SpaceX Q3 Sales Rose 161% in Q3. Here's What Starlink, Starship, and AI Results Reveal About the Stock.
SpaceX delivered a stronger quarter than I expected. But its accelerating AI spending leaves shareholders with a very expensive question.
SpaceX's third-quarter earnings report surpassed market expectations, with revenue reaching $14.58 billion and diluted earnings per share at $0.35. The company's top lines, both sales and earnings, outperformed Wall Street's predictions. The Starlink segment demonstrated solid performance, with average revenue per user increasing to $69 per month from $66 last quarter, indicating a steady growth trend.
For Starship, the next-generation reusable rocket, SpaceX anticipates its next flight in November, aiming to catch both the booster and upper stage upon return to Earth. Additionally, the company plans to attempt in-orbit refueling early in the new year. These developments suggest progress in making Starship a reliable and reusable vehicle.
In the AI business, revenue grew to $7.6 billion, with operating profit at $431 million. The acquisition of Cursor contributed significantly to this growth, although operating profit was negatively impacted by stock compensation expenses related to Cursor. While AI expenditures increased modestly, management expects them to rise further in the upcoming quarter, primarily driven by SpaceX's Super Intelligence initiatives.
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