SpaceX, the leading satellite communications company, recently released its Q3 earnings results, providing valuable insights into the company’s growth prospects. The company’s revenue and GAAP EBIT came in ahead of Street estimates, driven by the continued adoption of Starlink across both Consumer and Enterprise & Government segments. Management provided positive commentary around the ability to bring compute capacity online, with line of sight into scaling to 2.5-3GW of nameplate compute by YE26 and the potential to bring an incremental 10GW of compute online in 2027.

However, there were also some negatives to consider. Capex guidance for Q4 came in ahead of Street estimates, primarily due to management’s expectation of bringing additional compute capacity online. GAAP Super Intelligence EBIT came in below Street expectations, driven by elevated levels of SBC related to the Cursor acquisition. Additionally, the elevated levels of capital intensity across 2H26 & 2027 (implied in our updated operating estimates) may lead to future funding needs that could impact the stock until visibility around potential future capital raises is achieved.

Despite these negatives, the company’s Q3 results and future growth prospects are certainly encouraging. Management provided Q1’27 revenue guidance of $33-37bn, which came in well ahead of GSe/Street estimates, while also implying solid sequential growth. The company’s continued optimism around Starship’s long-term ability to scale mass to orbit, as well as the timing of goals and launch cadence, are also positive indicators for the company’s future growth.

Overall, while there are some potential challenges on the horizon, SpaceX’s Q3 results and future growth prospects are certainly promising. As always, it’s important to stay up to date on the latest developments and guidance from the company to make informed investment decisions.