SpaceX revenue jumps 92% in first earnings report, but shares slide
SpaceX reported a 92% revenue increase in its first post-IPO earnings report, driven by Starlink and AI investments. Despite beating analyst expectations, shares fell 8% as investors expressed skepticism over high capital expenditures and operating losses in the AI and rocket divisions.
Why it matters
This report highlights the market's cautious reaction to capital-intensive AI pivots by major tech conglomerates.
SpaceX's revenue jumped 92 percent in the second quarter, beating analyst expectations by around $1 billion in its first post-IPO earnings report, but shares tumbled as investors remained skeptical about the company's ability to deliver on lofty promises.
AI computing deals and Starlink satellite growth fueled the results, the company said in a statement. But it also continued to spend heavily, with capital expenditures exceeding $18 billion in the three months ending in June.
More than 86 percent of that spending went to its artificial intelligence division.
Starlink's satellite connectivity service grew to 12 million subscribers, doubling from a year earlier.
Rocket launches, historically the core of SpaceX's business, brought in $962 million in revenue but also posted an operating loss of $542 million.
Starlink, its satellite internet business, accounted for just over half of the company's revenue and was the only segment not losing money.
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