SpaceX quarterly revenue jumps, mostly from renting out data center capacity - NBC News

Share Add NBC News to Google Oct. 20, 2026, 5:18 PM EDT / Source : Reuters By Reuters Elon Musk’ s SpaceX posted a third-quarter profit Tuesday that ​blew past estimates as revenue more than doubled thanks to its surging AI business, sending its shares up 2.5% in extended trading. Capital expenses nearly tripled as ‌it invested in compute infrastructure. “We are in an inflection moment for SpaceX across launch, connectivity and superintelligence,” Musk said on a call with investors. Starlink and SpaceX’s broader connectivity operations have been the company’s main financial engine, underpinning Musk’s AI ambitions. But SpaceX’s own AI software, including xAI’s Grok, has so far been overshadowed by rivals OpenAI, Anthropic and Alphabet’s Google. Revenue in the third quarter surged 161% to $14.58 billion for the three months ​ended Sept. 30, compared with analysts’ estimate of $12.72 billion, according to data compiled by LSEG. It reported a net income of $4.4 billion versus a net loss of $1.1 billion ​a year earlier and analysts’ expectation for a profit of $1.57 billion. On a per-share basis, it earned 45 cents according to IBES calculations, ⁠outstripping a 13-cent average estimate. AI revenue rose more than ninefold to $7.6 billion, mostly from renting out computing capacity, but AI took $16.4 billion of the company’s $19.6 billion in capital spending, which ​SpaceX expects to stay near that level in the near future. SpaceX is making its AI money mainly by renting out data center capacity to developers such as Anthropic, Google and Reflection AI rather ​than from its own models, a business closer to a cloud provider’s than an AI lab’s. “With AI revenue now the company’s biggest business line, the company’s hyperscale business is quickly providing operating strength and leverage which will carry into the advancements of its satellite and launch business. Increasingly the strength and diversification of SpaceX makes a merger with Tesla feel imminent,” said Daniel Newman, CEO of tech research group the Futurum ​Group. Barclays suggested last week that a deal could be announced before Tesla’s annual meeting, with SpaceX the likelier acquirer, though neither company nor Musk has officially committed to favoring a ​deal. The company’s AI business spans Grok, social media platform X and a fast-growing data center operation. It is also the company’s biggest area of investment. For Subscribers FOR SUBSCRIBERS Trump keeps promising ‘goodies’ on the campaign trail — but only if Republicans win FOR SUBSCRIBERS Why 1 in 5 multiple sclerosis patients like Christina Applegate are misdiagnosed FOR SUBSCRIBERS What students are actually watching on YouTube FOR SUBSCRIBERS Pentagon’s Afghanistan withdrawal review expected to condemn military leaders FOR SUBSCRIBERS Attack ad spreading online rattles Ohio governor’s race — and no one is taking credit for it FOR SUBSCRIBERS Trans choruses offer refuge and community amid a wave of restrictive policies FOR SUBSCRIBERS The Role of the International Criminal Court (ICC) FOR SUBSCRIBERS The New York Knicks are the defending champs — and the face of the NBA’s biggest dilemma FOR SUBSCRIBERS How France’s far right is using a weekend of riots and chaos to seize power FOR SUBSCRIBERS ‘I trusted you all’: Judges question Trump administration’s credibility FOR SUBSCRIBERS Should the Eagles have played Jalen Hurts after he was diagnosed with a blood clot? FOR SUBSCRIBERS Battleground state voters weigh who should oversee their elections FOR SUBSCRIBERS The Data Dive: Steve Kornacki on how Susan Collins could transcend Trump in Maine FOR SUBSCRIBERS Why an exceptionally high number of firefighters have died in wildfires this year FOR SUBSCRIBERS James Talarico and Ken Paxton hold a day of dueling rallies as Texas begins early voting Slide 1 of 1 The business earns revenue from compute contracts with Anthropic, Alphabet’s Google and Reflection ‌AI. Operating losses ⁠at the AI unit have been large, and SpaceX has cautioned it will need sustained investment before it can consistently generate profits. The satellite internet unit has continued to expand its subscriber base, aided by additional satellite launches and a growing range of consumer, enterprise, aviation, maritime and government services. Starlink grows subscribers Starlink reached 13.6 million subscribers in the third quarter, above the 12.19 million analysts expected, but growth is coming at a price: Average monthly revenue per subscriber has fallen from $99 in 2023 to $69 in the third quarter as it expands abroad with cheaper plans. The ​company has said geographic expansion beyond the wealthiest ​countries could push average revenue per user ⁠lower over time. Investors have been keen to know whether that pricing pressure has started to show up as SpaceX enters more international markets and rolls out lower-priced plans. Investors are also watching whether SpaceX can keep growing while improving the economics of its network. It is spending heavily ​on coverage, capacity and direct-to-device mobile services. Starship, SpaceX’s next-generation reusable rocket system, has yet to enter commercial service. It is expected to enable ​deployment of higher-bandwidth Starlink ⁠satellites and orbital AI-computing infrastructure. The company’s ability to turn Starship into a reliably reusable vehicle is central to its longer-term strategy. Starship costs mount SpaceX successfully deployed several Starlink satellites last month, in Starship’s first orbital test flight that ended hours earlier than expected after an engine issue. For Subscribers FOR SUBSCRIBERS Trump keeps promising ‘goodies’ on the campaign trail — but only if Republicans win FOR SUBSCRIBERS Why 1 in 5 multiple sclerosis patients like Christina Applegate are misdiagnosed FOR SUBSCRIBERS What students are actually watching on YouTube FOR SUBSCRIBERS Pentagon’s Afghanistan withdrawal review expected to condemn military leaders FOR SUBSCRIBERS Attack ad spreading online rattles Ohio governor’s race — and no one is taking credit for it FOR SUBSCRIBERS Trans choruses offer refuge and community amid a wave of restrictive policies FOR SUBSCRIBERS The Role of the International Criminal Court (ICC) FOR SUBSCRIBERS The New York Knicks are the defending champs — and the face of the NBA’s biggest dilemma FOR SUBSCRIBERS How France’s far right is using a weekend of riots and chaos to seize power FOR SUBSCRIBERS ‘I trusted you all’: Judges question Trump administration’s credibility FOR SUBSCRIBERS Should the Eagles have played Jalen Hurts after he was diagnosed with a blood clot? FOR SUBSCRIBERS Battleground state voters weigh who should oversee their elections FOR SUBSCRIBERS The Data Dive: Steve Kornacki on how Susan Collins could transcend Trump in Maine FOR SUBSCRIBERS Why an exceptionally high number of firefighters have died in wildfires this year FOR SUBSCRIBERS James Talarico and Ken Paxton hold a day of dueling rallies as Texas begins early voting Slide 1 of 1 The space segment includes commercial launches, government missions and Starship development and remains a significant source of costs and ⁠uncertainty. Falcon launch activity ​has stayed robust, but revenue can vary with the mix of internal Starlink deployments, commercial customer missions and ​government contracts. SpaceX has increasingly prioritized launches for its own satellite network over third-party payloads while absorbing significant costs tied to Starship’s development. Share Add NBC News to Google Reuters Reuters