Musk confirms Tesla and SpaceX are exploring merger as SpaceX reports significant revenue growth driven by Starlink and AI
Strong earnings
The company achieved revenue of $14.58 billion against expectations of $12.72 billion.
Adjusted earnings per share stood at 45 cents, exceeding the forecast of 13 cents.
Operating income was recorded at $2.8 billion and net income at $4.4 billion, recovering from a loss of $1.05 billion a year earlier.
CFO Bret Johnsen forecasted first-quarter 2027 revenue between $33 billion and $37 billion, well above the $22.2 billion projection by analysts.
SpaceX generates most revenue from its Starlink satellite internet service, which grew its subscriber base to 13.6 million.
Total connectivity revenue increased by 69% to $5.25 billion, surpassing the expected $4.84 billion.
Starlink’s consumer revenue was $3.12 billion, while government and enterprise customers contributed $2.13 billion.
Starlink plans to develop a U.S. mobile network and has secured low-band spectrum for its 15,000-satellite constellation.
Future prospects
The AI division, labelled “Super Intelligence,” grew significantly, generating revenue of $7.56 billion, up from $813 million last year.
During the quarter, SpaceX also acquired AI coding startup Cursor for $60 billion.
Although the launch business saw modest growth to $1.77 billion, most profits originated from Starlink, with significant gains reported in its connectivity unit.
SpaceX’s AI division turned a profit of $431 million, contrasting with a loss of $7 million from the space launch segment.
