2026.10.20 (EST) After-Market

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Dolphin Research

Dolphin Research
Dolphin Research

SpaceX 3Q26 First Take: Overall, SpaceX delivered another across-the-board beat, while guidance was outright blowout. Details below.

1) 3Q26 Results: All three segments beat on revenue

Total revenue was $14.58 bn (+161% YoY), above the $12.89 bn consensus.GAAP OP was $2.79 bn, turning positive for the first time post-listing and 2.2x Street.

AI biz: revenue of $7.56 bn (vs. $6.31 bn est.), +195% QoQ, accounting for more than half for the first time.Drivers: full-quarter recognition of compute-hosting deals — Anthropic contributed its first full quarter, Google ramped from Sep, and Cursor consolidation added $608 mn.Mix shifted toward high-margin compute leasing, lifting segment GPM to ~65%. OP turned positive.

Starlink: revenue of $5.25 bn (vs. $4.86 bn est.), +69% YoY.B2B/Gov. was the main driver: Starshield contracts moved into execution and aviation installs scaled, with enterprise and Gov. revenue +91% YoY.On the consumer side, net adds were concentrated in developed markets, and ARPU recovered to $69. Segment GPM rose to 55%, but ~300 bps came from a one-off tariff refund; ex this, GPM was ~52%, flat QoQ.

Space: revenue of $1.77 bn (vs. $1.44 bn est.), +84% QoQ.Customer launches were 12, slightly below expectations, but the beat came from pricing: Falcon Heavy and national security missions clustered, lifting ASP per launch from $65 mn to $94 mn.Additionally, Starship cleared a lunar-contract milestone, doubling R&D services revenue.

2) Guidance: Broad-based raise

1Q27 revenue guidance of $33–37 bn, vs. market at ~ $23.4 bn.2027 adds 10 GW of compute, with year-end not less than 13 GW, and Q4 Capex of $35–40 bn, nearly doubled. Musk also said end-2027 ARR could reach $500–1,000 bn.

What does $500–1,000 bn ARR by end-2027 imply? Consider the following.

In size, that is 5–10x the $100 bn ARR target for end-2026.It is a step-change in scale.

The floor is calculable: 13 GW × 60% external leasing × $50 per watt (current pricing) ≈ $390 bn.Add ~ $80 bn from applications and ~ $45 bn from Starlink and space, totaling ~ $515 bn.In other words, if 13 GW is energized on time, 9–10 GW is leasable, and pricing holds, the floor can be delivered. That sets a clear baseline.

The upside is optionality: $1 tn would require >20 GW of compute, or a large-scale ramp of Grok Bot and Cursor.Either path could get there.

At a current market cap of ~ $1.95 tn, that is less than 4x the end-2027 ARR floor and less than 2x the ceiling.Valuation still looks 'cheap' on that framing.

In the near term, the unlock of ~1.3 bn shares could create noise.Mid-term, the stock’s main narrative has shifted from 'can it make money' to 'how fast can 13 GW come online and will new orders keep pace'.

Regardless of how much of this plan materializes, the backdrop remains a supply-short compute leasing market.Management said demand is multiples of supply, and rents for H100 and other older cards have even risen above their launch pricing for newer cards. $SpaceX(SPCX.US)

Dolphin Research
Dolphin Research

Below is Dolphin Research's summarized Trans of $SpaceX(SPCX.US) Q3 2026 earnings call.

I. Core takeaways

1. Outlook

a. Q1 2027 total revenue guided to $33–37bn. The range reflects higher visibility on compute contract pipeline over the next six months.

b. Total GPM in Q4 is expected to revert to roughly Q2 levels. Q3 benefited from one-offs and a favorable customer mix.

c. Cloud services ARR target of $100bn by year-end remains unchanged (annualized off Dec. revenue). The CEO said total company ARR could reach $500bn–$1tn by end-2027.

2. Capex, backlog and financing

a. Q3 capex was $19.6bn, mostly into SI compute, Starship infrastructure and satellite manufacturing. Given new capacity added this quarter, Q4 capex is expected to rise to $35–40bn.

b. Backlog was $63bn as of Sep 30. Of this, $17.5bn is in deferred revenue, and about $42bn is expected to be recognized within 12 months.

c. Maintain an investment-grade balance sheet. Investment remains demand-driven.

