Spacex Q3 Revenue Surges 161 Pc To $14.58 Billion Musk Eyes $1 Trillion Mark By 2028

(MENAFN- IANS) New Delhi, Oct 21 (IANS) Elon Musk-backed SpaceX has reported quarterly results, powered by explosive growth in its artificial intelligence business and rising demand for data-centre capacity with revenue rising 161 per cent to $14.58 billion year-on-year.

Following the earnings, the company jumped more than 8 per cent in extended trading.

The company's AI unit -- now branded as Super Intelligence -- generated $7.56 billion in revenue during the quarter, nearly 10 times higher than a year ago.

The business has emerged as a major provider of compute infrastructure and data-centre capacity to AI developers including Anthropic, Alphabet's Google and Reflection AI.

Moreover, capital expenditure nearly tripled from a year ago to $19.6 billion as the company continued expanding its computing capacity.

Chief Financial Officer Bret Johnsen said fourth-quarter capital spending is expected to range between $35 billion and $40 billion.

Johnsen also said the company expects first-quarter 2027 revenue of between $33 billion and $37 billion, significantly above analysts' average estimate of $22.2 billion, citing improved visibility into its growing pipeline of compute contracts.

Meanwhile, the company reported net income of $4.4 billion compared with a loss of about $1.1 billion a year earlier.

The AI business also turned profitable during the quarter as xAI reported net income of $431 million, compared with a loss of $1.7 billion in the year-earlier period.

SpaceX's connectivity segment remained a key contributor to performance. Revenue from the division, which includes Starlink, rose 69 per cent from a year ago to $5.25 billion.

In addition, Starlink subscribers increased to 13.6 million from 12 million a year earlier, highlighting continued demand for the satellite internet service.

During the earnings call, Musk also said a merger between SpaceX and electric-vehicle maker Tesla would be a good idea and confirmed that special committees at both companies had been formed to evaluate the proposal.

Musk also said that he expects annual recurring revenue to reach between $500 billion and $1 trillion as demand for AI-related infrastructure accelerates.

"As crazy as this sounds, $1T in SpaceX revenue in 2028 is no longer impossible," he posted in a post on X.

SpaceX shares closed regular trading at $147.79 on Tuesday before rising more than 8 per cent after the results. The after-hours rally also lifted Nasdaq futures, reflecting the stock's growing weight in the technology-heavy index.

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