Wall Street Lifts SpaceX Projections Following Third-Quarter Financial Disclosure

SpaceX reported its third-quarter financial results after the market closed on October 20, detailing a significant expansion in its bottom line and outlining aggressive plans for infrastructure growth. The company posted a net profit of $4.4 billion, reversing a loss from the same period last year, alongside a revenue figure of $14.6 billion. This top-line performance exceeded analyst consensus estimates, which had projected approximately $12.7 billion. Shares of the company (NASDAQ: SPCX) moved sharply higher in after-hours and premarket trading following the announcement.

In the wake of the report, several major financial institutions adjusted their outlooks on the stock. JPMorgan more than doubled its price target to $500 from $240, while maintaining an Overweight rating. Cantor Fitzgerald raised its target to $345 from $246, and Barclays increased its figure to $300 from $254. Other firms also revised their targets upward, including Wells Fargo, which moved to $274 from $214, and Clear Street, which adjusted to $248 from $217. Citigroup, UBS, and TD Cowen also issued higher targets. These adjustments were generally attributed to the company’s strong quarterly print, progress in its Starlink and Starship programs, and the rapid expansion of its artificial intelligence compute capabilities.

During the earnings call, CEO Elon Musk and CFO Bret Johnsen provided guidance for the first quarter of 2027, projecting revenue between $33 billion and $37 billion. This range stands well above the roughly $22 billion that analysts had previously modeled for that period. Management also outlined fourth-quarter capital expenditure plans of $35 billion to $40 billion, intended to support the buildout of AI compute infrastructure at sites including Memphis and Southaven. The company is targeting 2.5 to 3 gigawatts of nameplate compute capacity by the end of the year, with plans to reach 13 gigawatts or more by the end of 2027.

The company’s internal divisions reported specific figures regarding their contributions to the quarterly total. The Super Intelligence division generated approximately $7.6 billion, becoming the largest revenue contributor and growing nearly 830 percent year-over-year. The Connectivity segment delivered $5.2 billion, supported by subscriber additions that brought the Starlink consumer base to 13.6 million. Musk described demand for compute capacity from hyperscalers as relentless, adding that current pricing supports payback periods of less than a year.

Looking ahead, the average analyst price target has moved higher, reflecting increased conviction in the company's trajectory across launch, connectivity, and its AI business. The stock closed at $147.79 on October 20 and jumped roughly 8 percent in early premarket trading on October 21 as investors digested the results. Discussions regarding potential combinations with other entities, specifically Tesla, are ongoing through the formation of special committees.