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

SpaceX released its fiscal second-quarter earnings report on Tuesday following its record IPO in June, marking the first earnings call for Elon Musk's reusable rocket maker with Wall Street. The report, filled with adjustments and unexpected changes, saw the company's stock plummet by 24%, erasing nearly $500 billion in market value since its opening price of $150 on June 12.

Last year, SpaceX reported a loss of $4.9 billion, primarily due to heavy investments in artificial intelligence infrastructure, including a merger with xAI in February to build data centers in space.

The company's revenue for the year was dominated by its Starlink satellite internet service, which remains its sole profitable business. Analysts anticipate revenue for SpaceX's three segments – rocket science with Starship, the path to resusability, and the AI business – during its conference call beginning at 4:30 p.m. ET. CEO Elon Musk and COO and President Gwynne Shotwell will face scrutiny regarding the company's progress, the effectiveness of their strategies, and areas that fell short of expectations.

SpaceX had previously stated its intention to prioritize growth and investment in AI applications and compute infrastructure during its IPO prospectus. In merging with xAI, SpaceX integrated xAI's data centers, Grok AI models, chatbot, and social network X. The company allocated $7.7 billion to AI expenses in the first quarter, which analysts expect to reach $13.2 billion for the second quarter, according to FactSet.

Phillip Capital, an investment firm, recommended selling SpaceX shares, setting its price target at $75, a 35% decrease from Monday's closing price. Only the second firm to recommend a sell, the other being Morningstar, cited SpaceX's significant losses and projected cash flow deficits until at least 2030. Starlink, providing global high-speed internet using more than 10,200 satellites in low Earth orbit, generated revenue of $11.39 billion in 2025, accounting for 61% of total sales and emerging as the only profitable segment for SpaceX in 2023.

The company raised Starlink subscription rates in June, introducing a $10 monthly kit fee for terminal rentals and increasing prices for various subscription levels. Starlink's subscriber count surpassed 12 million, according to a SpaceX post on X.