last quarter. Finally, Hyperion Asset Management Ltd bought a new position in shares of SpaceX during the 2nd quarter valued at approximately $201,137,000.

About SpaceX

Space Exploration Technologies Corp., commonly known as SpaceX, is a privately held aerospace company founded in 2002 by Elon Musk. The company develops and operates launch vehicles and spacecraft designed to reduce the cost of access to space and support commercial, government and scientific missions.

SpaceX’s principal products and services include the Falcon 9 and Falcon Heavy rockets, the Dragon spacecraft and the Starlink satellite communications network. Falcon rockets are used to launch satellites, cargo and crew, while Dragon spacecraft support transportation to and from low Earth orbit.