Is SpaceX Stock a Buy After Its Latest Earnings Report?
Key Points
SpaceX is still growing like a weed.
Its expansion plans are aggressive, but its stock doesn’t seem too expensive.
SpaceX (NASDAQ: SPCX) posted its third-quarter earnings report on Oct. 20. The aerospace and AI company's revenue surged 161% year over year to $14.6 billion, beating analysts' estimates by $1.6 billion. Its EPS of $0.35 also cleared the consensus forecast by $0.19, marking a major improvement from its net loss of $0.36 per share a year earlier. Those headline numbers were impressive, but is SpaceX's stock worth buying in this choppy market?
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Reviewing SpaceX's key growth rates
In the first nine months of 2026, SpaceX generated 47% of its revenue from its connectivity (Starlink) segment, 40% from its SI ("super intelligence") segment, and 12% from its space segment. On a generally accepted accounting principles (GAAP) basis, Starlink is SpaceX's only profitable business -- and it supports the expansion of its unprofitable space and SI businesses. But if we only look at its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) -- which generously excludes interest payments on its debt, depreciation on its hardware, and stock-based compensation -- its margins look much better.
Segment |
9M 2026 Revenue Growth (YOY) |
9M 2026 Operating Margin |
9M 2026 Adjusted EBITDA Margin |
|---|---|---|---|
Connectivity |
57% |
40.7% |
63.9% |
SI |
380% |
(30.1%) |
50.2% |
Space |
2% |
(36.2%) |
(5.9%) |
Total |
97% |
2.6% |
49.8% |
Data source: SpaceX. YOY = Year-over-year.
Starlink is clearly SpaceX's core profit engine, but it's still growing rapidly with 13.6 million consumer subscribers and about 11,100 satellites in orbit. Its recent spectrum acquisition could accelerate its expansion and eventually turn it into a full-fledged wireless carrier.
The SI segment -- which houses xAI, Grok, X, Cursor, and its other AI assets -- continues to grow as it secures big infrastructure deals with Anthropic, Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, and other big companies. The space segment is growing more slowly, but Starship -- the largest rocket ever built -- should ignite its growth again.
Is it the right time to buy SpaceX?
For 2026, analysts expect SpaceX's revenue to surge 161% to $48.8 billion with a GAAP net profit of $3.6 billion -- or $0.21 per share. For 2027, they expect its revenue to jump 264% to $177.6 billion as its net income soars 1,356% to $51.8 billion, or $3.87 per share. Elon Musk claims SpaceX's annual revenue could surpass $1 trillion by 2030.
SpaceX's stock doesn't seem expensive if you expect it to hit those targets. At $150, it trades 11% above its IPO price of $135 and at 38 times next year's earnings. I wouldn't go all-in on SpaceX at these levels yet, but I'd be willing to buy a starter position -- since it clearly has more irons in the fire than many of its smaller competitors in the nascent space industry.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.