SpaceX earnings live updates: First report since IPO, Starlink and AI in focus

SpaceX has released its fiscal second-quarter earnings after the market closed on Tuesday, marking its debut earnings report since its record-breaking IPO in June. Analysts are eagerly awaiting the results, particularly focusing on Starlink and AI developments within the company. The company's earnings per share may not align with analysts' estimates, as initial reports often contain unexpected adjustments.

SpaceX's stock has experienced a 24% drop since its June 12 opening at $150, losing nearly $500 billion in market capitalization. The shares have also fallen almost 50% from their June 16 peak.

In 2025, SpaceX reported a $4.9 billion loss, primarily due to significant investments in artificial intelligence infrastructure. The company merged with Musk's xAI in February, with the aim of building data centers in space. However, even the launch business, which relies on large contracts from NASA, is experiencing losses. Most of SpaceX's revenue and only source of profit in 2025 came from its connectivity segment, Starlink, a satellite internet service sold to consumers, government, and military agencies.

Analysts expect revenue from SpaceX's three segments, according to StreetAccount. The company's AI business, expanded through its merger with xAI, brings in data centers, Grok AI models, a chatbot, and social network X (formerly Twitter). SpaceX announced a deal to acquire Cursor AI for approximately $60 billion, with the transaction expected to close in the third quarter. Capital expenditures for the first quarter of the year totaled $10.1 billion, with $7.7 billion allocated to AI expenses.

Phillip Capital, an analyst firm, recommended investors sell SpaceX shares, setting a price target of $75, which represents a 35% drop from Monday's closing price. Only the second firm to rate the stock a sell, after Morningstar. Analysts cited the company's substantial losses and negative cash flows expected until at least 2030.

Among the more than three dozen analyst estimates tracked by FactSet, Phillip becomes the second firm to recommend a sell rating. Investors closely watching Starlink, which provides global high-speed internet coverage using over 10,200 satellites in low Earth orbit, will find this segment to be SpaceX's only profitable business in 2025.

The company generated $11.39 billion in revenue and $4.42 billion in income last year. SpaceX raised Starlink subscriber rates earlier in June, introducing a $10 monthly kit fee and increasing rates for various subscription levels. The company reported surpassing 12 million Starlink subscribers in June. Satellite services industry expert Tim Farrar advises investors to monitor Starlink subscriber net adds and changes in average revenue per user.