SpaceX reports third-quarter results after the bell on Tuesday, its second earnings report since its June IPO. Analysts expect revenue of $12.72 billion, with AI spending and Starlink in focus.
SpaceX is set to announce third-quarter results after the bell on Tuesday, the second report for Elon Musk's defense tech conglomerate since its record IPO in June. LSEG consensus estimates call for revenue of $12.72 billion and earnings per share of 13 cents.
Analysts lean bullish on AI and Starlink
Mizuho has an outperform rating and a $200 price target, according to a Monday note from analyst Brett Linzey. Shares were trading around $148 as of 10:45 a.m. on Tuesday.
Linzey called AI the largest swing factor for 3Q26 revenue and EBITDA. StreetAccount expects AI revenue of $6.47 billion, connectivity sales of $4.84 billion and space revenue of $1.41 billion. Oppenheimer's expectations are more measured: the bank thinks the quarter will be in-line, with guidance reiterated.
Buzz is building about Starlink's plans for a U.S. mobile network. SpaceX earlier this month announced it is buying 800 MHz of low-band spectrum. The Federal Communications Commission also approved a plan for a 15,000-satellite constellation. RBC Capital Markets analysts wrote that the moves strengthen Starlink Mobile's ability to compete with major carriers.
Spending worried Wall Street last time
SpaceX's first earnings report in August showed capital expenditures of $18.4 billion, with 80% going toward its AI division. That figure spooked Wall Street, and shares dropped after the report.
During the third quarter, SpaceX closed its $60 billion purchase of AI coding startup Cursor. Investors are also looking for updates on how SpaceX seeks to monetize its AI capacity through cloud computing deals with Google, Anthropic and Reflection AI.
Starship and launch profitability
Launch is the segment that captured the public's interest, but it has not been historically profitable. In the second quarter, SpaceX reported launch revenue of $962 million and a net loss of $542 million.
Future profitability hinges on Starship, which is still being developed and tested. Investors are awaiting an update on pending NASA missions and the future of the older Falcon rocket.
Source: CNBC
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