Is SpaceX Stock a Buy After Its Latest Earnings Report?

On October 20, SpaceX released its third-quarter earnings report, reporting an impressive surge in revenue to $14.6 billion, marking a staggering 161% year-over-year increase. Earnings per share (EPS) of $0.35 exceeded analysts' expectations by $0.19, a significant improvement from the $0.36 net loss per share the previous year.

Although the aerospace and AI company operates in multiple segments, Starlink's connectivity business emerged as the most profitable, accounting for 47% of its total revenue in the first nine months of 2026. However, the company's adjusted EBITDA margins paint an even more promising picture, with Starlink's robust growth and rapidly expanding subscriber base, totaling 13.6 million consumer subscribers and approximately 11,100 satellites in orbit.

The company's Super Intelligence (SI) segment, encompassing AI entities like xAI, Grok, X, and Cursor, continues to expand, securing substantial infrastructure deals with major corporations such as Anthropic and Alphabet's Google. Despite the slower growth of SpaceX's space segment, the development of Starship, the largest rocket ever built, is anticipated to reignite growth in the future.

Analysts forecast SpaceX's revenue to soar to $48.8 billion in 2026 and reach an astounding $177.6 billion in 2027, with net income projections of $3.6 billion and $51.8 billion, respectively. This translates to earnings of $0.21 per share in 2026 and $3.87 per share in 2027. With such optimistic projections, SpaceX's stock appears relatively affordable at its current valuation of $150, trading 11% above its IPO price of $135 and at 38 times next year's earnings.

While the company's stock may not be a buy at its current price, it is certainly intriguing enough to warrant a starter position for investors seeking exposure to SpaceX's burgeoning business ventures.