3. Key financials this quarter

a. Consolidated: revenue of $14.6bn (+161% YoY). Net profit was $4.4bn vs. a net loss of $1.1bn a year ago; Adj. EBITDA was $8.8bn (+306% YoY), outpacing revenue growth.

b. Space: revenue of $1.8bn (+84% QoQ, +6% YoY). The increase was driven by a favorable customer mix.

c. Connectivity: revenue of $5.2bn (+69% YoY, +22% QoQ). GP doubled, with GPM at 55%; about 300bps was one-off (mainly tariff refunds). Ex one-offs, Adj. EBITDA margin expanded by roughly 200bps YoY.

d. SI: revenue of $7.6bn, up $5.0bn QoQ and $6.7bn YoY. Adj. EBITDA was $5.0bn, up $3.8bn QoQ and $5.4bn YoY, mainly from high-margin cloud services agreements.

4. Accounting impacts from the Cursor acquisition

a. Cursor equity value was $60bn. Of this, $23bn is for retention of key employees and replacement of unvested equity (including executive re-vesting), to be recognized as SBC over roughly three years.

b. Q3 SI OP was $431mn. Excluding $1.2bn Cursor-related SBC, OP would have been $1.6bn.

II. Call details

2.1 Management highlights

1. Launch and Starship

a. 35 launches in Q3: 21 Falcon 9 Starlink missions, 2 Starship, and 12 major customer missions (including a Falcon Heavy launch of NASA's Roman Space Telescope). Six were national security missions.

b. Newly signed: three Dragon crewed missions (scheduled through 2028), an Artemis 3 Starlink communications contract, 18 national security missions, a Starship lunar payload contract, and three Starfall missions.

c. Flight 14 reached orbit for the first time and deployed V3 satellites. Roughly half-loaded, it delivered 26 Tbps of capacity, equivalent to 10 Falcon 9 launches.

d. Flight 15 is planned for next month, aiming to recover both booster and ship to the tower. FAA approval is expected to cover return and tower recovery; the CEO sees success as more likely than failure, which would mark the first fully reusable orbital launch system recovery.

e. Early 2027 will re-fly the second stage and attempt on-orbit propellant transfer. From 2027, launches of mobile V2 and Starmine satellites begin; the goal is weekly cadence in 1H 2027 and twice-weekly or more in 2H.

f. A Louisiana launch site has been announced, with a long-term plan for 20+ towers. The CEO said the company accounts for ~90% of global mass to orbit, China ~6%, and others ~4%.

2. Starlink broadband

a. Coverage now spans 174 markets, adding Vietnam and Uganda. Consumer users rose by 1.6mn in Q3 to 13.6mn, excluding hundreds of thousands of enterprise and aviation users.

b. Consumer ARPU rose 5% QoQ to $69/month, helped by mix. V5 terminals are ramping, inventory constraints have eased; retail channels are prioritized ahead of the holidays, and activations are expected to increase in Q4.

c. Enterprise and Gov. revenue rose 91% YoY and 18% QoQ, driven by Starshield and aviation. Management expects both Enterprise and Gov. to each surpass consumer connectivity revenue over time.

d. Aviation contracts cover ~12k aircraft, about one-quarter of the addressable fleet, including three of the four largest U.S. airlines. Aviation terminal capacity increased 4x this year and is set to double again by year-end.

e. V3 payload per Starship will ramp to more than 20x Falcon 9's current downlink capacity. The CEO expects constellation capacity to reach 100x today within ~3 years (about 100k satellites, per-satellite bandwidth >10x), and demand could reach 1,000x current levels in 3–5 years.

3. Starlink Mobile

a. MAUs exceeded 22mn, up 37% QoQ. In Q3, new carrier partnerships were added in Uganda, DRC, Kazakhstan and Costa Rica.

b. The FCC approved launching 15k mobile V2 satellites, and the company announced acquisition of low-band spectrum. Service is planned to start in early 2028, with the goal of becoming a major U.S. mobile operator.

