SpaceX stock jumps almost 8% after revenue rises 161%

On Tuesday 20 October SpaceX reported its third-quarter results. On Wednesday 21 October its shares (ticker SPCX, listed on Nasdaq) rose almost 8%, Yahoo Finance reports. NBC News notes that the stock was already up 2.5% in extended trading on Tuesday after the report.

What was in the report? Revenue for the quarter was $14.6 billion, against $5.6 billion a year earlier, a rise of 161%. Net income was $4.4 billion, against a net loss of $1.1 billion a year ago. Adjusted EBITDA (earnings before interest, taxes and depreciation, with adjustments) was $8.8 billion, up 306%. Analysts expected less: the LSEG revenue estimate was $12.72 billion according to NBC News, and $12.86 billion according to Fortune.

The main engine of growth is not rockets. The Super Intelligence (SI) segment, which is AI, brought in $7.56 billion, up from $813 million a year ago. It is now bigger than Connectivity, which includes Starlink: $5.25 billion, up 69%. The Space segment, which covers launches, earned $1.77 billion. SpaceX credits the SI jump to cloud services agreements, the acquisition of Cursor and apps built on its own AI models, including Grok Bot. NBC News adds that customers renting its computing capacity include Anthropic, Google and Reflection AI.

Growth has a price. Capital spending for the quarter was $19.6 billion, of which $16.4 billion went to AI. A year ago total capex was $6.9 billion. SI posted an operating profit of $431 million, against a loss of $1.26 billion in the previous quarter. NBC News points out that SpaceX itself says it needs sustained investment before AI becomes consistently profitable.

The second reason for interest in the stock is Tesla. According to Yahoo Finance, Elon Musk said on the earnings call that SpaceX and Tesla have each formed special committees to discuss a possible merger. NBC News says neither SpaceX, Tesla nor Musk has officially committed to a deal. We covered Tesla separately in our story on its third-quarter results.

The backdrop helped too. Yahoo Finance says chip stocks rose on Wednesday and the Nasdaq Composite gained about 1%. We do not know how much of the jump came from the report, how much from merger talk and how much from the mood of the whole market. This is not a price forecast and not advice to buy or sell.

Confirmed facts

• On Tuesday 20 October SpaceX published third-quarter results: revenue of $14.6 billion, up 161% from $5.6 billion a year earlier.^[1][3]
• Net income was $4.4 billion against a net loss of $1.1 billion a year ago, and adjusted EBITDA was $8.8 billion, up 306%.^[1]
• The LSEG revenue estimate was $12.72 billion (NBC News); Fortune puts the analyst expectation at $12.86 billion.^[3][4]
• SI (Super Intelligence) segment revenue was $7.56 billion against $813 million a year ago; Connectivity was $5.25 billion, up 69%; Space was $1.77 billion.^[1]
• SpaceX ties the SI growth to cloud services agreements, the acquisition of Cursor and its own AI models and apps, including Grok Bot.^[1]
• Customers renting SpaceX computing capacity include Anthropic, Google and Reflection AI.^[3]
• Capital spending for the quarter was $19.6 billion, of which $16.4 billion went to SI; a year ago it was $6.9 billion.^[1][3]
• SI operating income was $431 million against a loss of $1.26 billion in the previous quarter.^[1]
• After the report on Tuesday the shares were up 2.5% in extended trading.^[3]
• On Wednesday 21 October SpaceX shares (SPCX) rose almost 8%.^[2]
• Musk said on the earnings call that SpaceX and Tesla have each formed special committees to discuss a possible merger.^[2]
• Neither SpaceX, Tesla nor Musk has officially committed to a deal.^[3]
• Chip stocks rose on Wednesday and the Nasdaq Composite gained about 1%.^[2]
• Starlink had 13.6 million consumer subscribers as of 30 September 2026.^[1]

Implications

• ConfirmedSpaceX's AI segment now earns more revenue than Starlink: $7.56 billion against $5.25 billion.
• ConfirmedA SpaceX and Tesla merger is being discussed, but nothing is officially decided.
• Our readingThe jump in the stock reflects a mix of the report, the merger talk and a broader rise in tech.

Still unknown

• Whether a SpaceX and Tesla merger will happen and on what terms.
• Whether the AI segment can stay profitable while spending tens of billions of dollars.
• How much of the rise came from the report, how much from merger talk and how much from the market as a whole.

Who it affects

United States, Worldwide. People following tech stocks, AI and Elon Musk who wonder why SpaceX is suddenly rising

Sources

1. SpaceX: SpaceX Reports Third Quarter 2026 Results October 20, 2026 · official
2. Yahoo Finance: Stock market today: Dow, S&P 500, Nasdaq rise as tech rallies, SpaceX stock surges nearly 8% October 21, 2026 · media
3. NBC News: SpaceX quarterly revenue jumps, led by rental income for data-center capacity October 20, 2026 · media
4. Fortune: SpaceX posts first operating profit as public company as AI revenue nearly triples to $7.6 billion, cruising past Starlink October 20, 2026 · media