Revenue rose 161.4% and operating income reached $2.79B against a $273M loss a year earlier, led by SI and the Cursor acquisition 16. Net income of $4.4B also leans on investment gains and a tax benefit, while capex hit $19.6B 8-K.
Space Exploration Technologies Corp. (SpaceX) · Q3 2026 · Reported 20 Oct 2026 · US
Key figures
Million USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | 14,575 | 5,576 | +161.4 % |
Operating income (loss) | 2,791 | -273 | +3.06B USD |
Net income (loss) | 4,404 | -1,054 | +5.46B USD |
Operating margin | 19.1 % | -4.9 % | +24.0 pp |
Net margin | 30.2 % | -18.9 % | +49.1 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
SI and an acquisition supplied most of the revenue growth
Revenue was $14,575 million, up 161.4% from $5,576 million a year earlier 16. SI added $6,747 million of the $8,999 million increase, which management attributes mainly to SI infrastructure contracts and revenue from Cursor after the acquisition 18. Cursor closed on August 14, so this growth is partly acquired, not organic 1.
Connectivity added $2,151 million as consumer subscribers and enterprise and government customers grew 18. Consumer subscribers reached 13.6 million from 7.2 million, but consumer ARPU fell to $69 a month from $83 8-K. Growth is coming from volume, not price per subscriber.
Operating income turned positive as SI moved from loss to profit
Operating income was $2,791 million against a $273 million loss, a margin of 19.1% against negative 4.9% 16. SI earned $431 million, against a $1,722 million loss a year earlier and a $1,257 million loss in the prior quarter 8-K. Connectivity earned $2,367 million against $1,190 million 8-K.
The year-earlier quarter carried a $278 million restructuring charge tied to former Twitter employees 16. Excluding it, the Q3 2025 margin was 0.1%, so the margin gain is 19.0 points against 24.0 reported. That is our calculation, not a company figure. Company-defined Adjusted EBITDA was $8.8 billion, up 306% from $2.2 billion 8-K.
Net income of $4.4B owes much to items outside operations
Net income was $4,404 million against a $1,054 million loss 16. Below operating income, other income, net rose by $885 million to $1,025 million, mainly from unrealized gains on investments in unconsolidated affiliates and gains on digital assets 16. Interest income was $873 million against $155 million, after IPO and note proceeds were deployed 16.
Tax was a $390 million benefit against a $562 million provision a year earlier, mainly from a partial valuation allowance release linked to the 2026 acquisitions 16. Interest expense rose 31.3% to $675 million 16. Operating income is the cleaner read of the business.
Capex of $19.6B is the open question, and the report gives no cash flow figure
Capex was $19,593 million against $6,880 million a year earlier, of which SI was $16,444 million 8-K. Nameplate compute reached 1.7 GW from 0.6 GW 6. The filing reports nine-month operating cash flow of $13.1B, but no standalone Q3 cash-flow figure; Q3 capex was $19.6B.
Space is the weak segment. Its revenue rose 6.1% on favorable customer mix, but it posted a $7 million operating loss against a $259 million profit, as Starship R&D rose $376 million 24. Customer launches fell to 12 from 15 4.
What to watch next
Management gave no numeric guidance. The CFO commentary stresses capital efficiency and an investment-grade balance sheet, so watch whether SI capex produces returns that cover rising interest costs 8-K16.
SI R&D and SG&A are expected to increase because of share-based compensation on acquisition-related awards, including Cursor, which could weigh on SI's new operating profit 1314.
A special committee is evaluating a potential Tesla combination with no determination made, and the company sees a reasonable possibility of a significant U.S. valuation allowance release, which would bring a material tax benefit 323.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.