SPCX Rises After Hours On AI-Driven Revenue Surge And First Profit Since IPO

• AI-related revenue led the way at $7.56 billion, surpassing the connectivity business for the first time.
• Capital spending stayed heavy at roughly $19.6 billion, mostly for AI infrastructure, leaving free cash flow negative.
• Up to 1.3 billion SpaceX shares will become freely tradable on Thursday, marking the largest single release under the staggered 180-day lockup that has restricted most employee and early-investor holdings since the June IPO.

Shares of SpaceX (SPCX) rose 2% after hours on Tuesday after the company reported third-quarter revenue that beat Wall Street estimates and its first quarterly profit after its June IPO, thanks to growth in its superintelligence segment.

The company reported third-quarter revenue of $14.58 billion, compared to an estimated $13 billion, and earnings of $0.35 a share, against an expected $0.13.

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Revenue Surge And Profitability

Sales jumped 161% from a year earlier and nearly doubled from the $7.8 billion posted in the second quarter. The quarter also marks the company’s first profitable quarter since its June Nasdaq listing. Net income reached about $4.4 billion, versus a  Q2 loss of $541 million, while adjusted core profit climbed to $8.81 billion.

AI Beats Starlink Segment Revenues

AI-related revenue led the way at $7.56 billion, surpassing the connectivity business for the first time, partly owing to the company’s acquisition of Cursor, which was completed in August for an implied equity value of about $60 billion, in addition to cloud service deals.

Starlink connectivity sales totaled $5.25 billion, and the space launch segment contributed $1.77 billion.

Capital spending stayed heavy at roughly $19.6 billion, mostly for AI infrastructure, leaving free cash flow negative.

“We delivered another strong quarter in Q3. Revenue grew an impressive 161% year-over-year, fueled by continued momentum in Connectivity and a clear inflection in our Super Intelligence business. The combination of our launch leadership, recurring Starlink revenue, and the significant expansion of our SI infrastructure continues to drive meaningful operating leverage,” CFO Bret Johnsen said.

What’s Next For SpaceX?

Up to 1.3 billion SpaceX shares become freely tradable on Thursday, October 22, marking the largest single release under the staggered 180-day lockup that has restricted most employee and early-investor holdings since the June IPO. The tranche represents about 28% of the roughly 4.7 billion shares in the main lockup pool; a further 328 million shares are scheduled to unlock on October 24. Past staged releases have produced mixed stock reactions.

How Did SPCX Retail Traders React?

On Stocktwits, retail sentiment around SPCX stock jumped from bearish to bullish territory over the past 24 hours, while message volume rose from normal to high levels.

A Stocktwits user expressed disappointment at the muted share move after the positive earnings report.

Another pinned the muted share reaction to the stock being overvalued.

SPCX closed Tuesday at about $148, higher than its IPO price of $135 but below its all-time highs near $226. 

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