SpaceX builds and flies reusable rockets, runs the Starlink satellite broadband network, and since 2026 owns the Grok model family, the X platform and the compute behind them. It reports those three as separate segments, so the split between them is filed rather than estimated.
SpaceX's chief executive is its chief operating decision maker, and organises the company into three operating and reportable segments. Quarterly revenue and operating income for each come straight from the segment note in its most recent quarterly report.
| Segment | What it is | Revenue | vs. prior year | Operating income |
|---|---|---|---|---|
| Space | Launch and vehicle development | $962.00M | +29.0% | ($542.00M) |
| Connectivity | Starlink broadband | $4.29B | +65.8% | $1.66B |
| AI | Grok, X and AI infrastructure | $2.56B | +247.5% | ($1.26B) |
| Total | $7.81B | +91.9% | ($143.00M) |
Connectivity is the largest of the three at 54.9% of quarterly revenue, and on these figures it is the only segment earning an operating profit. Space and AI both run at an operating loss, which is why the consolidated result is negative even with revenue close to doubling year over year.
Capital spending shows where the company is placing its bets. Of $28.48B in capital expenditure over the first half of 2026, 82.7% went to the AI segment. That is more than five times what the rocket and satellite businesses spent between them.
Contracted work not yet performed stood at $47.46B at the end of the quarter, of which 56.0% is expected to be recognised as revenue within a year. A further $14.29B sits on the balance sheet as deferred revenue, mostly launch agreements and Starlink enterprise and government contracts paid for in advance.
The original business, and still the one the company is named for. SpaceX describes the Space segment as designing, manufacturing and launching reusable rockets to provide high cadence, reliable and affordable access to space.
The segment splits into two reported lines. Launch Services, which is flights sold to customers, brought in $648.00M in the June 2026 quarter. Launch & Development, which covers development contracts and related work, added $314.00M. Together they made $962.00M, the smallest of the three segments, at an operating loss of $542.00M.
Reusability is what changed the economics. SpaceX spent its first six years failing to reach orbit at all, then reached it on the fourth attempt of the small Falcon 1 rocket in September 2008, becoming the first private company to put a liquid-fuelled rocket into orbit. Falcon 9 flew for the first time in June 2010.
The step that mattered commercially came in December 2015, when a Falcon 9 first stage flew to space and then landed back on a pad intact. A landing at sea followed in April 2016, and the first re-flight of a recovered booster in March 2017. Once boosters could be flown again, the marginal cost of a launch fell far enough that SpaceX took the majority of the world's commercial launch volume.
Falcon Heavy, three Falcon 9 cores flown together, debuted in February 2018. Starship, the fully reusable vehicle intended to replace both, first flew in April 2023 and spent the following three years working through failures in public: two vehicles lost in November 2023, the first controlled splashdown in March 2024, and the first catch of a returning booster by the launch tower in October 2024. Its twelfth flight test in May 2026 carried payload to orbit for the first time.
SpaceX's other long-running space business is crewed and uncrewed spacecraft. NASA's Commercial Orbital Transportation Services programme awarded SpaceX $396 million in 2006 to demonstrate cargo delivery, followed by a $1.6 billion Commercial Resupply Services contract in December 2008, at a point when the company had reached orbit exactly once.
Dragon first visited the International Space Station in December 2010 and delivered cargo to it in May 2012. Crew Dragon carried astronauts Doug Hurley and Bob Behnken to the station in May 2020, the first crewed orbital launch from American soil since the Space Shuttle retired in 2011. Government work remains a large share of the segment: two customers each accounted for more than 10% of consolidated revenue in the June 2026 quarter.
SpaceX describes the Connectivity segment as a worldwide high-speed, low-latency broadband network powered by thousands of Starlink satellites in low Earth orbit, serving consumer, enterprise and government customers.
Consumer subscriptions brought in $2.49B in the June 2026 quarter and enterprise and government contracts, which include Starlink's mobile offerings, brought in $1.81B. Segment revenue of $4.29B was up +65.8% on the same quarter a year earlier, at an operating profit of $1.66B.
Starlink went from a test pair of satellites in February 2018 to a first operational batch of sixty in May 2019. Service opened to a limited group of testers in July 2020, widened to a public beta that October, and took open pre-orders in early 2021.
Subscriber growth has compounded steadily: roughly 100,000 customers by June 2021, a million by December 2022, 2.3 million by the end of 2023, 4.4 million by the end of 2024, and around 12 million by mid-2026. The constellation behind them passed 10,000 satellites in orbit during 2026, which is more operational spacecraft than every other operator combined has ever flown.
Starlink is also the reason the launch business and the broadband business are hard to separate. SpaceX is Starlink's own largest launch customer, and the satellites are built and flown in-house, so the cost of putting the network up never leaves the company. Independent estimates put Starlink's first profitable year at 2024 and its 2025 revenue at roughly $11 billion.
