SpaceX reported $7.81 billion in second-quarter revenue, up 92% from a year earlier, alongside a $541 million net loss in its first earnings release since becoming a publicly traded company. The connectivity segment brought in $4.29 billion, while AI generated $2.56 billion and the space business added $962 million. Quarterly capital spending reached $18.37 billion, with $15.83 billion directed into AI infrastructure. SpaceX ended June with $93.52 billion in cash, $192.77 billion in total assets, and $1.10 billion in Bitcoin holdings. Shares fell 4% in after-hours trading.

Broader Market Context

U.S. stock futures barely moved Tuesday night after major indexes posted a second straight strong session and the S&P 500 finished at a record. Futures tied to the Dow Jones Industrial Average gained 90 points, or 0.2%, while S&P 500 futures rose 0.1%. Contracts linked to the Nasdaq 100 slipped 0.2%.

Asian markets were mostly higher. South Korea's Kospi jumped more than 4%, leading the region, while the Kosdaq gained 2%. Japan's Nikkei 225 climbed 3.1%, and the Topix rose 1.57%. Australia's S&P/ASX 200 added 0.13%. Hong Kong's Hang Seng fell 0.4%, while China's CSI 300 traded nearly flat.

In U.S. after-hours trading, SpaceX shares initially dropped almost 7% after the company disclosed that second-quarter capital spending had risen to $18.4 billion, before recovering somewhat to close down 4%. AMD fell 8% after its adjusted earnings came in only slightly above Wall Street's forecast. Nvidia shares gained about 2% after Elon Musk said the chipmaker makes the "best AI computer" and that SpaceX plans to rely only on Nvidia's Vera Rubin processors.

Cursor Acquisition and Regulatory Caution

Near the end of the earnings call, Musk was asked about SpaceX's planned $60 billion purchase of Cursor, an AI coding company. He avoided discussing the deal in detail but indicated the company was working to finish it quickly.

"We're trying to get the acquisition closed as quickly as possible," Musk said. "I think we're pretty close to that. But we're wary of sort of jumping the gun on regulatory closures."

The transaction is expected to be completed during the third quarter. Musk has previously faced disputes with regulators over public comments involving major corporate transactions, including his leveraged takeover of Twitter and an announced plan to take Tesla private that never materialized.

Starship and Starlink V3 Roadmap

Musk said Starship's 13th test could happen near the end of this month, though the date still depends on regulatory clearance. He began the call by describing the quarter as "another milestone" for SpaceX, noting that the next Starship mission will carry the first V3 Starlink satellites into orbit. Starship is SpaceX's newer reusable launch system, being developed for larger missions than Falcon 9 can handle.

Musk also addressed the newly launched Starlink V3 satellites, saying customers will not see the full upgrade until SpaceX has enough of them in orbit because each V3 unit offers more capacity and faster internet service than earlier versions. SpaceX may need roughly 1,000 V3 satellites before the network reaches that point. Musk expects the company to get there around the second quarter of next year.

He also said Starlink could eventually carry most of the world's internet traffic. The V3 upgrade is intended to widen SpaceX's lead over rival satellite broadband projects, including Amazon's Project Kuiper, which has launched prototype satellites but remains in earlier stages of deployment.

Financial Guidance and AI Spending Outlook

SpaceX Chief Financial Officer Bret Johnsen said spending during the next two quarters should stay close to the level recorded in the second quarter. Johnsen added that money invested in AI computing equipment can now be recovered in under 12 months, meaning the revenue produced by newly installed computing capacity is expected to cover its cost within a year.

SpaceX is aiming to finish 2026 at an annualized revenue pace of $100 billion, Johnsen said, with Musk indicating the figure could ultimately come in even higher. The projection includes expected sales from SpaceX's planned purchase of Cursor. The $100 billion figure does not represent full calendar-year revenue; it describes the yearly revenue the company would produce if its business at the end of 2026 continued at the same level for the subsequent 12 months.

Government Contracts

SpaceX President Gwynne Shotwell said the company secured more than $6 billion in U.S. government business during the second quarter. "We see even more room for growth in this sector in this coming year," Shotwell added.

Part of that work came from the U.S. Space Force. In July, the agency placed $1.6 billion in orders for 18 Falcon 9 launches scheduled through 2027. Those missions will carry Pentagon satellites built to track and target objects in the air. Another award came in May, when SpaceX received a $2.29 billion contract to create a protected, high-speed satellite network linking military sensors with weapons systems around the world. SpaceX competes with United Launch Alliance for national security space launch missions under the Pentagon's National Security Space Launch program.

