SpaceX posts $4.28B loss on $4.7B revenue as AI costs mount

SpaceX reported a Q2 2026 net loss of $4.28 billion on revenue of $4.7 billion, extending losses at the $2 trillion company.

"SpaceX can convert energy into intelligence at scale and monetize it through diverse consumer and enterprise solutions, leading the next era of AI," Adam Jonas, lead analyst at Morgan Stanley, said. Jonas set a $300 base-case price target on the stock, implying 87% upside from its July 7 close of $160.42.

The loss came on $4.7 billion in quarterly revenue, compared with $18.7 billion for all of 2025. Starlink, the satellite-internet business, generated $11.4 billion in revenue last year with $4.4 billion in operating profit, but those profits are being consumed by spending on the Starship rocket program and the xAI artificial intelligence operation. SpaceX absorbed xAI in a February 2026 merger. The AI segment produced $3.2 billion in 2025 revenue but operates at a deep loss, with management pursuing orbital data centers. Consensus estimates for the quarter were not yet disclosed.

The Q2 results highlight the gap between SpaceX's $2 trillion market capitalization and its financial reality. At roughly 100 times trailing revenue, the stock prices in years of flawless execution across Starlink, Starship, and AI. Shares traded near $147 on July 9, about 35% below their post-IPO high of $225.64 and below the $135 IPO price from June 12. Goldman Sachs analyst Eric Sheridan set a $205 price target on the stock, also a Buy rating, though the gap between the two targets implies a valuation difference of more than $1 trillion.

The widening losses leave SpaceX with no near-term path to profitability, testing investor patience in a stock already trading below its IPO price. The company's first earnings call as a publicly traded entity, expected later this summer, will be the next catalyst for the stock.

This article is for informational purposes only and does not constitute investment advice.