<a href="https://www.mid-day.com/business/business-news/article/elon-musk-becomes-worlds-first-trillionaire-after-spacex-shares-jump-30-percent-on-nasdaq-debut-23634906" target="_blank" rel="none noopener">Elon Musk-backed SpaceX</a> has reported quarterly results, powered by explosive growth in its artificial intelligence business and rising demand for data-centre capacity with revenue rising 161 per cent to USD 14.58 billion year-on-year in the third quarter.&nbsp;
Following the earnings, the company's shares jumped more than 8 per cent in extended trading.
The company's AI unit, now branded as Super Intelligence, generated USD 7.56 billion in revenue during the quarter, nearly 10 times higher than a year ago.
The business has emerged as a major provider of compute infrastructure and data-centre capacity to AI developers including Anthropic, <a href="https://www.mid-day.com/tech/tech-news/article/sundar-pichai-could-earn-up-to-usd-692-million-in-new-google-alphabet-pay-package-23619770" target="_blank" rel="none noopener">Alphabet's Google</a> and Reflection AI.
Moreover, capital expenditure nearly tripled from a year ago to USD 19.6 billion as the company continued expanding its computing capacity.
Chief Financial Officer Bret Johnsen said fourth-quarter capital spending is expected to range between USD 35 billion and USD 40 billion.
Johnsen also said the company expects first-quarter 2027 revenue of between USD 33 billion and USD 37 billion, significantly above analysts' average estimate of USD 22.2 billion, citing improved visibility into its growing pipeline of compute contracts.
Meanwhile, the company reported net income of USD 4.4 billion compared with a loss of about USD 1.1 billion a year earlier.
The AI business also turned profitable during the quarter as xAI reported net income of USD 431 million, compared with a loss of USD 1.7 billion in the year-earlier period.
SpaceX's connectivity segment remained a key contributor to performance. Revenue from the division, <a href="https://www.mid-day.com/business/business-news/article/starlink-responds-to-reliance-ready-to-connect-india-with-high-speed-internet--23655566" target="_blank" rel="none noopener">which includes Starlink,</a> rose 69 per cent from a year ago to USD 5.25 billion.
In addition, Starlink subscribers increased to 13.6 million from 12 million a year earlier, highlighting continued demand for the satellite internet service.
During the earnings call, Musk also said a merger between SpaceX and electric-vehicle maker Tesla would be a good idea and confirmed that special committees at both companies had been formed to evaluate the proposal.
Musk also said that he expects annual recurring revenue to reach between USD 500 billion and USD 1 trillion as demand for AI-related infrastructure accelerates.
"As crazy as this sounds, USD 1T in SpaceX revenue in 2028 is no longer impossible," he wrote in a post on X.
SpaceX shares closed regular trading at USD 147.79 on Tuesday before rising more than 8 per cent after the results. The after-hours rally also lifted Nasdaq futures, reflecting the stock's growing weight in the technology-heavy index.
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The AI unit Super Intelligence, generated USD 7.56 billion in revenue during the third quarter ended September

SpaceX Q3 revenue surges 161 per cent to USD 14.58 billion

Rupee rises 29 paise to 94.62 against US dollar amid RBI measures, foreign investment in Jio IPO

The company's AI unit, now branded as Super Intelligence, generated USD 7.56 billion in revenue during the quarter, nearly 10 times higher than a year ago

SpaceX Q3 revenue surges to USD 14.58 billion; Musk eyes USD 1 trillion mark by 2028

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