Grok AI Development

On the company's artificial intelligence work, Musk said development of Grok is advancing quickly. He expects version 4.6 to arrive "probably next week."

The company's first earnings call since entering the public market will not be judged by quarterly figures alone. Investors are paying close attention to the broader narrative management presents about what comes next, especially after years of pouring money into AI infrastructure. The central question is whether SpaceX can demonstrate how that spending eventually translates into a durable business with dependable revenue, rather than remaining a costly expansion that continues to consume cash.

Shareholder Engagement and Retail Participation

SpaceX borrowed a feature from Musk's Tesla playbook before its earnings call, setting up an online page where shareholders could submit questions and vote for the ones they most wanted management to answer. The ranking changed as more votes came in.

Retail traders had an unusually large presence in the IPO. SpaceX reserved about 20% of its shares for individual investors, making it one of the biggest retail allocations attached to a major U.S. stock-market debut.

Many of the highest-ranked questions focused on Starship. Shareholders asked for additional video of the Human Landing System, which NASA plans to use to carry astronauts to the lunar surface during the Artemis program next year. Others wanted timelines for several technical milestones, including Starship's first in-orbit refueling operation, the point at which SpaceX expects to catch both the booster and upper stage, and whether the company could improve the rocket's appearance.

SpaceX's newly introduced Shiba Inu mascot, Asteroid, also drew shareholder interest. Investors asked whether the character, which already has a $35 plush toy, could become more involved in children's education, charity work, and public outreach.

Nvidia Partnership for Orbital AI Computing

SpaceX unveiled a deal with Nvidia to build computing equipment designed to run artificial intelligence systems from orbit. The hardware would operate aboard satellites and draw energy from solar panels.

The two companies will jointly develop the Starmind AI1 satellite payload. SpaceX said each unit is expected to carry Nvidia Rubin graphics processors and Vera central processors, giving the satellites computing capacity closer to what is found inside large data centers.

Orbital data centers remain unproven at commercial scale. SpaceX has floated plans to place as many as 1 million computing satellites in orbit, while scientists have raised concerns about space junk and wider environmental damage tied to a network of that size.

Balance Sheet Highlights

SpaceX closed the second quarter with $192.77 billion in total assets, up from $92.08 billion at the end of December. The most significant change came in cash following the company's June IPO. Cash and equivalents jumped to $93.52 billion from $24.75 billion. SpaceX also held $6.49 billion in marketable securities, bringing total current assets to $108.05 billion, compared with $30.95 billion six months earlier.

Other short-term assets included $3.60 billion in customer receivables, $2.72 billion in inventory, and $1.72 billion in prepaid costs and other current assets. Property, equipment, and other physical infrastructure rose to $65.74 billion, up from $42.60 billion in December. The company also reported $1.12 billion in finance-lease assets, $1.32 billion in intangible assets, and $11.65 billion in goodwill.

SpaceX carried its Bitcoin holdings at $1.10 billion at the end of June, down from $1.64 billion at the close of 2025. Bitcoin is the company's only digital asset.

Total liabilities increased to $65.55 billion from $50.75 billion. Current liabilities were nearly flat at $21.12 billion, comprising $8.24 billion in unpaid supplier bills, $7.98 billion in short-term deferred revenue, $2.53 billion in current debt and leases, and $2.38 billion in accrued expenses and other obligations. Long-term debt and finance leases climbed to $36.84 billion from $21.97 billion. SpaceX also held $6.31 billion in long-term deferred revenue and $1.28 billion in other liabilities.

The company's redeemable convertible preferred stock, previously valued at $38.75 billion, disappeared from the balance sheet after the public listing. Additional paid-in capital surged to $167.34 billion from $37.71 billion. Total shareholder equity reached $127.22 billion, compared with just $2.57 billion in December. SpaceX's accumulated deficit widened to $41.85 billion from $37.04 billion, while accumulated other comprehensive income stood at $1.72 billion.

Revenue Breakdown by Segment

SpaceX's second-quarter revenue reached $7.81 billion, up from $4.07 billion a year earlier and $4.69 billion in the first quarter. Revenue for the first six months of 2026 came to $12.51 billion, compared with $8.14 billion during the same period last year.

