SpaceX Stock Surges After Record Earnings

SpaceX shares rocketed higher this morning as Wall Street scrambled to revise its outlooks following a blowout third quarter that shattered expectations. The surge in price targets comes after the company reported earnings that far outpaced consensus, sending the stock jumping roughly 8 percent in premarket trading on October 21. This sharp movement follows a close at $147.79 on Tuesday, October 20, as investors digested the significant beat in both revenue and profitability.

The financial details behind the rally are substantial. SpaceX generated $14.6 billion in revenue, a 161 percent increase year-over-year that comfortably exceeded the $12.7 billion expected by analysts. More impressively, the company swung from a loss in the same period last year to a net profit of $4.4 billion. Adjusted EBITDA reached $8.8 billion, signaling a major shift in the company’s operational efficiency and bottom-line strength.

The growth was driven primarily by the Super Intelligence division, which contributed approximately $7.6 billion to the top line. This segment grew nearly 830 percent year-over-year, becoming the largest revenue contributor for the business. The Connectivity segment also performed well, delivering $5.2 billion in revenue. This success was fueled by strong subscriber additions, which expanded the Starlink consumer base to 13.6 million users globally.

During the earnings call, CEO Elon Musk and CFO Bret Johnsen provided guidance that further fueled investor confidence. They outlined first-quarter 2027 revenue projections between $33 billion and $37 billion, a figure significantly higher than the $22 billion analysts had previously modeled. Additionally, the company announced fourth-quarter capital expenditure plans ranging from $35 billion to $40 billion. This spending is heavily focused on AI compute infrastructure, with key sites located in Memphis and Southaven.

Management is targeting 2.5 to 3 gigawatts of nameplate compute capacity by the end of this year. They have also discussed pathways to reach 13 gigawatts or more by the end of 2027. Musk emphasized relentless demand from hyperscalers, noting that current compute pricing supports payback periods of less than a year, with some potentially as short as six months. This rapid return on investment has been a key factor in the bullish sentiment surrounding the stock.

The market response has been immediate and decisive. JPMorgan more than doubled its price target to $500 from $240, maintaining an Overweight rating. Cantor Fitzgerald raised its target to $345, while Barclays and Morgan Stanley both set targets at $300. Other major firms, including Citi, UBS, TD Cowen, Wells Fargo, and Clear Street, also adjusted their targets upward, citing the strong quarterly performance and accelerating AI expansion as primary drivers.

Beyond the financials, the company highlighted recent orbital successes for Starship and the deployment of V3 satellites. Discussions also touched on rapid adoption of the Grok Bot and spectrum expansion plans. Notably, special committees were formed to explore a possible combination with Tesla. These developments, combined with the elevated spending plans, have solidified analyst conviction in SpaceX’s trajectory across launch, connectivity, and AI, despite the significant capital outlays required for future growth.