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Is SpaceX Stock a Buy Right Now?
Key Points
SpaceX's third-quarter sales rose 161% to $14.6 billion, and the company reported net income of $4.4 billion.
The company's quarterly results were impressive, but one good quarter isn't enough to make the stock a buy.
Space Exploration Technologies (NASDAQ: SPCX) recently reported its Q3 2026 financial results, posting impressive gains in sales and earnings. The company's important Starlink business continued to grow, but the standout performance in the quarter came from SpaceX's artificial intelligence revenue.
Investors were pleased with the report and pushed the stock higher, but SpaceX's results still showed heavy capital expenditures, and this will likely remain high for a while yet.
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While I understand why some investors jumped on the stock after the results were released, I still don't think SpaceX stock is a buy just yet. Here's why.
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SpaceX's rocketing third-quarter growth
There was a lot for SpaceX shareholders to be excited about in the third quarter, including a 161% year-over-year surge in sales to $14.6 billion. This impressive growth helped turn the tide for SpaceX's bottom line, with net income coming in at $4.4 billion for the quarter -- up from a loss of $1.1 billion in the year-ago quarter.
Here's how the breakdown of the company's sales panned out:
- Starlink: Sales rose 69% to $5.2 billion, and subscribers rose 13% to 13.6 million
- Space Launch: 12 customer launches totaling $1.8 billion, a 6% year-over-year increase
- Artificial intelligence: A surprising 830% revenue jump to $7.6 billion
It's worth highlighting SpaceX's AI segment (what it calls Super Intelligence) sales growth for a moment because it accelerated quickly and surpassed Starlink as SpaceX's largest revenue driver, accounting for 52% of total sales.
SpaceX is spending a lot of money on building out its AI business (which includes its Grok chatbot and renting out computing capacity to customers). The company's capital expenditures (capex) rose 185% to $19.6 billion in the quarter -- and 83% of that spending went toward AI.
That's a hefty price tag for just one segment of the business, but SpaceX's AI sales growth in the quarter indicates its investments are starting to pay off. If this trajectory continues, it could be good news for investors, as AI spending will total $35 billion to $40 billion in 2026, according to SpaceX's management.
Is it time to buy SpaceX stock?
Personally, I'm not buying SpaceX any time soon, but I understand why some investors may want to after SpaceX's third-quarter results. The company reversed its losses and posted a solid profit, and its AI business is accelerating quickly.
One of the things that makes me hesitate to buy SpaceX is that the company continues to spend heavily on AI infrastructure. One quarter of explosive AI sales is good. Still, the company needs its artificial intelligence revenue to keep increasing rapidly before the spending really looks like it's a good long-term bet.
What's more, investors are increasingly skeptical of excessive AI spending, and if future quarters don't show similar gains in AI sales, SpaceX shares could face a bumpy road ahead.
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.