SpaceX earnings trigger major analyst upgrades
A 161 percent surge in quarterly revenue and aggressive AI expansion plans led Wall Street to significantly raise price targets for the aerospace firm.
By Valentina Cruz ·
SpaceX revenue reached 14.6 billion dollars in the third quarter of 2026, marking a 161 percent year over year increase that far exceeded market expectations. This financial performance drove a sharp rise in stock prices during after hours and premarket trading sessions on October 21. The company’s results signaled a robust shift in its operational trajectory, prompting immediate reassessment by financial institutions across the sector.
The surge in top line growth was primarily fueled by the company’s Super Intelligence division, which generated approximately 7.6 billion dollars in revenue. This segment experienced nearly 830 percent growth over the previous year and emerged as the largest contributor to total company earnings. Meanwhile, the Connectivity segment delivered 5.2 billion dollars, supported by a growing consumer base that now stands at 13.6 million Starlink subscribers.
Profitability metrics also showed significant improvement during the period. The company reported a net profit of 4.4 billion dollars, a substantial turnaround from a loss recorded in the same quarter of the prior year. Adjusted EBITDA reached 8.8 billion dollars, reinforcing the view that the company’s expansion is being supported by efficient capital allocation and strong operational leverage.
Analysts responded to these figures with a wave of price target increases, citing accelerating AI compute expansion and progress in launch capabilities as key drivers. JPMorgan more than doubled its target to 500 dollars from 240 dollars, while Cantor Fitzgerald raised its estimate to 345 dollars. Other major firms, including Barclays, Citi, and UBS, also adjusted their targets upward, reflecting broad confidence in the company’s long term growth potential.
Guidance for the coming year further bolstered investor sentiment. CEO Elon Musk and CFO Bret Johnsen outlined first quarter 2027 revenue projections of 33 billion to 37 billion dollars, a figure significantly higher than the roughly 22 billion dollars previously modeled by analysts. The company also detailed plans for fourth quarter capital expenditures between 35 billion and 40 billion dollars, focused on expanding AI infrastructure in locations such as Memphis and Southaven.
Management stated that it aims to achieve 2.5 to 3 gigawatts of nameplate compute capacity by the end of 2026, with pathways to reach 13 gigawatts or more by the end of 2027. Musk noted that demand from hyperscalers remains relentless, with current pricing structures supporting payback periods of less than a year, and potentially as short as six months in some cases.
Beyond financial metrics, the earnings call highlighted operational milestones including recent Starship orbital successes and V3 satellite deployments. The company also discussed the rapid adoption of its Grok Bot, spectrum expansion plans, and the formation of special committees to explore a potential combination with Tesla. Shares, which closed at 147.79 dollars on October 20, jumped approximately 8 percent in early premarket trading as investors digested the new data.
The collective movement in analyst targets reflects heightened conviction in SpaceX’s trajectory across its launch, connectivity, and artificial intelligence businesses. While elevated spending remains a point of focus for some observers, the overall sentiment suggests that the company is entering a phase of accelerated growth driven by its expanding AI infrastructure and global satellite network.
Source: Teslarati
