SpaceX tops third-quarter estimates as AI revenue surges and spending climbs
?s fast-growing AI business helped lift third-quarter revenue 161% to $14.58 billion, far ahead of forecasts, while the company’s investment bill remai...
SpaceX’s fast-growing AI business helped lift third-quarter revenue 161% to $14.58 billion, far ahead of forecasts, while the company’s investment bill remained almost as large as its sales. The results give investors a striking measure of how quickly Elon Musk’s company is turning heavy spending on computing infrastructure into revenue.
The company reported the results on Tuesday after the market closed. Revenue topped Bloomberg’s $12.7 billion consensus estimate, while adjusted EBITDA reached $8.81 billion, beating expectations of $6.59 billion. SpaceX shares rose about 2% after the release; Reuters reported a 2.5% gain in extended trading.
AI becomes a major growth engine
Net income was $4.4 billion, compared with a $1.1 billion loss a year earlier. Earnings per share were reported at 35 cents in the AP snapshot, above estimates ranging from 10 to 15 cents. Reuters, citing IBES calculations, put earnings at 45 cents a share and compared that with a 13-cent forecast.
AI revenue climbed more than ninefold to $7.6 billion, Reuters reported. SpaceX said it added $6.7 billion in year-over-year revenue from what it called “SI solutions and infrastructure,” citing cloud-service agreements, its acquisition of Cursor and sales tied to its models and software, including Grok Bot.
“We are in an inflection moment for SpaceX across launch, connectivity and superintelligence,” Musk told investors, according to Reuters.
Spending remains a key test
Capital expenditures reached $19.59 billion, just below the $19.6 billion estimate cited in the earnings live coverage. Spending on AI capital projects was $16.44 billion, below the $16.9 billion forecast. The company’s total quarterly investment still exceeded its revenue, keeping the scale and returns of its infrastructure buildout in focus.
Starlink and SpaceX’s broader connectivity operations have helped fund Musk’s AI ambitions. The company’s software effort, including Grok, has faced competition from OpenAI, Anthropic and Google, Reuters reported.
Musk also told analysts that SpaceX and Tesla had formed independent special committees to discuss a possible merger, saying the idea was raised at shareholders’ request. Investors will be watching for further details on both that proposal and how SpaceX’s large AI investments translate into sustained revenue.
Source: finance.yahoo.com
