On August 4, 2026, SpaceX released its second-quarter earnings for the period ending June 30. This marks the first quarterly disclosure since the company's initial public offering (IPO) in June, now as a publicly listed company. Revenue rose 92% year-over-year, but capital expenditures ballooned 6.5-fold to $18.369 billion. Of that, 86.2% flowed into the AI segment, far outpacing investment in rockets and satellite connectivity. To understand SpaceX after going public, one needs to look at which of its three segments—Space, Connectivity, and AI—are generating profit, and which are absorbing investment.
$18.3 Billion in Capex, 86% of It Going to AI
Second-quarter revenue reached $7.814 billion, nearly double the $4.071 billion from the same period a year earlier. The operating loss narrowed from $970 million to $143 million, and the net loss was cut roughly in half, from $1.008 billion to $541 million. Revenue growth is clearly evident.
Meanwhile, the shift in capital allocation is even more pronounced. Capital expenditures rose from $2.825 billion in the same period last year to $18.369 billion. Of this, $15.828 billion went to the AI segment, $1.367 billion to Connectivity, and $1.174 billion to Space. AI's share of the total reached 86.2%.
This $18.369 billion figure refers to capex invested in data centers and equipment; it does not include R&D or SG&A expenses. In the same quarter, SpaceX also recorded $3.548 billion in R&D spending. Because infrastructure construction and R&D are proceeding simultaneously within the AI segment, net loss and capital expenditure need to be examined separately to gauge the true investment burden.
Connectivity Is the Only Segment with Operating Profit
Only the Connectivity segment posted an operating profit. Laying out the profit and loss figures for all three segments makes the company's overall earnings structure clear.
| Segment | Revenue | YoY Change | Operating Income/Loss | Capex |
|---|---|---|---|---|
| Space | $962 million | +29% | Loss of $542 million | $1.174 billion |
| Connectivity | $4.291 billion | +66% | Profit of $1.656 billion | $1.367 billion |
| AI | $2.561 billion | +247% | Loss of $1.257 billion | $15.828 billion |
The Connectivity segment's operating profit nearly offset the combined $1.799 billion operating loss from the Space and AI segments. The remaining $143 million shortfall became the company's overall operating loss. In terms of revenue mix as well, Connectivity accounted for 54.9%, surpassing AI's 32.8% and Space's 12.3%. Among the three segments, current operating profitability is concentrated entirely in Connectivity.
Within the Connectivity segment, Starlink subscribers doubled from 6 million to 12 million year-over-year. Meanwhile, monthly ARPU (average revenue per user) fell from $85 to $66. Even so, consumer revenue grew 44%, and enterprise/government revenue grew 108%. The segment's operating profit rose 79% year-over-year to $1.656 billion.
The Space segment conducted 38 launches in the second quarter—10 for customers and 28 for internal purposes—delivering 485 tons to orbit. Even so, the segment posted an operating loss of $542 million. SpaceX cited accelerated R&D spending on Starship as the primary reason the segment's costs rose by $389 million year-over-year. A high launch cadence has not yet translated directly into profitability for the Space segment.
From 1.4GW to 10GW: Compute Infrastructure Expands Ahead of Returns
The AI segment's nameplate compute capacity grew from 0.4GW a year ago to 1.4GW. Of the segment's $2.561 billion in revenue, advertising declined to $367 million, while AI Solutions & Infrastructure grew from $311 million to $2.194 billion. The center of gravity is shifting from an advertising-centered business built around X toward a business of leasing out compute resources externally.
SpaceX stated that it has signed multiple cloud service contracts, with contracted revenue reaching $14.1 billion. Of that, $1.6 billion was recognized as AI infrastructure revenue in the second quarter. Adjusted EBITDA turned positive at $1.146 billion, but GAAP operating income—which includes depreciation and stock-based compensation—showed a loss of $1.257 billion. Because depreciation expenses catch up over time as facilities expand, these two metrics need to be read separately.
On the earnings call, Elon Musk indicated that compute capacity would grow from 1.4GW to at least 10GW by sometime in 2027. SpaceX raised net proceeds of $8.5675 billion in its June IPO and also issued $25 billion in senior notes that same month. Use of IPO proceeds includes expansion of AI compute infrastructure. As of the end of June, cash and cash equivalents plus marketable securities totaled $10.0009 billion. However, the company has not disclosed the total investment required to reach 10GW.
Why the $14.1 Billion in Contracts Can't Be Treated as Confirmed Revenue
The $14.1 billion figure is neither second-quarter revenue nor a long-term fixed backlog. SpaceX defines "contracted revenue" as amounts to be received over a non-cancelable, legally binding contract period. However, once capacity ramp-up is complete, cloud contracts can typically be canceled by either party with 90 days' notice. Actual utilized capacity and contract duration—not the headline contract value—will ultimately determine realized revenue.
There is also concentration risk in the customer base. The Form 10-Q explicitly states that a significant portion of AI infrastructure revenue is concentrated among a small number of customers. If customers migrate to their own infrastructure or reduce their compute needs through more efficient models, utilization of the newly built-out facilities could decline. Beyond securing power and GPUs, delays in construction and permitting could also prevent capacity from coming online as planned.
Therefore, the 10GW target needs to be assessed by tracking facility capacity and profit/loss together. From the third quarter of 2026 onward, it will be worth watching whether growth in the AI segment's operating loss and capital expenditure translates into actual realized revenue as utilized capacity increases. SpaceX's transformation into an AI company will only be validated financially once Connectivity's operating profit exceeds the combined losses of the other two segments, and once the expansion from 1.4GW to 10GW converts into sustained revenue.