SpaceX (Nasdaq: SPCX) posted its first profit since going public, and its biggest revenue line is now AI, not Starlink. On Tuesday, October 20, the company reported third-quarter revenue of $14.6 billion, up 161% from a year earlier and above the LSEG analyst estimate of $12.72 billion, Reuters reported. Net income was $4.4 billion, or 35 cents a share, reversing a year-ago loss, according to AP, and Yahoo Finance said it was the company's first profitable quarter since its June Nasdaq listing. Yahoo Finance reported AI-related revenue of $7.56 billion, above Starlink connectivity revenue of $5.25 billion.

Most of that AI revenue comes from renting data-center capacity to developers including Anthropic, Google and Reflection AI, Reuters reported, adding that the AI unit, which includes Grok and X, has posted large operating losses and needs sustained investment. Starlink is still growing: consumer subscribers rose by 1.6 million to 13.6 million in the quarter, and executives said they aim to reach volume production of AI chips in a "Terafab" collaboration with Tesla and Intel within two years, CNBC reported. AP's report said Musk hinted at a possible merger with Tesla, which reports its own results Wednesday, per Reuters.

Investors responded quickly. CNBC reported SpaceX shares rose about 8% after the release, and several banks, including Barclays and JPMorgan, raised their price targets. The next test is supply. Up to 1.3 billion shares held by employees and early investors become eligible for sale Thursday, October 22, the largest single release under the company's IPO lockup, according to an FXStreet analysis of the prospectus. Musk's own shares remain locked until June 2027, it said, and insider filings so far show only one sale since earlier lockup releases began in August.

Why it matters

SpaceX now sits among the largest listed companies tied to AI computing, satellite internet and defense launches, so its results ripple into the wider debate over AI spending and the space industry. This quarter recast the company's profile: its AI cloud business, not Starlink, is now the largest revenue line, even though Reuters notes that unit is still losing money. Tesla's results Wednesday and the Thursday lockup release are the next scheduled events. This article reports published figures only and is not investment advice.

Sources

• Reuters via Investing.com — "SpaceX quarterly revenue jumps, beats estimates as AI business surges" — 2026-10-20
• AP News — "Elon Musk's SpaceX reports a profit and he hints at a possible merger with Tesla" — 2026-10-20
• CNBC — "SpaceX stock rises after Q3 earnings beat. What analysts say" (Liz Napolitano) — 2026-10-21
• Yahoo Finance — "SPCX Rises After Hours On AI-Driven Revenue Surge And First Profit Since IPO" — 2026-10-20
• FXStreet — "SpaceX's earnings don't matter. What they unlock does" (Joshua Gibson) — 2026-10-20

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