Wall Street Lifts SpaceX Targets After Strong Q3

The market's reaction to SpaceX's recent financial report was swift and positive. Following the third-quarter results released on October 20, 2026, the company's shares experienced a significant increase in value during after-hours and premarket trading on October 21. This upward movement in the stock price came as numerous financial analysts quickly revised their projections for the stock's future value.

The financial data from the quarter provided a clear picture of the company's recent performance. The company reported revenue of $14.6 billion, which represents a 161 percent increase compared to the same period last year. This figure was notably higher than the consensus estimates of around $12.7 billion. In addition to the revenue, the company reported a net profit of $4.4 billion, a turnaround from a loss in the prior year, with adjusted EBITDA reaching $8.8 billion.

Breaking down the revenue, the company's Super Intelligence (AI) division generated approximately $7.6 billion, becoming its largest source of income with nearly 830 percent year-over-year growth. The Connectivity segment also performed strongly, bringing in $5.2 billion. This was supported by a significant increase in subscribers, with the Starlink consumer base growing to 13.6 million.

The subsequent earnings call on October 20, 2026, had a significant impact on market sentiment. During the call, CEO Elon Musk and CFO Bret Johnsen discussed future plans and expectations. They provided revenue guidance for the first quarter of 2027 in the range of $33 billion to $37 billion, which was substantially above the roughly $22 billion figure that analysts had projected. The company also outlined fourth-quarter capital expenditure plans of $35 billion to $40 billion, focused on building out AI compute infrastructure at sites including Memphis and Southaven.

Other developments mentioned during the call included the recent orbital success of Starship and the deployment of V3 satellites. The company also discussed Starlink pricing, enterprise momentum, and the formation of special committees to explore a possible combination with Tesla.

These details, combined with the quarterly results, prompted a wave of price target increases from financial institutions. JPMorgan, for instance, more than doubled its target to $500 from $240. Cantor Fitzgerald lifted its target to $345 from $246, Barclays raised its target to $300 from $254, and Citi increased its target to $240 from $200.

Other firms followed suit. UBS moved its target to $230 from $210, TD Cowen raised its target to $224 from $200, Wells Fargo adjusted its target to $274 from $214, and Clear Street moved to $248 from $217. Morgan Stanley maintained an Overweight rating with a $300 target. Analysts generally cited the strong quarterly performance, AI compute expansion, Starlink progress, and Starship milestones as the basis for their revised outlooks.

The company's shares, which had closed at $147.79 on October 20, 2026, increased by approximately 8 percent in early premarket trading on October 21 as the market reacted to the financial report and the revised analyst projections. The average analyst price target has moved higher, reflecting greater conviction in SpaceX’s trajectory across launch, connectivity, and the Super Intelligence business, even as elevated spending remains a point of focus.

Looking ahead, the company has laid out plans for significant growth in its AI compute capacity. Management is targeting 2.5 to 3 gigawatts of nameplate compute capacity by year-end and is working toward 13 gigawatts or more by the end of 2027. This focus on expanding AI infrastructure, coupled with the other areas of the business, will be a key area to watch.