SpaceX stock surged into its first earnings report as a public company with high expectations. The company delivered a revenue beat and a much smaller-than-expected loss, but Wall Street focused on something else: soaring AI spending.
Despite reporting stronger-than-expected results, SpaceX stock fell about 8% in after-hours trading as investors worried that massive investments in artificial intelligence infrastructure could continue weighing on profits for years.
SpaceX Beats Wall Street Estimates
SpaceX reported second-quarter revenue of $7.81 billion, well above analyst expectations of $6.93 billion.
The company also posted a loss of 9 cents per share, substantially better than the expected 26-cent loss.
Revenue climbed an impressive 92% year over year, rising from $4.1 billion during the same quarter last year. Meanwhile, the company’s net loss narrowed dramatically to $541 million, compared with a $1 billion loss a year ago.
For most companies, those numbers would have fueled a rally.
Instead, investors sold.
Why SpaceX Stock Fell Anyway
The biggest concern wasn’t revenue. It was spending.
SpaceX continues pouring enormous sums into artificial intelligence following its merger with Elon Musk’s xAI earlier this year. The long-term vision is ambitious: building AI infrastructure and eventually operating data centers in space.
That vision comes with an enormous price tag.
Last year, SpaceX lost $4.9 billion, largely because of aggressive AI investments. Those costs remain elevated, and investors are questioning how long the company can continue spending at this pace before profits meaningfully improve.
The results reinforced that concern.
The company’s AI business generated $2.56 billion in revenue, beating expectations, but still posted an operating loss of $1.26 billion during the quarter.
Starlink Continues to Carry the Business
While AI remains deeply unprofitable, Starlink continues to be the company’s financial engine.
SpaceX’s connectivity division, which includes Starlink satellite internet, generated:
- Revenue: $4.29 billion (vs. $3.83 billion expected)
- Operating income: $1.66 billion
That made it the only major business segment producing meaningful profits.
The space launch division also exceeded revenue expectations with $962 million in sales but still reported a $542 million operating loss as launch costs remained high despite strong government demand from NASA and the Department of Defense.
A Massive New Opportunity Is Coming
Investors also received an update on one of SpaceX’s biggest future growth drivers: Starlink Mobile.
President Gwynne Shotwell said the company launched new international mobile partnerships during the quarter with major wireless providers including Japan’s SoftBank and NTT DoCoMo, along with Spark New Zealand.
The next phase involves launching upgraded mobile satellites aboard Starship before integrating newly approved EchoStar spectrum next year.
Shotwell said the company ultimately plans to compete directly with America’s largest wireless carriers, including AT&T, Verizon, and T-Mobile.
Her goal is ambitious.
SpaceX expects to begin offering standalone Starlink Mobile service by the end of 2027, eliminating traditional cellular dead zones by connecting phones directly to satellites.
“I expect us to be able to acquire quite a few of their customers,” Shotwell told investors, arguing the satellite-based service could outperform traditional wireless networks.
Musk Offers Little Update on Cursor Acquisition
Investors also asked Elon Musk about the company’s planned $60 billion acquisition of Cursor.
Musk declined to provide new details, saying only that SpaceX is working to complete the transaction as quickly as possible while waiting for regulatory approval.
His cautious response wasn’t surprising given his previous regulatory disputes over discussing pending transactions before they officially closed.
What Investors Should Watch Next
The first earnings report showed that demand across SpaceX’s businesses remains exceptionally strong.
Revenue beat expectations across all three operating segments, and losses came in well below Wall Street forecasts.
The challenge is that investors appear far more concerned about profitability than growth.
For SpaceX stock, the key question now becomes whether Starlink’s rapidly growing profits can eventually offset the enormous investments being made in artificial intelligence.
If AI spending begins to moderate while Starlink continues expanding globally, investor sentiment could improve quickly.
Until then, SpaceX stock may remain highly volatile as Wall Street weighs extraordinary revenue growth against equally extraordinary spending.
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