SpaceX shares rose in pre-market trading on Wednesday, 21 October 2026, after the company reported its first quarterly profit since going public, gave revenue guidance far above Wall Street's expectations, and Elon Musk said SpaceX and Tesla had set up committees to explore combining the two companies.
The numbers
| Measure (Q3 2026) | Result | Expectation / comparison |
|---|---|---|
| Revenue | $14.58 billion, up 161% | About $12.7 billion expected |
| Earnings per share | $0.35 | $0.12 expected |
| Net income | $4.4 billion | $1.88 billion expected; $1.1 billion loss a year earlier |
| AI unit revenue | $7.56 billion, up 830% | About 52% of total revenue |
| Starlink operating profit | $2.37 billion on $5.25 billion revenue | About 85% of group operating profit |
| Capital spending | $19.6 billion | Q4 guidance $35–40 billion |
| Q1 2027 revenue guidance | $33–37 billion | LSEG consensus $22.2 billion |
Figures are from reports by Benzinga, Yahoo Finance/TIKR and the Los Angeles Times.
AI now brings in half the revenue
The biggest change is the AI business. SpaceX's "Super Intelligence" unit, built on Elon Musk's AI company xAI and including the coding tool Cursor, generated $7.56 billion in revenue, up 830% on a year earlier and more than half of the total. But the profits still come mainly from Starlink, the satellite internet service, which earned $2.37 billion in operating profit. Starlink had roughly 13.6 to 14 million subscribers in 174 markets.
The AI push is expensive. SpaceX spent $19.6 billion on capital investment in the quarter, mostly on AI computing, more than double its adjusted EBITDA of $8.8 billion, and expects $35–40 billion in the fourth quarter. TIKR also noted that about $1.6 billion of net income came from items below the operating line, including other income and a tax benefit, so the profit is less "clean" than the headline suggests. For context on the AI spending boom, see our analysis Is AI a Bubble?
Tesla merger committees
Musk said SpaceX and Tesla had each formed independent special committees "at the request of shareholders" to explore a merger. He said there was "a lot of merit to combining the companies", according to the LA Times, but that he is not taking part in the committees because he has a conflict of interest, and that no terms have been agreed. Any deal would need approval from holders of 50% of all Tesla shares, according to TIKR.
Share price
Reports of the after-hours move varied widely, from gains of about 1.5% to nearly 8%. CNBC reported the stock was up more than 8% in pre-market trading on Wednesday. SpaceX listed on 12 June at $135 a share and fell to a low of $104.83 in July. Our earlier piece on the debate over SpaceX's valuation explains why investors are divided.
What happens next
Tesla reports its own third-quarter results after the US market close on 21 October, when investors will look for more detail on the merger idea. A large expiry of the SpaceX share lock-up, which stops early investors and staff from selling, also follows these results and could add selling pressure.
This article is for information only and is not investment advice.
