SpaceX Reports Record Q3 Revenue Amid Massive Capital Spending

Space Exploration Technologies Corp. reported record financial results for the third quarter of 2026, with revenue reaching approximately $14.6 billion. This represents a 161% increase year-over-year, doubling previous earnings expectations and beating analyst estimates of $12.7 billion. Earnings per share were $0.35, exceeding forecasts by $0.20.

The company's growth was driven by its Super Intelligence segment, which now generates nearly 52% of total revenue, and Starlink, which contributed 85% of operating income. Despite these gains, the company faces severe capital challenges. Third-quarter capital expenditure reached $19.6 billion, exceeding quarterly revenue and contributing to a negative free cash flow of approximately $35 billion for the first nine months of the year.

Looking ahead, the company guided for a significant increase in spending, forecasting $35 billion to $40 billion in capital expenditures for the fourth quarter. These costs support aggressive timelines for rocket reusability, Starlink broadband, and AI compute infrastructure, including a reported $100 billion new Starbase in Louisiana. CFO Bret Johnson stated that the company is engaging with various pools of debt capital to fund this growth, citing a strong balance sheet and investment-grade status. Following the report, a 28% share unlock increased total float liquidity to 76%, introducing potential near-term selling risk for the stock.