SPACEX Q3: SI DIVISION OUTPACES STARLINK AS STARSHIP TURNS PROFITABLE

# DATA LOG: Q3 EARNINGS REPORT

SpaceX has reported a decisive Q3 victory, posting $14.6B in revenue and a net income of $4.4B. According to Payload, this represents an 87% increase over the previous quarter and comfortably exceeds analyst expectations. The narrative is no longer purely orbital; the company’s AI division, rebranded as SpaceXSI (Super Intelligence), has officially overtaken Starlink as the primary revenue driver.

THE SI SURGE

SpaceXSI generated $7.6B in Q3, nearly triple its Q2 performance. The division flipped to a $431M profit, fueled by massive cloud deals and the $608M contribution from the newly acquired Cursor. Compute infrastructure remains the priority, with current capacity at 1.7 GW and a target of up to 3 GW by year-end. Musk suggests a potential 10 GW expansion in 2027.

ORBITAL OPERATIONS

Space revenue hit $1.8B, an 84% quarterly increase despite a lower launch volume (35 missions vs 38 in Q2). This efficiency boost stems from a higher ratio of paying customer missions. Notably, Flight 14 marked Starship’s first revenue-generating mission, successfully deploying Starlink V3 satellites. Flight 15, scheduled for next month, aims to catch both the booster and the ship, paving the way for weekly launches in 2027.

CONNECTIVITY METRICS

Starlink earned $2.4B in operating income on $5.2B in revenue. While its share of total revenue dropped from 55% to 36% due to the SI surge, the user base continues to scale. Subscriber counts reached 13.6M, with average revenue per user (ARPU) rising to $69. Starlink Mobile now services 22M monthly users.

FISCAL OUTLOOK

Capex is projected to balloon to $35B–$40B in Q4. Despite heavy spending, management forecasts Q1 2027 revenue between $33B and $37B. Regarding the rumored Tesla merger, Musk indicated that terms have not been finalized, pending shareholder approval.