SpaceX Posts First Quarterly Profit as AI Becomes Top Revenue Source; Musk Confirms Merger Talks with Tesla

U.S.-based space exploration company SpaceX released its third-quarter 2026 financial results, marking the company's first quarterly profit since going public. Revenue grew 161% year-over-year to $14.58 billion, significantly beating market expectations, while net income reached $4.4 billion compared to an $1.1 billion loss in the same period last year. This financial turnaround indicates that SpaceX is generating substantial economic returns following massive capital investments.

Notably, the artificial intelligence (AI) business has become SpaceX's largest source of revenue. The segment's sales surged 830% to approximately $7.56 billion, driven primarily by renting out data center computing capacity to developers such as Anthropic and Alphabet. In comparison, the connectivity division led by Starlink generated $5.25 billion in revenue, while the space launch business brought in $1.77 billion. This shift reflects SpaceX's transformation from a traditional rocket and satellite communications firm into a key global provider of AI infrastructure.

Despite strong revenue growth, SpaceX continues to engage in large-scale capital expansion. Third-quarter capital expenditures totaled $19.6 billion, with $16.4 billion dedicated specifically to the AI business. Chief Financial Officer Bret Johnsen projected that fourth-quarter capex would rise further to between $35 billion and $40 billion. The company reaffirmed its target of reaching $100 billion in annual recurring revenue (ARR) by the end of this year, with Elon Musk predicting ARR could reach $500 billion to $1 trillion by the end of 2027.