SpaceX Valuation: Analysts Revise Targets Following Record Quarter

The aerospace and technology sector saw significant movement on October 21, 2026, as investors reacted to robust financial results from SpaceX. The company reported a third quarter that exceeded market expectations, prompting a rapid re-evaluation of its long-term value by Wall Street analysts.

Revenue figures played a central role in the bullish sentiment. SpaceX recorded total revenue of $14.6 billion, a 161 percent increase over the same period in the previous year. This performance comfortably surpassed the consensus estimate of approximately $12.7 billion. The company also transitioned from a net loss in the prior year to a net profit of $4.4 billion, while adjusted EBITDA reached $8.8 billion. The Super Intelligence division emerged as the largest revenue contributor, generating roughly $7.6 billion and expanding by nearly 830 percent year-over-year.

The Connectivity segment also demonstrated substantial momentum, delivering $5.2 billion in revenue. Strong subscriber growth lifted the Starlink consumer base to 13.6 million users. During the earnings call, CEO Elon Musk and CFO Bret Johnsen provided first-quarter 2027 revenue guidance ranging from $33 billion to $37 billion. This projection significantly outpaced the approximately $22 billion that analysts had previously modeled.

Management outlined aggressive capital expenditure plans for the fourth quarter, estimating spending between $35 billion and $40 billion. These funds are primarily allocated to AI compute infrastructure at sites in Memphis and Southaven. The company targets 2.5 to 3 gigawatts of nameplate compute capacity by the end of the year, with pathways discussed to reach 13 gigawatts or more by the end of 2027. Musk noted that demand from hyperscalers remains relentless, with compute pricing supporting payback periods of less than a year.

The positive outlook triggered a wave of price target increases across major investment banks. JPMorgan more than doubled its target to $500 from $240, while Cantor Fitzgerald raised its to $345 from $246. Barclays and Morgan Stanley both set targets at $300, and Citi increased its to $240. Other firms, including UBS, TD Cowen, Wells Fargo, and Clear Street, also adjusted their valuations upward. Analysts cited the strong quarterly performance, accelerating AI expansion, Starlink progress, and Starship milestones as key drivers.

SpaceX shares, which closed at $147.79 on October 20, jumped approximately 8 percent in early premarket trading on October 21. The average analyst price target has moved higher, reflecting greater conviction in the company’s trajectory across launch, connectivity, and AI. While elevated spending remains a focal point for investors, the overall sentiment suggests a strengthened belief in the firm's ability to translate its technological milestones into sustained earnings power.