SpaceX reported its first profit since going public, and investors rewarded it. The company earned 35 cents a share in the third quarter, well above the 10 cents analysts expected, and its stock closed up 7.8% on Wednesday, according to a Zacks market summary on Yahoo Finance and a Reuters market report.
Revenue jumped 161% from a year earlier to $14.57 billion. Wall Street had forecast about $12.53 billion.
What drove the numbers
SpaceX is no longer just a rocket company. It now sells satellite internet, runs an AI business, and recently moved toward phone service with Starlink Mobile. Management repeated its goal of reaching $100 billion in annual recurring revenue by the end of 2026. It also projected $500 billion to $1 trillion in annual recurring revenue by the end of 2027, according to Zacks.
The results arrived at a good moment for the AI trade. The Nasdaq led Wall Street higher on Wednesday as SpaceX and server maker Super Micro Computer lifted sentiment about artificial intelligence demand. Super Micro rose 9.6% after forecasting quarterly revenue and profit margin above Wall Street estimates.
A volatile first months as a public company
SpaceX went public in June in the largest stock market debut on record, at a valuation near $2.2 trillion. Its shares then slid through the summer, in part after Musk’s rocket test delays, and fell below the IPO price for stretches. Wednesday’s profit report gave holders a reason to cheer after months of choppy trading.
Not every move helped the company. SpaceX’s push into mobile service has already pressured the stocks of AT&T, Verizon and T-Mobile, whose investors worry about a new rival.
What to watch next
Investors will look for proof that revenue growth can hold up and that the profit was not a one-time gain. They will also watch how much SpaceX spends on AI infrastructure. Musk also made headlines this week with a pledge to give a SpaceX share to every child in America, which we covered in our report on his plan for a share for every kid.