Satellite broadband to a fixed dish is one business. Broadband straight to an ordinary phone is a much larger one, and it needs licensed terrestrial mobile spectrum. SpaceX agreed to buy EchoStar's licences for 50 MHz of AWS-4 and H-block spectrum on September 7, 2025, then amended the agreement on November 5, 2025 to add up to 15 MHz of unpaired AWS-3 spectrum.
The transfer runs in two steps through a Nevada business trust: the licences moved to the trust once the FCC approved the deal on May 12, 2026, and they move on to SpaceX at a later acquisition closing. SpaceX had paid $856 million into the structure by the end of June 2026, carried as a prepaid asset until that closing, at which point it becomes an intangible asset.
The wider transaction has been reported at around $17 billion in cash and stock. Direct-to-phone service is already running in a limited form: SpaceX has partnerships with T-Mobile in the United States, Rogers in Canada, One NZ in New Zealand, Optus in Australia and Kyivstar in Ukraine, most of them starting with text messaging.
SpaceX describes the AI segment as a vertically integrated AI platform spanning the Grok large language model, AI products for consumer and enterprise customers, X as a real-time information and entertainment platform, and the computing infrastructure behind all of it.
AI Solutions & Infrastructure brought in $2.19B in the June 2026 quarter, against $311.00M a year earlier, a rise of +605.5%. Advertising, which is largely X, brought in $367.00M, down from $426.00M. The segment lost $1.26B at the operating line and absorbed $23.55B of capital spending in the first half of the year.
This segment did not exist inside SpaceX two years ago. It arrived whole, through a chain of mergers that ran through Elon Musk's other companies before landing here, and it now spends more capital than the rocket and satellite businesses put together.
The chain is set out in SpaceX's own quarterly report, which treats each step as a merger between entities under common control. Read from the bottom up, it explains why a rocket company reports advertising revenue.
After an unsolicited offer in April 2022 at $54.20 per share, Elon Musk took Twitter, Inc. private in a deal valued at about $44 billion, one of the largest take-private transactions ever completed. The purchase was personal rather than corporate: Twitter did not belong to SpaceX or to Tesla.
X.AI Corp. was incorporated on March 9, 2023 and announced publicly that July, with the stated aim of building a frontier model to compete with the largest AI labs. Its first model, Grok, went into beta that November.
Twitter, Inc. ceased to exist as a separate company in April 2023, merged into X Corp. The consumer rebrand from Twitter to X followed over that summer, taking the bird logo and the word 'tweet' with it.
xAI took over X Holdings Corp. and X.AI Corp. in an all-stock transaction that valued X at $33 billion, or $45 billion including debt, against $80 billion for xAI. The logic was that a frontier model and a real-time social platform were more valuable jointly than apart: X supplied data and distribution, xAI supplied the model.
SpaceX completed its acquisition of X.AI Holdings Corp., making it a wholly owned subsidiary. The deal was all-stock, effected through a share exchange, and reportedly valued xAI at around $250 billion. Every xAI preferred share converted into SpaceX common stock on the merger date.
SpaceX closed its merger with Anysphere, Inc., the company behind the Cursor coding assistant, issuing 389,289,254 Class A shares at an implied equity value of $60.0 billion. SpaceX had taken an option over Cursor in April 2026, exercised it in June and closed in August, alongside an agreement to supply Cursor with GPU compute and to develop models jointly.
Grok is trained on Colossus, xAI's cluster in Memphis, Tennessee, which came online in December 2024 and draws up to 150 megawatts at peak. xAI set a target of a million GPUs at the end of 2025. The capital spending figures above are what that target looks like on a balance sheet.
SpaceX designs no chips of its own. Its 2026 acquisition of xAI ties it to the AI hardware stack that trains Grok, and the AI segment now takes the large majority of the company's capital spending.
Nvidia GPUs power Colossus, the Memphis cluster that xAI, now a SpaceX subsidiary, trains Grok on. SpaceX put more than $23B of capital expenditure into its AI segment in the first half of 2026 alone, which makes Nvidia the closest public-market read on what that build-out costs.
TSMC fabricates the advanced processors that every frontier AI training run depends on, including the Nvidia GPUs in xAI's Colossus cluster.
Buy TSM →For a stock-market view of SpaceX alongside other AI-exposed names, see SpaceX on Buy AI Stock.
SpaceX was founded on March 14, 2002 in El Segundo, California by Elon Musk, who is still chief executive. Its registered office moved to Starbase, Texas in 2024, and its filings now give 1 Rocket Road, Starbase as the principal executive address. For the ownership structure behind it, including the dual-class voting split and the four holders who have filed as beneficial owners, see our investors page.