SpaceX delivered a strong first earnings report as a public company, posting quarterly revenue that nearly doubled from a year earlier, powered by rapid growth in its Starlink satellite network and artificial intelligence businesses. Despite the strong results, investors remained cautious as the company signaled that heavy investment spending will continue.

For the quarter ended June 30, SpaceX reported revenue of $7.8 billion, up 92% from $4.1 billion a year ago, surpassing market expectations. The results highlighted continued momentum across the company's core businesses, with Starlink remaining its largest revenue contributor while its AI division emerged as one of the fastest-growing segments.

Starlink revenue climbed 66% year-on-year, accounting for more than half of total company revenue. Meanwhile, SpaceX's AI business expanded by approximately 250%, reflecting growing demand for AI computing services and reinforcing Elon Musk's strategy of building the company into both a space and AI leader.

Looking ahead, SpaceX expects to reach a $100 billion annualised revenue run rate by the end of the year. The company also plans to deploy at least 1,000 next-generation Starlink V3 satellites over the next 12 months while expanding into mobile communications services.

However, SpaceX's aggressive growth strategy comes with significant costs. Capital expenditure surged to more than $18 billion during the quarter, compared with $2.83 billion a year earlier, largely driven by investment in AI infrastructure. Spending on AI alone jumped to $15.83 billion, highlighting the scale of the company's expansion plans.

Chief Executive Elon Musk said SpaceX is rapidly building AI computing capacity and believes it is improving its AI models faster than competitors, while executives indicated that elevated investment levels are likely to continue over the coming quarters.

Despite the earnings beat, SpaceX shares fell in after-hours trading as investors focused on rising capital expenditure and the potential impact of the company's upcoming post-IPO lock-up expiry, which could increase the supply of shares available for trading.

The earnings report marks an encouraging start to SpaceX's life as a publicly listed company, demonstrating strong revenue growth while also underscoring the substantial investment required to support its long-term ambitions in satellite communications, artificial intelligence and next-generation space technology.

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