4. SI (Super Intelligence)

a. Nominal compute was 1.7 GW at Q3-end, near 2.2 GW by end-Oct, and tracking 2.5–3 GW by year-end. About 200k GB300 units are coming online each month, with Vera Rubin the main platform in 2027.

b. The 2027 goal is to add 10 GW, reaching ≥13 GW by year-end. This will be paired with an additional 20 GW of power and cooling capacity (see Q&A).

c. By end-Q2 2027, a training cluster of 440k Vera Rubin units will go live. It is intended to enhance Grok's competitiveness.

d. SI solutions and infrastructure revenue was $7.0bn, with Cursor (consolidated mid-quarter) contributing $608mn. Ex-Cursor, QoQ growth was +192%, mainly from activation of new cloud services agreements; ad revenue rose 19% YoY.

e. Compute unit pricing is slightly above the prior $30–50/W range's upper bound. New deployments have sub-1 year payback; deployment remains demand-led, with contracts allowing flexible allocation between internal training and external rentals.

f. Grok Bot launched in Aug; paying WAUs were 800k in early Oct, more than doubling over the past month. Per-user usage is rising; B2B is the fastest-growing, with full enterprise deployment opening in weeks.

g. Enterprise customers with ARR >$1mn grew 50% QoQ (incl. Cursor, pro forma). A bundled plan combining Grok, Grok Bot, Cursor and X Premium has been launched.

2.2 Q&A

Q: Has TerraFab placed EUV orders and when are deliveries? Where is the biggest room to improve the semi mfg. supply chain?

A: No EUV order confirmations and no specific improvement areas were disclosed; management only noted test chips by mid-2027 and volume production in Q3 2028. The first test chip (SRAM-type, for line validation) is planned to run in the Austin research lab around May–Jun 2027.

The Gibbons Creek main fab targets volume around Q3 2028, with wide uncertainty. Management said mass production in Q3 or Q4 is 'at least within the realm of possible outcomes' and thanked suppliers such as ASML for accelerating tool deliveries.

They cited major process breakthroughs but declined to share details on the call. The long-term goal is annual chip output corresponding to 1 TW of compute.

Q: How will you resolve power, cooling and infrastructure bottlenecks, and what underpins confidence in reaching 13 GW by end-2027?

A: Nearly 3 GW is locked in for this year, and 10 GW of additions in 2027 is highly certain, with the probability of surpassing 20 GW rising rapidly. About 220k GB300 units are energized each month, and the pace will accelerate next year. A plan is in place to add 20 GW of power and cooling by end-2027 (totaling ~23 GW), but specifics are proprietary; management also cautioned the path will not be perfectly smooth.

Public measures include using rocket engine casting capabilities to produce turbine blades and vanes for gas turbines. Suppliers indicated blades/vanes are delivered 12–18 months later than other turbine parts; in-house production can bring power online 12–18 months sooner.

They are also adding solar, wind and other sources, and exploring factory-prefab, modular inference clusters with embedded power and cooling for distributed deployments.

Q: How will you fund the compute scale required?

A: Prioritize operating cash flow, supplemented by multi-channel debt and ecosystem partnerships, while maintaining IG ratings. The company has an IG balance sheet and is in discussions with multiple lenders; compute payback is short, with capacity added by quarter-end expected to contribute cash from H1 2027. Financing can also be arranged with suppliers and on the customer side; management highlighted capital efficiency as rare in the industry.

Q: Pros, cons and hurdles of a merger with Tesla?

A: Personally, the CEO views a merger as a good idea, but the special committees at both companies have not agreed on any terms. At shareholder request, both formed special committees of independent directors; as a conflicted party, the CEO is recused, and management said the market overestimates the likelihood of a deal.

On the Tesla side, approval requires 50% of all shares outstanding (not just votes cast), a high bar. Synergies include super-intelligence software, chip design and TerraFab, robotics, Starmine constellation launch capacity and connectivity.

Q: How will the satellite layer and ground network split roles for Starlink Mobile? Which is the focus: retail wireless or physical AI?

A: S-band will carry most traffic, while low-band handles building penetration. Connectivity revenue could reach hundreds of billions per year. About 85%–93% of mobile traffic in practice rides on Wi‑Fi, and Starlink broadband already carries a large share of that.

The 800 MHz low band has limited capacity but is critical, ensuring indoor coverage without Wi‑Fi. Small cells will also be added to homes, enterprises and towers already equipped with Starlink, reusing existing sites; management said external observers have missed internal factors and a dedicated briefing will follow, without directly prioritizing retail vs. physical AI.

Q: How will you allocate compute between external rentals and internal (Grok, Grok Bot, Cursor), and how do you monetize over the next 12–18 months?

