SpaceX shares surge as analysts lift price targets after strong quarter

SpaceX shares climbed nearly 8 percent in premarket trading on Tuesday morning. This move followed a wave of price target increases from major Wall Street firms. The stock had closed at $147.79 on Monday before the company released its third quarter results after the market closed on October 20.

The financial numbers for the quarter were significantly higher than expected. Revenue reached $14.6 billion, marking a 161 percent year-over-year increase. This figure comfortably beat the consensus estimate of $12.7 billion. The company also swung to a net profit of $4.4 billion, reversing a loss from the same period last year. Adjusted EBITDA hit $8.8 billion.

The Super Intelligence division emerged as the largest revenue driver, generating approximately $7.6 billion. This segment grew nearly 830 percent compared to the previous year. The Connectivity segment contributed $5.2 billion, with the Starlink consumer base expanding to 13.6 million subscribers. Management also highlighted recent orbital successes for Starship and the deployment of V3 satellites.

The earnings call provided further details that impressed investors. CEO Elon Musk and CFO Bret Johnsen outlined revenue guidance for the first quarter of 2027 between $33 billion and $37 billion. This range is far above the $22 billion analysts had previously modeled. The company also plans to spend $35 billion to $40 billion on capital expenditures in the fourth quarter. These funds are earmarked for AI compute infrastructure at sites in Memphis and Southaven.

Management targets 2.5 to 3 gigawatts of nameplate compute capacity by the end of this year. They discussed pathways to reach 13 gigawatts or more by the end of 2027. Musk noted relentless demand from hyperscalers and other customers. He stated that current compute pricing supports payback periods of less than a year, potentially as short as six months.

Analysts responded by raising their outlooks across the board. JPMorgan more than doubled its target to $500 from $240. Cantor Fitzgerald lifted its target to $345, while Barclays and Morgan Stanley both set targets at $300. Other firms including Citi, UBS, TD Cowen, Wells Fargo, and Clear Street also adjusted their estimates higher.

The broader market reaction reflects growing confidence in SpaceX’s trajectory across launch, connectivity, and AI. While elevated spending remains a point of focus, the strong quarterly performance has shifted the narrative. The average analyst price target has moved significantly higher, signaling a long-term growth outlook for the company.