Analysts Accelerate Forecasts Following SpaceX's Q3 Reveal

Wall Street has responded with increased confidence to a financial report detailing significant growth across the company's primary business segments. Following the release of third-quarter 2026 results, numerous financial institutions have raised their projected share price targets for SpaceX (NASDAQ: SPCX). The company reported revenue of $14.6 billion for the quarter, marking a 161 percent increase compared to the same period last year and surpassing analyst expectations of approximately $12.7 billion.

The financial report also detailed a net profit of $4.4 billion, a notable turnaround from a loss in the prior year, alongside an adjusted EBITDA figure of $8.8 billion. The Super Intelligence division, which focuses on artificial intelligence, generated approximately $7.6 billion in revenue, becoming the largest individual contributor to the company's top line. Its growth rate reached nearly 830 percent year-over-year. The Connectivity segment reported $5.2 billion in revenue, supported by a subscriber base for Starlink that grew to 13.6 million users.

The company's earnings call, held after market close on October 20, served as a catalyst for a wave of upward revisions to future financial projections. Chief Executive Officer Elon Musk and Chief Financial Officer Bret Johnsen provided revenue guidance for the first quarter of 2027 ranging from $33 billion to $37 billion. This guidance for the upcoming quarter stands significantly higher than the approximately $22 billion figure that analysts had previously modeled.

During the call, management also disclosed plans for fourth-quarter capital expenditures of between $35 billion and $40 billion, directed toward the development of artificial intelligence compute infrastructure. Specific projects are planned for sites in Memphis and Southaven. The company's objective is to establish 2.5 to 3 gigawatts of nameplate compute capacity by the end of the year, with a stated pathway to reaching 13 gigawatts or more by the end of 2027.

The call also touched upon the company's launch and satellite programs, noting recent orbital success for Starship and the deployment of V3 satellites. Further points of discussion included the expansion of enterprise services, the adoption of the Grok Bot, plans for spectrum expansion, and the formation of special committees to investigate a potential combination with Tesla. Musk characterized demand from hyperscalers and other customers for compute capacity as relentless.

In response to the report and subsequent call, several financial firms adjusted their outlooks. JPMorgan more than doubled its price target to $500 from $240 while maintaining an Overweight rating. Cantor Fitzgerald lifted its target to $345 from $246 (Overweight), while Barclays raised its target to $300 from $254 (Overweight). Morgan Stanley held an Overweight rating with a $300 target.

Other firms also issued new projections. Citi increased its target to $240 from $200 (Buy), UBS moved to $230 from $210 (Buy), TD Cowen raised its target to $224 from $200 (Buy), Wells Fargo adjusted to $274 from $214, and Clear Street to $248 from $217. Analysts broadly cited the strong quarterly results, accelerating AI compute expansion, Starlink progress, and Starship milestones as drivers of higher long-term growth and earnings power.

Shares closed at $147.79 on October 20. In premarket trading on October 21, the stock price rose by roughly 8 percent. The average analyst price target has moved higher, which reflects greater conviction in SpaceX's trajectory across launch, connectivity, and the Super Intelligence business, even as elevated spending remains a point of focus.