- SpaceX reported third-quarter revenue of $14.6 billion, up 161% from a year earlier and well above the $12.72 billion LSEG consensus. Net income reached $4.4 billion against a $1.05 billion loss a year ago, and the shares rose 10.2% before Wednesday’s open.
- The AI business, which SpaceX calls Super Intelligence, is now the largest unit, with revenue up roughly ninefold to $7.56 billion from $813 million. That is more than half of total revenue, alongside recurring Starlink income, and guidance for first-quarter 2027 revenue of $33 billion to $37 billion sits far above the $22.2 billion analysts expected.
- On the earnings call, Elon Musk said he is considering combining SpaceX with Tesla, a deal that would be the largest merger in history, and that both boards have set up committees to discuss it. Tesla rose 2.5% premarket and reports its own third-quarter results after Wednesday’s close.
- The read-across extends to the wider AI infrastructure trade. Truist called the quarter the first data point of the earnings season that supports the bull case for AI cloud providers, citing SpaceX’s comment that it could rent out its capacity several times over, and named CoreWeave and Nebius as likely beneficiaries.
What Happened?
SpaceX, which listed on the Nasdaq in June in the largest IPO ever, released third-quarter results on Tuesday. Revenue rose 161% to $14.6 billion, operating income was $2.8 billion and net income was $4.4 billion. Chief Financial Officer Bret Johnson attributed the growth to continued momentum in Connectivity and what he called a clear inflection in the Super Intelligence business. Musk then told analysts he sees a lot of merit in combining SpaceX and Tesla, and that both companies have formed board committees to study a consolidation.
Why It Matters?
The quarter changes what SpaceX is as an investment. A company known for launches and satellite internet now earns more than half its revenue from AI compute, which puts it in direct comparison with the neocloud providers that have sold off on financing worries. Truist’s argument that pricing power will more than offset higher rates is the key claim, because if it holds, the debate over debt-funded AI capacity looks less like a solvency question and more like a timing one. The Tesla comments add a second, separate driver: a formal board process moves a merger from speculation to something shareholders of both companies must now price. Net income exceeding operating income also means part of the quarter’s profit came from outside core operations, which is worth separating from the growth story.
What’s Next?
Tesla’s third-quarter report after Wednesday’s close is the immediate test of how investors weigh the merger talk. Watch for detail from either board committee on structure, valuation or timeline, since none has been given. The $33 billion to $37 billion first-quarter 2027 revenue guide sets a very high bar for the Super Intelligence unit to keep scaling. Investors in CoreWeave and Nebius will be watching whether SpaceX’s demand commentary is echoed by other AI cloud providers this earnings season.
Affected Tickers and Coins: SPCX, TSLA, CRWV, NBIS
Source: CNBC
