SpaceX reported $14.6 billion in revenue for the third quarter of 2026, a 161% increase from a year earlier, as its artificial intelligence business became its largest revenue source. The company recorded $4.4 billion in net income, reversing a $1.1 billion loss during the same period last year.
According to its October 20 earnings report, SpaceX’s renamed Super Intelligence division generated approximately $7.6 billion in revenue, accounting for 52% of the company’s total. The division includes its Grok AI services, the recently acquired Cursor coding platform, and data center operations.
SpaceX AI Revenue Reaches $7.6 Billion
SpaceX’s Super Intelligence division recorded $431 million in operating income despite incurring $1.2 billion in stock-based compensation expenses related to its Cursor acquisition. The division’s revenue increased 830% year over year, supported by cloud computing contracts, Grok adoption, and additional AI infrastructure.
The company’s computing capacity reached 1.7 gigawatts by September 30 as it continued developing its Colossus II data center project in Memphis, Tennessee. SpaceX is also expanding its data center leasing business, providing computing infrastructure to external AI developers.
During an investor discussion, CEO Elon Musk said he was spending four days each week in Memphis overseeing the data center expansion. He identified electricity supply, cooling systems, and physical infrastructure as major constraints on AI computing deployment.
Musk said SpaceX was applying manufacturing capabilities developed for its rocket operations to help produce turbine components needed for data center infrastructure. He noted that turbine manufacturers currently face delays of 12 to 18 months in obtaining certain metal components.
SpaceX Plans Up to $40 Billion in Fourth-Quarter Spending
SpaceX recorded $19.6 billion in capital expenditures during the third quarter, reflecting investment in data centers, computing infrastructure, and its Starship rocket program. Chief Financial Officer Bret Johnsen expects spending to increase to between $35 billion and $40 billion in the fourth quarter.
The company’s Starlink satellite internet service reached 13.6 million consumer subscribers during the quarter. Musk also said increasing use of AI agents could contribute to additional demand for internet connectivity.
SpaceX is preparing another Starship test flight in November, with plans to attempt recovery of both the first-stage booster and second stage. Musk said recovering both sections would represent an important technical achievement, although reusing them on subsequent flights remains the company’s objective.
SpaceX Returns to Quarterly Profitability
SpaceX reported $4.4 billion in quarterly net income, compared with a $1.1 billion loss a year earlier. However, the company still recorded a cumulative net loss of $413 million during the first nine months of 2026.
Musk projected that SpaceX could reach an annualized recurring revenue rate between $500 billion and $1 trillion by the end of 2027, largely driven by its AI business. Johnsen provided a nearer-term forecast of $33 billion to $37 billion in total revenue for the first quarter of 2027.
Featured image credits: Wikimedia Commons
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