SpaceX (NASDAQ:SPCX) Reports 92% Revenue Growth, $60B Cursor Deal, and 12M Starlink Subscribers

Space Exploration Technologies Corp. (NASDAQ: SPCX) reported second-quarter 2026 revenue of $7.814 billion, up 92% from $4.071 billion a year earlier, while net loss narrowed to $541 million from $1.008 billion in the prior-year period. The company simultaneously announced a definitive agreement to acquire Cursor, an AI coding platform, for $60 billion, underscoring the scale of its ambitions beyond launch and connectivity. Shares gained 9.43% on Tuesday, August 4, while the S&P 500 rose 1.80%.

Q2 2026 Financial Highlights

• Total revenue: $7.814 billion, up 92% year-over-year, with contributions from Space ($962M), Connectivity ($4.291B), and AI ($2.561B)
• Adjusted EBITDA: $3.538 billion, up 191% from $1.214 billion in Q2 2025, reflecting operating leverage across segments
• Net loss of $541 million, an improvement of $467 million compared to a net loss of $1.008 billion in Q2 2025
• Backlog of $47.5 billion and $100 billion in cash, cash equivalents, and marketable securities at quarter end
• $14.1 billion in contracted Cloud Services Agreements closed during the quarter, anchoring the AI segment's growth

What Drove the Results

The Connectivity segment was the primary profit engine, generating $4.291 billion in revenue, up 66% year-over-year, and $1.656 billion in income from operations, a 79% year-over-year increase. Starlink subscribers reached 12.0 million at June 30, 2026, doubling from 6.0 million a year earlier and up 1.7 million sequentially from March 31, 2026. Average revenue per user held at $66 per month, consistent with Q1 2026, though down from $85 in Q2 2025 as the subscriber base expanded into lower-priced international markets. Enterprise and Government revenues within Connectivity rose 108% year-over-year to $1.806 billion, driven partly by over $6 billion in multi-year U.S. government contracts for Starshield, SpaceX's secure satellite network for national security applications.

The AI segment generated $2.561 billion in revenue in Q2, up from $737 million in Q2 2025, fueled by $2.194 billion in AI solutions and infrastructure revenues as cloud service agreements accelerated. AI capital expenditure reached $15.828 billion in the quarter alone, bringing the first-half total to $23.551 billion versus $3.316 billion in the same period of 2025. The segment posted a loss from operations of $1.257 billion, narrowing from a $1.524 billion loss in Q2 2025, and turned segment Adjusted EBITDA positive at $1.146 billion, compared to negative $276 million a year ago. Total company capital expenditure for Q2 was $18.369 billion, up from $2.825 billion in Q2 2025, reflecting the scale of infrastructure build-out.

The Space segment posted revenue of $962 million, up 29% year-over-year, driven by a higher number of large customer launches. SpaceX completed two Starship V3 flight tests in the 90 days ended June 30, including Flight 12 in May, which achieved a precision landing of Starship's upper stage and deployed modified V2 Starlink satellites. The company also completed Flight 13 subsequent to quarter-end in July, deploying 20 production V3 satellites and executing what it described as the softest-ever Starship splashdown.

Why It Matters

The Cursor acquisition, announced at $60 billion, represents a commitment to the AI enterprise software market that extends well beyond SpaceX's hardware and infrastructure roots. Combined with $14.1 billion in contracted Cloud Services Agreements and nameplate AI compute capacity reaching 1.4 gigawatts at quarter-end from 0.4 gigawatts a year ago, the company is building an integrated AI infrastructure and software platform alongside its launch and connectivity businesses. The company also noted Grok 4.5, described as its most powerful AI model, was released in July. Additionally, SpaceX received FCC approval of the EchoStar license transfer covering 65 MHz of U.S. spectrum and certain global Mobile Satellite Service licenses, broadening its regulatory footprint for Starlink mobile services.

Wall Street View

Analyst sentiment has shifted notably in recent months. As of August 1, 2026, the consensus stands at 12 Strong Buy and 20 Buy recommendations, compared to 6 Strong Buy and 6 Buy as of July 1, reflecting broad positive re-rating following the company's first public earnings disclosure.

Investor Takeaway

The tension in SpaceX's investment case is visible in the numbers: Connectivity is generating real, growing profit, with $2.597 billion in segment Adjusted EBITDA in Q2, while the AI segment consumed $15.828 billion in capital expenditure in a single quarter against $2.561 billion in revenue. The $60 billion Cursor acquisition adds a software layer to that AI bet, but also introduces integration and execution risk at a scale that dwarfs any prior SpaceX acquisition. Investors willing to underwrite the AI capital cycle against the backdrop of a structurally profitable connectivity business will find the quarter encouraging; those focused on near-term free cash flow will note that total first-half capital expenditure of $28.476 billion has outpaced total first-half revenue of $12.508 billion by a wide margin.