# SpaceX Q3 2026 Earnings Report On **October 20, 2026**, [[SpaceX]] reported its first full quarter with its AI business, the Cursor coding tool and X all counted inside the company. Revenue was **$14.6 billion, up 161%** from a year earlier, and the company made a **$4.4 billion** profit after a $541 million loss the quarter before. The headline change: **SpaceX now earns more from AI than from Starlink.** The full quarterly report (10-Q) followed on October 22. ## The numbers | Line | Q3 2026 | Q2 2026 | Q3 2025 | |---|---|---|---| | Total revenue | **$14.575B** | $7.814B | $5.576B | | — Super Intelligence (AI) | **$7.560B** | $2.561B | $0.813B | | — Connectivity ([[Starlink]]) | $5.248B | $4.291B | $3.097B | | — Space (launch) | $1.767B | $0.962B | $1.666B | | Operating income | $2.791B | −$0.143B | −$0.273B | | Net income | **$4.4B** | −$0.541B | −$1.1B | | Capital spending | **$19.593B** | $18.369B | $6.880B | | — of which AI | $16.444B | $15.828B | $4.760B | Source: SpaceX earnings release (SEC Form 8-K, Exhibit 99.1). Other figures from the release and the 10-Q: - **Starlink** consumer subscribers reached 13.6 million (The Next Web, citing the release). - **The AI unit made money** for the first time: $431 million of operating income, after a $1.257 billion loss in the second quarter. It rents data-centre computing to outside customers, including [[Anthropic]] and [[Google]], and now includes Grok, X and [[Cursor]]. - **Cursor** was bought for stock at an implied $60 billion and the deal closed August 14 (see [[SpaceX-Cursor Acquisition]]). - **Starship** Flight 14 is described as the first "revenue-generating" Starship mission, because it carried 26 of SpaceX's own Starlink satellites. - **Bitcoin:** SpaceX still holds 18,712 [[Bitcoin]], worth $1.573 billion at September 30. - **Computing capacity** reached 1.7 gigawatts. ## Where the profit came from SpaceX made $2.8 billion from operations. The rest of the $4.4 billion came from below the operating line: $873 million of interest income, $1.025 billion of "other income," and a tax benefit, minus $675 million of interest expense. More than half of that "other income" was a **$561 million paper gain** on SpaceX's stake in [[The Boring Company]], Musk's tunnelling firm, after Boring raised money at a higher price in September. No cash changed hands. One Musk company marked up its holding in another, and the result showed up as profit. ## The insiders in the footnotes The 10-Q's related-party note lists three arrangements with companies tied to SpaceX's leaders: - **About $12.9 billion owed to [[Valor Equity Partners]]**, the fund of SpaceX director [[Antonio Gracias]], for AI hardware leases treated as loans, with $351 million of interest in the quarter. See [[SpaceX-Valor AI Hardware Lease Financing]]. - **$151 million of [[Tesla]] Megapack batteries** bought in the quarter. - **The Boring Company gain** above. The filing also says SpaceX is still evaluating a possible combination with Tesla, with no agreement reached. ## Why it matters The second quarter showed a broadband utility funding an AI build-out several times its size. The third quarter shows the build-out starting to pay: the AI segment is now the biggest business by revenue and has turned an operating profit. The cost is still enormous, at $16.4 billion of AI spending in a single quarter, and part of it is financed by a board member's fund. The quarter's headline profit leans on a paper gain from another Musk company. ## Connects to - [[SpaceX Q2 2026 Earnings Report]] — the quarter before - [[SpaceX-Valor AI Hardware Lease Financing]] — how the AI capital spending is financed - [[SpaceX-Cursor Acquisition]] — the $60B stock deal now inside the AI segment - [[SPCX First Lock-Up Expiration]] — the largest unlock of insider shares came two trading days after this report - [[Tesla-SpaceX Terafab Commitment]] - [[SpaceX Investors]] — ownership, debt and float ## See Also - [[SpaceX]] · [[Starlink]] · [[Elon Musk]] - [[SpaceX Events]] · [[SpaceX Watch Log]] - [[Events Hub]]