SpaceX reported stronger-than-expected financial results for the third quarter, with its data center operations and Grok-based AI agents outperforming investor projections. The company, long defined by its work in aerospace, has undergone a significant strategic shift, with artificial intelligence now accounting for 52% of its total revenue.

The company disclosed $14.6 billion in third-quarter revenue in a regulatory filing released Tuesday. Growth was recorded across all business segments, though the standout performer was its rebranded "Super Intelligence" division, which brought in $7.5 billion on its own. That figure was driven by the recently acquired Cursor coding tool, the Grok AI assistant, and the company's rapidly expanding neocloud infrastructure business, which now operates 1.7 gigawatts of compute capacity. The Super Intelligence segment posted $431 million in profit - a figure that would have been considerably higher had it not been offset by $1.2 billion in one-time stock-based compensation costs tied to the Cursor acquisition.

Total revenue also received a boost of roughly $1 billion from the recovery of Bitcoin prices, along with unspecified income from a related-party arrangement that analysts believe may be connected to an investment SpaceX holds in another company.

Capital Expenditures Reflect Aggressive Expansion

The strong revenue numbers come alongside substantial spending commitments. Total capital expenditures reached $19.6 billion as SpaceX continues construction of its second major data center project, known as Colossus II, while also ramping up investment in Starship, the company's heavy-lift rocket. Starship is considered central to deploying a new generation of Starlink satellites and to the company's longer-term ambitions around orbital data centers. Chief Financial Officer Bret Johnsen stated that the company expects to commit between $35 billion and $40 billion in new capital investments during the fourth quarter alone.

During a live-streamed investor discussion following the earnings release, CEO Elon Musk disclosed that he is spending four days per week in Memphis, Tennessee - the location of the Colossus II data center - as the company works to bring the facility online.

"People are starting to realize that the constraint on deployment of super intelligence is more in power and cooling and infrastructure than it is in chips," Musk said during the call.

Musk added that he has assigned a team of SpaceX engineers to tackle infrastructure bottlenecks, describing the move as analogous to a professional baseball team competing in a youth league. The implication, he said, is that SpaceX can deploy power and cooling infrastructure at a pace that no competitor can match.

Aerospace Know-How Applied to Data Center Challenges

Musk offered a specific example of how SpaceX's aerospace heritage is being leveraged to solve data center supply chain problems. Turbine manufacturers used to generate power for large-scale data centers are currently facing delays of 12 to 18 months in sourcing the metal blades and vanes required for their machines. SpaceX, Musk explained, is now applying the metal casting capabilities it developed for rocket manufacturing to produce those components directly, allowing the company to acquire turbines more quickly than competitors relying on traditional supply chains.

Starship Test Flight and Satellite Network Growth

On the aerospace side of the business, Musk confirmed that the next Starship test flight, anticipated in November, will include an attempt to recover both the first-stage booster and the second stage of the vehicle simultaneously. He described the recovery of both segments as a significant technological achievement, while noting that the truly transformative milestone will come when both stages can be refurbished and reflown.

SpaceX also reported continued growth in its Starlink satellite internet service, which now serves 13.6 million subscribers. Musk suggested that the proliferation of AI agents will generate increased demand for connectivity services, positioning Starlink as a key beneficiary of broader AI adoption trends.

Return to Profitability, Though Full-Year Picture Remains Mixed

Despite the scale of its capital spending, the revenue surge was sufficient to push SpaceX back into positive territory. The company posted net income of $4.4 billion for the quarter, a dramatic reversal from the $1 billion net loss recorded in the same period a year earlier. However, the company still has ground to recover on an annual basis. Through the first nine months of the current fiscal year, SpaceX carries a cumulative net income loss of $413 million, meaning sustained profitability for the full year will require continued strong performance in the fourth quarter.

Long-Term Revenue Projections Draw Attention

Musk was notably optimistic about the trajectory of the Super Intelligence business segment, projecting that SpaceX's annual recurring revenue could reach somewhere between $500 billion and $1 trillion by the end of 2027. While that figure represents a forward-looking estimate rather than a concrete commitment, CFO Johnsen offered a more grounded near-term forecast, projecting total revenue for the first quarter of 2027 in the range of $33 billion to $37 billion.

The results and projections collectively underscore how fundamentally SpaceX has repositioned itself. What began as a rocket company focused on reducing the cost of access to space has evolved into a diversified technology enterprise in which artificial intelligence infrastructure now represents the majority of its commercial activity.