Wall Street analysts moved quickly to raise price targets on SpaceX (NASDAQ: SPCX) after the company reported third-quarter 2026 results following the market close on October 20. Shares rose sharply in after-hours trading and continued higher in premarket trading on October 21.
The company reported revenue of $14.6 billion, up 161 percent from a year earlier and well above the consensus estimate of about $12.7 billion. SpaceX also posted a net profit of $4.4 billion, reversing a loss in the prior-year period, while adjusted EBITDA reached $8.8 billion.
Its Super Intelligence (AI) division generated roughly $7.6 billion, making it the largest revenue contributor. The unit grew nearly 830 percent year over year. The Connectivity segment brought in $5.2 billion, helped by strong subscriber additions that lifted Starlink's consumer base to 13.6 million.
The earnings call proved especially influential with investors. CEO Elon Musk and CFO Bret Johnsen outlined first-quarter 2027 revenue guidance of $33 billion to $37 billion, far above the roughly $22 billion analysts had modeled. They also described fourth-quarter capital-expenditure plans of $35 billion to $40 billion, focused on AI compute infrastructure at sites including Memphis and Southaven.
Management is targeting 2.5 to 3 gigawatts of nameplate compute capacity by the end of the year and discussed pathways to 13 gigawatts or more by the end of 2027. Musk described relentless demand from hyperscalers and other customers, saying compute pricing supports payback periods of less than a year and potentially as short as six months.
Other highlights included Starship's recent orbital success and V3 satellite deployment, Starlink pricing and enterprise momentum, rapid adoption of the Grok Bot, and plans for spectrum expansion. The company also said it has formed special committees to explore a possible combination with Tesla.
The target increases followed. JPMorgan more than doubled its target to $500 from $240 and kept an Overweight rating. Cantor Fitzgerald lifted its target to $345 from $246 (Overweight), and Barclays raised its to $300 from $254 (Overweight). Citi moved to $240 from $200 (Buy), UBS to $230 from $210 (Buy), and TD Cowen to $224 from $200 (Buy). Morgan Stanley maintained an Overweight rating with a $300 target.
Wells Fargo raised its target to $274 from $214, and Clear Street moved to $248 from $217. Analysts broadly pointed to the strong quarterly results, accelerating AI compute expansion, Starlink progress and Starship milestones as drivers of higher long-term growth and earnings power.
SpaceX shares closed at $147.79 on October 20 and rose roughly 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 Super Intelligence, though elevated spending remains a point of focus.