The connectivity business remained the company's largest revenue source, generating $4.29 billion during the quarter, up from $3.26 billion in the prior three months and $2.59 billion a year ago. Six-month connectivity revenue climbed to $7.55 billion from $5.06 billion.

Revenue from the space division stood at $962 million, versus $619 million in the first quarter and $746 million last year. Its six-month total slipped slightly to $1.58 billion, down from $1.61 billion in 2025.

The AI unit brought in $2.56 billion, more than triple the $818 million reported one quarter earlier and well above the $737 million recorded a year ago. Revenue from that business reached $3.38 billion across the first half, compared with $1.47 billion in the year-earlier period.

Operating Results and Adjusted EBITDA

SpaceX posted an overall operating loss of $143 million for the quarter, far smaller than the $1.94 billion loss in the first quarter and the $970 million loss reported a year earlier. Its operating loss for the first six months widened to $2.09 billion from $943 million.

By segment, connectivity produced $1.66 billion in operating income for the quarter, while space lost $542 million and AI lost $1.26 billion. Over six months, connectivity earned $2.84 billion, against losses of $1.20 billion for space and $3.73 billion for AI.

Total adjusted EBITDA rose to $3.54 billion, compared with $1.13 billion in the prior quarter and $1.21 billion last year. Connectivity contributed $2.60 billion, AI delivered $1.15 billion, and space recorded a $205 million loss. First-half adjusted EBITDA increased to $4.67 billion from $2.94 billion.

Capital Spending

Capital spending reached $18.37 billion during the quarter, up sharply from $10.11 billion in the first quarter and $2.83 billion a year ago. AI accounted for $15.83 billion of that amount, while connectivity used $1.37 billion and space spent $1.17 billion. The quarterly AI infrastructure outlay puts SpaceX in the same spending tier as the largest hyperscaler companies, including Microsoft, Alphabet, Amazon, and Meta, all of which have announced multi-tens-of-billions AI capex commitments.

For the full six-month period, SpaceX invested $28.48 billion, more than four times the $6.97 billion spent a year earlier. AI spending alone reached $23.55 billion, alongside $2.70 billion for connectivity and $2.23 billion for space.

Stock Performance and Ownership Structure

SpaceX stock initially rose after the results were released Tuesday, but the early gain did not hold. The shares later fell 4% in after-hours trading.

Musk's ownership position changed after SpaceX went public in June. The offering reduced his economic stake to approximately 42% of all outstanding shares, but it did not diminish his control of the company. Musk still controls more than 80% of the shareholder vote because he retained all of SpaceX's Class B stock. Each Class B share carries 10 votes, while every publicly traded Class A share carries only one.

This arrangement is known as a dual-class structure, which separates financial ownership from voting influence by giving one category of stock significantly more power than the other. Founders and senior insiders typically hold the stronger class.

Opponents argue that equal ownership should come with equal voting rights, contending that giving two investors different levels of influence for holding the same number of shares leaves major corporate decisions in the hands of a small group. The Council of Institutional Investors, which has opposed these structures for years, says founder-led control can become harder to challenge as time passes, leaving executives protected even when the business may need new leadership or a different strategy.

Research on how dual-class systems affect investors has produced mixed findings. A 2024 study published through the Harvard Law School Forum on Corporate Governance examined companies in the Russell 3000 and found that businesses with two or more share classes delivered stronger average performance than single-class companies over both five-year and 10-year periods. A separate study from the European Corporate Governance Institute reached a less favorable long-term conclusion, finding that the early valuation advantage often attached to dual-class companies tends to fade, with those firms trading below comparable single-class businesses around seven to nine years after going public.

Options Market Activity

SpaceX shares finished Tuesday at $125.33, up 9.4% for the session — the stock's strongest daily gain since June 15, when it jumped 20%, though it still closed below its $135 IPO price.

The options market is bracing for a significant move around the earnings release. Current pricing suggests SpaceX could rise or fall by approximately 15%, translating into roughly $225 billion being added to or wiped from its market value. The setup leans slightly toward a decline, based on figures from ORATS, an options-analysis platform.

The expected move also carries significance for Musk's personal fortune, as most of his wealth is tied to SpaceX. Musk became the first person to reach trillionaire status when SpaceX entered the public market. After the share offering, Forbes estimated his net worth at approximately $1.1 trillion, including stock awards scheduled to vest over time, placing him well ahead of Alphabet co-founder Larry Page, who ranked second at the time. That milestone proved brief, however. SpaceX's decline since the IPO has reduced Musk's estimated fortune to around $725.9 billion, based on Forbes' latest calculation.

