SpaceX Shares Surge as AI Revenue Boom and Starship Milestones Drive Analyst Upgrades

SpaceX is facing a significant re-rating in the market following the release of its third-quarter 2026 financial results, which revealed a massive surge in revenue driven by its new artificial intelligence division. The company’s stock, listed as SPCX on the NASDAQ, spiked in premarket trading on Tuesday, October 21, after the report was published the previous evening.

The most striking figure in the earnings report was the performance of the Super Intelligence division, which generated approximately $7.6 billion in revenue. This segment has now overtaken all other business units to become the company's largest revenue contributor, representing a year-over-year growth rate of nearly 830 percent. This performance was a key factor in the company posting total revenue of $14.6 billion, a 161 percent increase that significantly exceeded the consensus estimate of roughly $12.7 billion.

Profitability also saw a dramatic turnaround, with SpaceX reporting a net profit of $4.4 billion compared to a loss in the same period last year. Adjusted EBITDA reached $8.8 billion, signaling a shift toward sustained earnings power. The Connectivity segment, primarily Starlink, contributed $5.2 billion to the total, driven by strong consumer growth that lifted the subscriber base to 13.6 million users.

Management provided guidance that far surpassed Wall Street expectations, projecting first-quarter 2027 revenue between $33 billion and $37 billion. This forecast was considerably higher than the approximately $22 billion analysts had previously modeled. CEO Elon Musk and CFO Bret Johnsen also outlined fourth-quarter capital expenditure plans ranging from $35 billion to $40 billion, with the majority of funds directed toward AI compute infrastructure at facilities in Memphis and Southaven, Mississippi.

The aggressive investment strategy is aimed at scaling compute capacity to 2.5 to 3 gigawatts by the end of the year, with a long-term pathway to 13 gigawatts or more by the end of 2027. Musk noted that demand from hyperscalers remains relentless, with current compute pricing allowing for payback periods of less than a year, and in some cases, as short as six months.

In response to these results, a wave of investment firms raised their price targets for SpaceX stock. JPMorgan more than doubled its target to $500 from $240, maintaining an Overweight rating. Cantor Fitzgerald increased its target to $345 from $246, while Barclays raised its outlook to $300 from $254. Other notable adjustments included Citi moving to $240, UBS to $230, and TD Cowen to $224, all maintaining Buy or Overweight ratings.

Additional firms also joined the upgrade cycle, with Wells Fargo raising its target to $274 and Clear Street to $248. Morgan Stanley held its Overweight rating with a $300 target. Analysts broadly cited the strong quarterly performance, the rapid expansion of AI compute, and continued progress in Starship orbital successes as the primary drivers for these higher long-term growth projections.

Shares of SpaceX, which closed at $147.79 on Monday, jumped roughly 8 percent in early premarket trading on Tuesday as investors digested the new data. The average analyst price target has moved higher, reflecting increased conviction in the company’s trajectory across launch, connectivity, and AI, even as elevated spending levels remain a point of focus for some observers.