Musk’s SpaceX turns profit as AI cloud deals pay off

SpaceX has reported its first quarterly profit, recording a net income of $4.4 million, or 35 cents a share. This marks a turnaround from a net loss of $541 million in the second quarter and a $5.5 billion loss a year ago, according to Fortune. Punch reported the company posted a net income of $4.4 billion.

Third quarter revenue rose 161% year-over-year to $14.6 billion, surpassing the $12.86 billion expected by analysts, Fortune reported. The company's AI segment, renamed “Super Intelligence,” generated $7.56 billion in revenue, which nearly tripled from the $2.56 billion reported in the second quarter. This segment includes computing capacity leased to X, Grok, Google, and Anthropic.

Connectivity revenue, primarily from Starlink, increased 69% to $5.25 billion, while space revenues rose 6% to $1.77 billion. Fortune noted that Starlink added 1.6 million consumer subscribers, a figure that fell below the 2.29 million predicted by analysts. Operating income for the quarter was $2.79 billion.

Brief written by urgent.news from Punch, Fortune — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.