Trading in SpaceX options surged almost immediately after the company went public in June, with investors repeatedly pursuing call contracts tied to prices well above the stock's trading level. That activity intensified on Monday. A call option expiring Friday with a $330 strike price changed hands approximately 90,000 times across hundreds of separate trades, based on SpotGamma figures. The total amount spent was roughly $2.2 million, with most contracts costing close to 30 cents each, or about $30 per contract. The open interest attached to that single option is now approaching $20 million.

The $330 strike price sits at nearly three times SpaceX's current share price. While such a trade would appear highly unusual for most public companies, SpaceX has been moving far more violently than the typical large stock. Its implied volatility stands at 133, making it more volatile than every company in the S&P 500 except Sandisk, based on ThinkOrSwim data. The swings have become even more extreme as traders position around the company's first earnings release. Some investors are using low-probability contracts as protection against the possibility of a sudden rebound; after the sharp post-IPO decline, those options would rise quickly in value if SpaceX unexpectedly returned toward previous highs.

Potential Tesla-SpaceX Combination

Another question looming over the company is whether Musk could eventually combine SpaceX with Tesla. Musk has discussed the possibility before and has repeatedly folded separate businesses into one another.

Tesla acquired SolarCity in 2016 for $2.6 billion. Musk was SolarCity's chairman and one of its major investors at the time, making the transaction highly controversial. He followed a similar playbook in 2026. In February, Musk merged SpaceX and xAI through a deal valuing the combined business at $1.25 trillion. Prior to that, he had combined xAI with X, the social media platform previously known as Twitter.

Tesla also disclosed earlier this year that it had invested around $2 billion in xAI. That stake was expected to convert into SpaceX shares after the businesses were combined. The companies already work closely together, sharing engineers, technology, and other resources, leaving investors watching for any sign that Musk may eventually tighten the connection between Tesla and SpaceX even further.

IPO Aftermath and Historical Comparisons

SpaceX entered its first earnings report as a public company with its stock already under significant pressure. Since trading began on June 12, the company has lost more than $500 billion in market value, leaving many retail investors nursing heavy losses after buying into Musk's rocket company at the first opportunity. The shares have now fallen for four straight weeks and sit more than 50% below their intraday high.

The early disappointment has drawn comparisons with Facebook's 2012 IPO. Facebook also struggled after listing and continued falling for months before bottoming at less than half its offering price. The difference lies in the magnitude: Facebook's first-day valuation was approximately $100 billion, roughly one-fifth of what SpaceX has wiped out so far.

The report comes two weeks after Tesla's quarterly results received a poor response from Wall Street. Investors had expressed concern about rising costs, negative free cash flow, and Musk's cautious comments about how quickly Tesla could expand its Robotaxi service. The SpaceX report also follows quarterly updates from major technology companies where spending on artificial intelligence emerged as one of the biggest issues for investors.

SpaceX went public through the largest IPO on record and immediately began rising, only to quickly lose momentum. Its share price ended Monday around $115, approximately half its all-time high. Wall Street remains broadly optimistic despite the selloff. The average analyst price target suggests the shares could more than double and eventually move beyond their previous peak. Targets tracked by Visible Alpha range from $170 to $800, though some forecasts outside the service are more bearish.

AI as the Core Valuation Driver

SpaceX's valuation is based primarily on its AI business rather than its rockets and well-known launches. In its pre-IPO presentation, the company stated that AI constituted 93% of its total market potential, which it valued at $28.5 trillion.

Ahead of the earnings release, analysts expected second-quarter revenue to rise 68% to $6.85 billion, with the company's loss projected to widen to 19 cents per share, compared with 10 cents per share a year earlier. That growth was estimated to come mainly from the AI business unit, which was expected to grow by 175% to above $2 billion.

SpaceX has begun renting out data center capacity to Alphabet, Anthropic, and Reflection AI. These contracts are expected to generate a combined $28 billion annually, representing more than 60% of the AI business's projected 2027 revenues. The arrangements position SpaceX as an AI infrastructure provider alongside established cloud platforms, with the company's orbital computing plans representing an additional differentiator that no major cloud competitor currently offers.