SAN FRANCISCO: SpaceX reported a sharp 92 percent jump in second-quarter revenue in its first earnings release since going public, but the strong financial performance failed to impress investors, sending the company’s shares more than eight percent lower in after-hours trading.
The aerospace and technology company exceeded analysts’ revenue expectations by roughly $1 billion, driven by rapid expansion of its Starlink satellite internet business and growing demand for artificial intelligence computing services.
Starlink expanded to 12 million subscribers during the quarter, doubling its customer base compared with a year earlier. The satellite internet division generated more than half of SpaceX’s total revenue and remained the company’s only profitable business segment.
The company also highlighted new commercial partnerships with major airlines, including American Airlines, Southwest Airlines, Virgin Atlantic, Iberia and Aer Lingus, as carriers continue adopting Starlink’s in-flight connectivity services.
SpaceX’s AI division generated $2.6 billion in revenue, nearly tripling from a year earlier. However, the business also recorded a $1.3 billion operating loss as the company continued investing heavily in artificial intelligence infrastructure.
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Overall capital expenditure exceeded $18 billion during the quarter, with more than 86 percent directed toward AI-related projects.
Meanwhile, the company’s traditional rocket launch business generated $962 million in revenue but posted an operating loss of $542 million.
Chief Executive Officer Elon Musk and Chief Operating Officer Gwynne Shotwell told investors that SpaceX was successfully transforming from a launch-focused company into a diversified technology group centred on artificial intelligence, satellite communications and government contracts.
Despite the upbeat outlook, analysts said investors remain cautious about the company’s ability to translate long-term ambitions into sustained profitability. Market sentiment has also been affected by an upcoming share lock-up expiry, which could significantly increase the number of shares available for trading.
