SpaceX Earnings: Wall Street Raises Price Targets

SpaceX reported a dominant third quarter for 2026 that immediately reshaped Wall Street expectations. The company disclosed its financial results after the market closed on October 20. Analysts responded by rapidly lifting their price targets. This shift signals a strong vote of confidence in the company’s future growth. Investors are paying close attention to the new direction the stock is taking.

The financial numbers were impressive. Revenue reached $14.6 billion. This represents a 161 percent increase compared to the same period last year. The figure comfortably exceeded the consensus estimate of roughly $12.7 billion. The company also swung from a loss a year ago to a net profit of $4.4 billion. Adjusted EBITDA climbed to $8.8 billion.

The Super Intelligence division drove much of this growth. It generated approximately $7.6 billion in revenue. This segment became the largest contributor to total income. It grew nearly 830 percent year over year. The Connectivity segment also performed well. It delivered $5.2 billion in revenue. Starlink added strong subscriber numbers. This pushed the consumer base to 13.6 million users.

The earnings call provided further clarity on future plans. CEO Elon Musk and CFO Bret Johnsen shared revenue guidance for the first quarter of 2027. They projected revenue between $33 billion and $37 billion. This figure is far higher than the roughly $22 billion analysts had previously modeled. The company also outlined capital expenditure plans for the fourth quarter. These plans range from $35 billion to $40 billion. The spending is focused on AI compute infrastructure in locations like Memphis and Southaven.

Management has set specific targets for compute capacity. They aim for 2.5 to 3 gigawatts of nameplate capacity by the end of this year. They discussed pathways to reach 13 gigawatts or more by the end of 2027. Musk noted relentless demand from hyperscalers and other customers. He stated that compute pricing supports payback periods of less than a year. Some scenarios suggest payback could be as short as six months.

Other strategic highlights emerged during the call. Starship achieved recent orbital success. The company also deployed V3 satellites. Starlink pricing and enterprise momentum remain strong. Adoption of the Grok Bot is expanding rapidly. Spectrum expansion plans are in motion. Special committees have formed to explore a possible combination with Tesla. These elements collectively boosted investor sentiment.

The reaction from major financial firms was swift and positive. JPMorgan more than doubled its target to $500 from $240. It maintained an Overweight rating. Cantor Fitzgerald lifted its target to $345 from $246. Barclays raised its target to $300 from $254. Citi increased its target to $240 from $200. UBS moved to $230 from $210. TD Cowen raised its target to $224 from $200.

Morgan Stanley held an Overweight rating with a $300 target. Wells Fargo adjusted its target higher to $274 from $214. Clear Street also moved higher to $248 from $217. Analysts cited the strong quarterly print as a key driver. They also pointed to accelerating AI compute expansion. Starlink progress and Starship milestones were noted as factors supporting higher long-term growth and earnings power.

The stock price reflected this optimism. Shares closed at $147.79 on October 20. They jumped roughly 8 percent in early premarket trading on October 21. Investors digested the results and the newly elevated targets. The average analyst price target has moved higher. This reflects greater conviction in SpaceX’s trajectory across launch, connectivity, and the Super Intelligence business. Elevated spending remains a point of focus for the market.

The situation looks favorable for the company moving forward. The strong performance has set a high bar for the upcoming year. Investors are now watching how the company executes its ambitious infrastructure plans. The combination of strong revenue growth and clear future guidance has created a positive momentum. This update marks a significant step for the company in its broader market presence.