SpaceX Valuation Surge: Wall Street Reprices Stock After Blowout Q3

SpaceX shares are climbing in premarket trading on Tuesday, October 21, 2026, following a wave of significant price target increases from major investment banks. The stock, which closed at $147.79 on Monday, jumped approximately eight percent in early trading as investors reacted to the company’s latest financial disclosures. This movement reflects a broad shift in sentiment among Wall Street analysts, who have revised their long-term valuations upward in response to the company’s strong performance.

The primary driver of this re-rating was SpaceX’s third-quarter earnings report, released after the market closed on October 20. The company reported revenue of $14.6 billion, a 161 percent year-over-year increase that comfortably exceeded the consensus estimate of roughly $12.7 billion. Additionally, SpaceX swung to a net profit of $4.4 billion, reversing a loss from the same period in the previous year, while adjusted EBITDA reached $8.8 billion. These figures suggest a significant acceleration in the company’s path to profitability.

The most striking aspect of the earnings was the rapid growth of the company’s artificial intelligence division, labeled as Super Intelligence. This segment generated approximately $7.6 billion in revenue, nearly 830 percent growth year-over-year, making it the largest revenue contributor for the quarter. The Connectivity segment, primarily driven by Starlink, contributed $5.2 billion, supported by subscriber additions that pushed the total consumer base to 13.6 million users.

During the earnings call, CEO Elon Musk and CFO Bret Johnsen provided forward-looking guidance that further fueled analyst optimism. The company projected first-quarter 2027 revenue between $33 billion and $37 billion, a figure substantially higher than the roughly $22 billion analysts had previously modeled. To support this growth, SpaceX outlined capital expenditure plans of $35 billion to $40 billion for the fourth quarter, focusing heavily on AI compute infrastructure in locations such as Memphis and Southaven.

Management indicated an aggressive expansion plan for computing power, targeting 2.5 to 3 gigawatts of nameplate capacity by the end of the year. They also discussed pathways to reach 13 gigawatts or more by the end of 2027. Musk noted that demand from hyperscalers remains intense, with compute pricing structures that allow for payback periods of less than a year, potentially as short as six months.

In response to these updates, a number of firms adjusted their outlooks. JPMorgan more than doubled its target to $500 from $240, maintaining an Overweight rating. Cantor Fitzgerald raised its target to $345 from $246, while Barclays and Morgan Stanley both set targets at $300. Citi increased its target to $240, UBS to $230, and TD Cowen to $224. Other institutions, including Wells Fargo and Clear Street, also moved their targets higher, citing the strong quarterly results and accelerating AI expansion.

Analysts broadly attributed the higher targets to the strong quarterly performance, the progress of Starlink, and recent milestones for the Starship vehicle, including orbital success and V3 satellite deployment. The report also highlighted the rapid adoption of the Grok Bot, spectrum expansion plans, and the formation of special committees to explore a potential combination with Tesla. These factors collectively point to increased earnings power and long-term growth potential.

While the financial outlook appears robust, the scale of upcoming spending remains a point of focus for investors. The elevated capital expenditure plans signal a heavy investment phase that will be critical for sustaining the projected revenue growth in the AI and connectivity sectors.