Hajra Naz
SpaceX reported strong financial results for the third quarter. Its data centers and Grok agents performed better than expected. The company is shifting away from its space roots. Artificial intelligence now accounts for 52 percent of total revenue.
CEO Elon Musk leads the tech conglomerate. Regulatory filings on Tuesday showed third-quarter revenue reached $14.6 billion.
Growth occurred across all operating segments. The primary driver was the newly renamed “Super Intelligence” division. That business line generated $7.5 billion in revenue. Earnings came from the recently acquired Cursor coding tool, the Grok bot, and a fast-growing neocloud operation. The neocloud infrastructure now commands 1.7 gigawatts of compute power.
The AI division produced $431 million in net profit. Profits would have been higher without $1.2 billion in one-time stock-based compensation costs linked to the Cursor buyout.
Additional revenue came from two external sources. Bitcoin price recoveries contributed roughly $1 billion. Unspecified related-party income, likely tied to external corporate investments, also boosted the totals.
Read More: Tesla reveals SpaceX-powered Roadster that flies with style
Revenue growth coincided with heavy spending. Total capital expenditures reached $19.6 billion during the quarter. SpaceX is currently constructing a massive second data center known as Colossus II. The firm is also increasing investments in Starship. Executives view the heavy-lift rocket as essential for deploying new Starlink satellites and building future orbital data centers.
Chief Financial Officer Bret Johnsen provided forward guidance. He stated that the company expects to spend between $35 billion and $40 billion on new capital investments in the fourth quarter.
Musk discussed these financial results during a livestreamed investor call. He noted that he currently spends four days a week in Memphis, Tennessee. That city hosts the Colossus II site, where he is personally overseeing the data center launch.
Musk explained his strategic focus on physical infrastructure. He argued that the main bottleneck for super intelligence is not silicon chips. Instead, the real limits involve power supply, cooling capacity, and physical data center construction.
He assigned a dedicated team of SpaceX engineers to solve those infrastructure challenges. Musk offered a colorful comparison regarding their execution speed. He likened the engineering team to the New York Yankees playing in a Little League game. He claimed it is an unfair matchup that allows SpaceX to build power and cooling systems much faster than any competitor.
Read More: Google Says SpaceX’s Starship Needs 1,800 Launches for Space Data Centers
Supply chain bottlenecks provide a clear example of this advantage. Turbine manufacturers required for data center power generation typically face 12 to 18-month delays. Those delays stem from a lack of specialized metals needed for turbine blades and vanes.
SpaceX solved this bottleneck internally. The company utilized advanced metal casting techniques originally developed for aerospace rocket manufacturing. They now produce those vital turbine components themselves, securing power equipment much faster than industry norms.
Musk also updated stakeholders on space hardware testing. The next test flight of the Starship rocket is scheduled for November. During that flight, SpaceX will attempt to catch and recover both the first-stage booster and the second-stage vehicle.
Recovering both segments will mark a massive technological milestone, according to Musk. However, he emphasized that the ultimate operational milestone will involve successfully reflying both recovered stages.
Meanwhile, subscriber numbers for the Starlink satellite internet network continue to climb. Total consumer connections reached 13.6 million. Musk predicted that the rise of autonomous AI agents will drive even higher demand for global internet connectivity.
Strong revenue growth helped offset heavy capital spending, returning the company to overall profitability. SpaceX posted a net income of $4.4 billion for the quarter. This represents a major turnaround from a $1 billion loss recorded during the same period last year.
Read More: SpaceX Plans to Send Starship Into Orbit for the First Time on September 22
Despite the quarterly profit, the company faces a deficit for the wider fiscal period. During the first nine months of the year, SpaceX posted a cumulative net loss of $413 million.
Musk maintained an extremely bullish outlook for the Super Intelligence segment. He projected that annualized recurring revenue for the division will reach between $500 billion and $1 trillion by the end of 2027.
On a shorter horizon, CFO Johnsen offered concrete financial projections. He forecasted total revenue for the first quarter of 2027 to land between $33 billion and $37 billion.
