SpaceX revenue nearly doubles on Starlink growth and AI compute deals

SpaceX’s total sales grew from $4 billion in the second quarter of 2025 to $7.8 billion in Q2 2026, a jump of 92%, the company said in its first quarterly earnings report since going public. Nearly $2 billion of that growth came from its AI division, while Starlink satellite-internet revenue grew by $1.7 billion. The company still lost $541 million in the quarter, down from a $1 billion loss a year earlier.

Chief financial officer Bret Johnsen said Tuesday that SpaceX has an additional $6.7 billion of cloud-services revenue under contract “over a six month period that begins ramping starting in October of this year.” He added that once the company fully integrates AI startup Cursor, he believes it will reach a $100 billion annualized revenue run rate (ARR) by the end of this year — SpaceX reported $18.67 billion in total revenue for 2025. CEO Elon Musk went further, saying: “the $100 billion ARR in December is not a question mark. That’s what we would achieve if we basically did nothing. So I think it may be higher than that. It probably will be higher than that.”

After a successful post-IPO bond sale, the company now holds a $100 billion war chest and isn’t slowing spending: it reported more than $28 billion in capital expenditures through the first half of this year, up from $7 billion over the same period in 2025. The earnings report comes nearly two months after SpaceX’s IPO, in which the company raised more than $85 billion at a $1.75 trillion valuation — the largest IPO in history. The stock’s market cap briefly passed Amazon and nearly equaled Microsoft in its first days of trading, but has since fallen; shares closed at just over $125 on Tuesday, reportedly below the $135 IPO price CEO Elon Musk himself had set, and sank as much as 8% further in after-hours trading.

Both the Anthropic and Google compute deals were announced in the weeks before SpaceX’s IPO and mark a major pivot for the company. SpaceX’s AI division, formerly Musk’s own xAI before its absorption into the rocket company, had struggled to catch up to leading labs like OpenAI and Anthropic and win customers. SpaceX had already built two data centers in and near Memphis, Tennessee to train xAI’s models, and has since pivoted much of that capacity to rent out to customers including Anthropic and Google. “The incremental revenue from new hosting deals generated high incremental EBITDA margins as we monetized available compute capacity,” Johnsen said on the earnings call.

Why it matters

SpaceX’s pivot of idle AI-training infrastructure into a compute-rental business is now a bigger growth driver than its historic launch and satellite operations combined, testing whether a hardware-and-orbital company can also become a credible cloud supplier to the AI labs it once tried to compete with directly.