A: Roughly a 50/50 split, flexing around 60/40; rentals are short-term at spot, with a bet on rising $/W value. As models improve, useful intelligence per watt rises and compute value increases; rents for older H100s are already higher than at launch, and short-term renewals price higher per watt.

Hyperscalers and dozens of smaller firms continue to seek capacity, with demand multiples of supply. The company prefers to rent out inference to free training resources; GB300, GB200, TPU, Trainium and H100 are all sold out, and the CEO did not rule out payback shrinking to six months next year.

Q: When will users noticeably feel the capacity uplift from V3 satellites, and how many are needed?

A: It will take several hundred V3 satellites for users to feel a clear improvement. Management expects to reach that around mid-2027, noting the current satellite count is too low for consistent gains.

Q: Progress at the Louisiana Starbase site, and how likely is a first launch by 2029?

A: The internal target is a 2028 first launch. A 2029 first launch is highly likely, with scaled operations during 2029.

<End of text>

Risk disclosure and statement:Dolphin Research disclaimer and general disclosure

Community voices

SPCX closed 139.75, only 3.5% above the 135 IPO price. after day three it was 201.80 leh. good thing i never chase. now everyone hyping Anthropic IPO next week, feels like same movie again

ButterKaya
ButterKaya

$SpaceX(SPCX.US)

🚀SpaceX - Staying Confident Through The Pullback

Back on 21 Oct 2026 I shared my view on SpaceX. Now, i am still holding firm with my paper loss.

My average cost sits at US$148.373 and the price is US$141.67 now.

Deutsche Bank recently noted the market is overestimating SpaceX’s political risks. They see this pullback as a buying chance, with a price target of US$149. That lines up closely with my own long‑term outlook.

Furthermore, another 2 positive updates reinforce my conviction.

First, NASA has selected SpaceX for the CLPS‑2 lunar delivery program, a ten‑year multiple‑award contract, plus a 2028 Starship launch for cislunar communications.

Second, Starlink has rolled out demand‑based dynamic pricing across more US states and into Canada. The new pricing model can lift revenue by matching charges to local network demand.

I know there will still be volatility ahead. But between the NASA contract win, Starlink’s revenue optimisation and Deutsche Bank’s positive take, I am comfortable staying invested for the rebound.

Do you hold SpaceX too?

What is your price target? Let’s discuss.

Fattycat
Fattycat

$SpaceX(SPCX.US)To the moon! Literally!

For this stock, I use the base price of 135usd as a benchmark and DCA in as it drops. Noticed that strangely, it will always bounce up to about 144 or 145usd at least, so that is where I put a take profit at, even though it could run up further.

I don’t have much capital, so I have to look for stocks which I can buy low sell high, and they must be volatile enough with a tendency for public opinion to swing either way. I am still new, learning about options, and have no idea how to short a stock yet. Baby steps, wish me luck!

Sweetheart
Sweetheart

Deutsche Bank sees a potential slowdown in the overall expansion of computing power in Texas as a benefit for SpaceX.

The report notes that SpaceX has demonstrated the ability to build computing capacity faster and at lower cost than its competitors. Its new neocloud contracts with customers include a 90-day cancellation clause, allowing the company to flexibly capture upside when spot market prices rise sharply.

Deutsche Bank believes that if the industry's overall computing power supply is constrained, SpaceX has the ability to significantly raise its prices over the next few years, thereby boosting revenue and EBITDA while reducing capital expenditures.

$SpaceX(SPCX.US) $Nebius(NBIS.US) $IREN(IREN.US) $Coreweave(CRWV.US) $Alphabet(GOOGL.US) $Oracle(ORCL.US)

Equity research
Equity research

$SpaceX(SPCX.US)$NVIDIA(NVDA.US)

Both of the best and true leaders are already their new Congress’s target

Being

Jensen first caught in deep trouble relating to AI chips

Next they will be coming after Elon for his blood🩸

Claiming that he is a betrayal to the 🇺🇸😱

Today again reported at X

Hope both can go through this man made darkness shining over your head right now, many more such things will keep replaying, there will not be peace cos they must get rid of the most wealthiest at all costs!

But both leaders still got to work their ass off for this fight on…

Today our previous PM just warned : More troubles Coming, all to be prepared!

Trade with your Clarity it isn’t the same anymore!

Vt3
Vt3

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