SpaceX Stock Surges on Record Earnings

SpaceX shares jumped in early premarket trading on Tuesday, October 21, following a strong third quarter report released after the market closed on Monday, October 20. The stock closed at $147.79 on the 20th and climbed roughly 8 percent in the premarket session as investors digested the new data. This immediate movement reflects a broader shift in market sentiment toward the company’s expanding business lines and financial performance.

The financial numbers from the third quarter of 2026 far exceeded expectations. SpaceX reported total revenue of $14.6 billion, marking a 161 percent year-over-year increase. This figure comfortably topped consensus estimates, which were hovering near $12.7 billion. The company also swung from a prior-year loss to a net profit of $4.4 billion. Adjusted EBITDA reached $8.8 billion, indicating improved operational efficiency and profitability across its various segments.

Elon Musk and CFO Bret Johnsen provided specific details during the earnings call that drove much of the analyst enthusiasm. They outlined revenue guidance for the first quarter of 2027 between $33 billion and $37 billion. This projection stands well above the roughly $22 billion that analysts had previously modeled. Additionally, management announced plans to spend between $35 billion and $40 billion on capital expenditures in the fourth quarter, with a primary focus on AI compute infrastructure in locations such as Memphis and Southaven.

The company’s Super Intelligence division emerged as the largest revenue contributor, generating approximately $7.6 billion. This segment grew nearly 830 percent year-over-year. The Connectivity segment, led by Starlink, contributed $5.2 billion to the total. Strong subscriber additions lifted the consumer base for Starlink to 13.6 million users. Management stated that they aim for 2.5 to 3 gigawatts of nameplate compute capacity by the end of this year, with pathways toward 13 gigawatts or more by the end of 2027.

Wall Street firms responded by rapidly raising their price targets. JPMorgan more than doubled its target to $500 from $240 while maintaining an Overweight rating. Cantor Fitzgerald increased its target to $345 from $246, and Barclays raised its target to $300 from $254. Citi moved its target to $240 from $200, while UBS adjusted its target to $230 from $210. TD Cowen raised its target to $224 from $200. Morgan Stanley kept its Overweight rating with a $300 target. Other firms including Wells Fargo and Clear Street also adjusted their targets higher, reflecting greater conviction in the company’s trajectory.

Analysts cited the strong quarterly print, accelerating AI compute expansion, Starlink progress, and recent Starship milestones as key drivers. Musk described relentless demand from hyperscalers, noting that compute pricing supports payback periods of less than a year and potentially as short as six months. The discussion also covered Starship’s recent orbital success, V3 satellite deployment, and rapid Grok Bot adoption. Special committees were formed to explore a possible combination with Tesla, adding another layer of strategic interest for investors tracking the company’s future direction.