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SpaceX Reports Doubled Revenue Driven by AI Compute Deals and Starlink Growth
Key points
- Q2 2026 revenue increased 92% to $7.8 billion.
- AI division revenue grew to $2.56 billion, contributing nearly $2 billion to growth.
- Starlink revenue increased by $1.7 billion.
- Net losses reduced to $541 million from $1 billion year-over-year.
- Capital expenditures soared to $18.4 billion, mostly for AI, exceeding estimates.
- Nvidia's $5 billion Intel stock purchase generated nearly $25 billion.
- Nvidia holds a $21 billion stake in SpaceX.
- Nvidia divested all 1.1 million Arm shares.
- Nvidia's quarterly revenue exceeded $80 billion.
- Nvidia's net income approached $60 billion.
Strong Revenue Growth
SpaceX announced its first public quarterly earnings, reporting a 92% year-over-year increase in revenue, reaching $7.8 billion in the second quarter of 2026. This growth was primarily driven by its Starlink satellite internet service and new deals to provide computing power to AI companies such as Anthropic and Google.
The company's AI division, which includes the recently acquired xAI, generated $2.56 billion in revenue, a 247% increase from the previous year. Starlink also saw significant growth, with revenue increasing by $1.7 billion. Overall, the company reduced its net losses to $541 million, down from $1 billion in the same quarter last year.
Increased AI Investment and Capital Expenditure
A substantial portion of the company's financial activity involved significant capital expenditures, which surged sixfold to $18.4 billion in Q2 2026. Over 80% of this spending was directed towards artificial intelligence infrastructure, including building AI compute capacity and data centers. This figure exceeded analyst estimates of $13.22 billion.
SpaceX CFO Bret Johnsen stated that the company has an additional $6.7 billion in cloud services revenue under contract, set to begin ramping up in October. He also projected that the company could reach a $100 billion annualized revenue run-rate by the end of the year, particularly after fully integrating AI startup Cursor.
Investor Reaction and Stock Performance
Despite exceeding revenue and net loss estimates, SpaceX's stock fell by over 10% following the earnings report. Investors expressed concern over the higher-than-anticipated capital expenditures, particularly in AI, and the company's ability to generate returns from these investments. The stock closed at just over $125, below its $135 IPO price and significantly down from its peak of $225 shortly after its June 12 IPO.
Nvidia disclosed a $21 billion stake in SpaceX at the end of the second quarter, holding 122.8 million Class A shares. This investment originated from Nvidia's $10 billion contribution to xAI, which SpaceX later acquired. SpaceX has committed to exclusively using Nvidia chips for its AI data centers.
Shifting Business Focus
The earnings report highlighted a shift in SpaceX's business focus, with its AI and Starlink divisions becoming primary revenue drivers. The space sector of the business contributed just over 10% of the company's total revenue for the quarter. Elon Musk also made claims about Starlink's potential to deliver a majority of the world's internet within a decade, coinciding with the upcoming launch of V3 Starlink satellites with higher bandwidth.
Updates
- Nvidia's $5 billion Intel stock purchase generated nearly $25 billion.
- Nvidia holds a $21 billion stake in SpaceX.
- Nvidia divested all 1.1 million Arm shares.
- Nvidia's quarterly revenue exceeded $80 billion.
- Nvidia's net income approached $60 billion.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Nvidia's recent SEC filing shows its $5 billion investment in Intel stock yielded nearly $25 billion, and the company now holds a $21 billion stake in SpaceX. The filing also confirmed Nvidia's complete divestment from Arm stock, while maintaining investments in other strategic partners like Coherent, Nokia, and Synopsys.
Nvidia disclosed a $21 billion stake in SpaceX at the end of the second quarter, holding 122.8 million Class A shares. This investment originated from Nvidia's $10 billion contribution to xAI, which SpaceX later acquired, and highlights the financial ties between the companies, with SpaceX committing to exclusively use Nvidia chips for its AI data centers.
SpaceX went public on June 12 with a $1.75 trillion valuation, making it the largest IPO in history. The article argues that this valuation is inflated due to the recent merger with xAI and the reliance on hypothetical AI market growth, despite risk disclosures.
SpaceX's first public quarterly earnings statement reveals that the majority of its revenue comes from its Starlink satellite internet service and AI compute leasing, with space-related operations contributing only about 10% of total revenue. This indicates a shift in the company's primary business focus away from its rocket launches, despite the public perception.
SpaceX's shares fell 10% after its debut earnings report, despite exceeding revenue and net loss estimates, due to higher-than-expected capital expenditure on AI infrastructure. The company plans significant investment in data centers, aiming for 10GW computing capacity by 2027, which concerned investors about future spending.
SpaceX shares fell over 10% after its first public earnings report revealed a sixfold increase in capital expenditures to $18.4 billion in Q2, primarily driven by AI investments. Investors are concerned about the high spending and the company's ability to generate returns from these investments, despite narrowing losses and an accelerated revenue forecast.
SpaceX's stock dropped after its first earnings report post-IPO, despite revenue exceeding estimates, due to capital expenditures for AI buildout being significantly higher than anticipated. The company is investing heavily in AI infrastructure to compete in the AI compute market, aiming for a rapid return on investment.
During SpaceX's inaugural earnings call, Elon Musk made several expansive claims about Starlink's future internet market share and the company's compute-leasing business. These statements contrasted with more conservative projections from other SpaceX executives, highlighting a pattern observed in Musk's other ventures like Tesla. This divergence indicates potential communication challenges as SpaceX transitions to public scrutiny.
SpaceX's recent earnings report revealed that X's advertising revenue for Q2 2024 was $367 million, a substantial decrease from $1.08 billion in Q2 2022 before Elon Musk's acquisition. This decline indicates a significant shift in X's business model, with advertising now forming a smaller portion of its overall revenue compared to other divisions like AI and Starlink.
SpaceX released its first public earnings report, showing a 92% year-over-year revenue increase to $7.8 billion and reduced net losses to $541 million. The report highlights significant capital expenditure in its AI division, formerly xAI, which saw a 247% revenue increase to $2.56 billion but also a 2,013% rise in CapEx to $15.8 billion.
SpaceX's AI division reported a revenue increase to $2.6 billion, over three times the previous year, primarily from providing compute services to other AI companies like Anthropic and Google. Despite this growth, the AI division incurred a $1.5 billion loss this quarter, and the company as a whole continues to operate at a loss, though it has narrowed.
SpaceX reported a 92% revenue increase to $7.8 billion in Q2 2026, largely due to growth in its Starlink satellite internet service and new compute power rental agreements with Anthropic and Google. This financial growth indicates a significant shift in the company's revenue streams, with its AI division contributing nearly $2 billion to the increase.