SpaceX's profit more than doubled expectations. The annual revenue target is $1 trillion.

SpaceX's net income in the third quarter reached $4.4 billion, according to the report, while Wall Street had forecast $1.88 billion, Bloomberg reports. This is the first time the company has reported a quarterly profit: last quarter, it posted a loss of $541 million, and a year ago, the loss exceeded $1 billion.

Revenue increased 2.6-fold to $14.58 billion, compared with market estimates of $12.87 billion.

SpaceX CFO Bret Jonsen confirmed during a conference call following the release of the quarterly report that the company still expects to reach annual recurring revenue (Annual Recurring Revenue, ARR) of $100 billion by the end of December. SpaceX announced this target last quarter. This metric reflects how much the company could earn over the coming year if current revenue levels persist, Bloomberg explains.

By the end of 2027, ARR will range from $500 billion to $1 trillion, said SpaceX CEO Elon Musk. The lower end of this forecast means that the company will need to generate about $42 billion in revenue next December, while the upper end implies about $83 billion, the agency calculated.

SpaceX's revenue in the first quarter of 2027 will range from $33 billion to $37 billion, Jonsen said. Analysts had expected $23.4 billion, according to Bloomberg.

Capital expenditures were virtually in line with the agency's expectations—$19.59 billion compared to a consensus estimate of $19.6 billion—but exceeded the average estimate of analysts surveyed by MarketWatch by $1.5 billion.

Following the release of the report, the company's shares rose 2.2% in after-hours trading and accelerated their gains to 5.2% during the conference call.

For the first time, the company’s largest source of revenue was not Starlink, but AI, which accounted for 51% of sales. This segment posted 830% year-over-year growth and generated $7.56 billion, compared with $5.25 billion for the Connectivity segment, which includes Starlink. This is a rather rapid turnaround, notes Bloomberg.

The growth of the AI business was largely driven by new contracts to provide AI computing power through SpaceX data centers, as well as the acquisition of the startup Cursor, which was completed last quarter, and—to a lesser extent—the development of its own AI products, including Grok Bot. SpaceX also continued to expand its computing infrastructure: as of September 30, its total installed capacity reached 1.7 gigawatts. Among the company’s major cloud service customers are Google and Anthropic.

However, Connectivity remains SpaceX’s most profitable segment, the agency notes. Its revenue increased by 69% compared to last year, and operating profit nearly doubled. The company attributed this growth to the active onboarding of corporate and government clients, as well as continued growth in the number of Starlink residential users. The network’s subscriber base expanded by 13% year-over-year, reaching 13.6 million people.

This news story is being updated.

This article was AI-translated and verified by a human editor