SpaceX (SPCX) has made headlines once again, as its stock surged approximately 5% following an earnings report that notably exceeded market expectations. The company reported a third quarter revenue of $14.58 billion, outpacing the $12.7 billion forecast from Bloomberg and marking an impressive 161% increase year-over-year.
In terms of earnings per share (EPS), SpaceX posted $0.35, surpassing the anticipated $0.15. Adjusted EBITDA also showcased robust growth, reaching $8.81 billion compared to the consensus estimate of $6.59 billion. These results reflect not only strong sales but also disciplined cost management, as capital expenditures (capex) for the quarter were largely in line with predictions, amounting to $19.59 billion against an expected $19.6 billion.
However, in a surprising twist, the company hinted at significantly higher spending plans for the upcoming quarter, with capex projected between $35 billion and $40 billion—far exceeding Wall Street’s expectations of roughly $20 billion. This ambitious spending plan indicates SpaceX’s confidence in its growth trajectory, particularly in the rapidly evolving AI sector.
Guidance for the first quarter of 2027 was equally bold, with revenue projected to be between $33 billion and $37 billion, outstripping the consensus estimate of $22 billion. The company is clearly positioning itself for accelerated growth, especially in light of the increasing demand for AI computing resources.
During the earnings call, CEO Elon Musk emphasized the rising prices for AI compute services, noting that hyperscalers are actively seeking to rent SpaceX’s capacity. “I don’t think we’re going to have a demand issue here,” Musk stated, a comment that likely contributed to the positive market reaction.
This quarter’s results and forward guidance have investors buzzing, especially since SpaceX also highlighted an additional $6.7 billion in incremental solutions and infrastructure revenue. The company credits its success to strategic cloud services agreements, the recent acquisition of Cursor, and advancements in software applications such as Grok Bot.
Following the earnings release, SpaceX shares initially rose by about 2% in after-hours trading, with gains expanding to about 5% after the conclusion of the conference call. Prior to the announcement, the stock had closed at $147.79, reflecting a slight decline of 0.11% on the day.
Al Root from Barron’s praised the earnings report, stating it was a great quarter that exceeded both sales and earnings estimates. This sentiment resonates with many investors, regardless of their personal views on Musk or the AI sector.
As SpaceX continues to push boundaries in the aerospace and technology sectors, its latest financial performance reinforces its status as a formidable player in the market, making it a stock to watch in the coming months.
