SpaceX Corp (NASDAQ:SPCX) shares rose almost 3% in after-hours trading after the Elon Musk-led company reported a sharp swing to profit, driven by an 830% surge in revenue from its artificial intelligence business.
Third-quarter revenue more than doubled from a year earlier to US$14.6 billion, while net income reached US$4.4 billion compared with a US$541 million loss in the previous quarter.
The standout was SpaceX’s artificial intelligence division, where revenue jumped to US$7.6 billion following the February acquisition of Musk’s xAI business.
The unit, recently renamed SpaceX Super Intelligence, includes revenue from the Grok chatbot and the leasing of data centre capacity to other artificial intelligence companies.
Starlink subscriber growth surges
SpaceX’s connectivity business, which includes Starlink, generated US$5.2 billion in quarterly revenue, up almost 70% from a year earlier.
Starlink subscribers increased 88.9% to 13.6 million, underlining the rapid expansion of the satellite internet network.
Revenue from SpaceX’s traditional space operations rose 6% to US$1.8 billion.
Capital expenditure also accelerated sharply, reaching US$19.6 billion for the quarter compared with US$6.9 billion a year earlier as SpaceX increased spending across artificial intelligence, satellite and launch infrastructure.
SpaceX listed in June at US$135 per share and initially surged above US$225 before retreating below its IPO price.
The stock had since recovered to around US$148, giving the company a valuation of about US$2 trillion before the latest earnings release.
Ukraine restrictions put Starlink in spotlight
The results come as SpaceX faces scrutiny over restrictions imposed on Starlink services used by Ukraine.
The Wall Street Journal reported that Musk ordered a slowdown of a military-grade version of Starlink relied on by Ukrainian forces, citing US officials and people familiar with the matter.
The restrictions reportedly reduced connection speeds for some Ukrainian hardware, limiting the effectiveness of certain offensive and interceptor drones.
The report also said Musk and US President Donald Trump discussed the Starlink decision around the time the restrictions became public, placing further focus on the increasingly strategic role of SpaceX’s satellite network.