SpaceX Stock Surges as JPMorgan Doubles Price Target to $500

SpaceX shares surged in early trading on October 21, 2026, following a transformative earnings report released after the market closed on October 20.

The company reported third-quarter revenue of $14.6 billion, a 161 percent year-over-year increase that significantly exceeded the consensus estimate of approximately $12.7 billion. This robust performance allowed SpaceX to swing to a net profit of $4.4 billion, reversing a loss recorded in the same period last year, while adjusted EBITDA reached $8.8 billion. The Super Intelligence division emerged as the largest revenue contributor, generating roughly $7.6 billion and growing nearly 830 percent year-over-year. Meanwhile, the Connectivity segment delivered $5.2 billion in revenue, expanding the Starlink consumer base to 13.6 million subscribers.

During the earnings call, Chief Executive Officer Elon Musk and Chief Financial Officer Bret Johnsen provided guidance for the first quarter of 2027, projecting revenue between $33 billion and $37 billion. This outlook substantially outperformed the roughly $22 billion modeled by analysts. Management also outlined fourth-quarter capital expenditure plans ranging from $35 billion to $40 billion, primarily focused on AI compute infrastructure at locations such as Memphis and Southaven. The company targets 2.5 to 3 gigawatts of nameplate compute capacity by the end of the year, with pathways discussed to reach 13 gigawatts or more by the end of 2027. Musk noted that relentless demand from hyperscalers is supporting payback periods of less than a year, potentially as short as six months. Additional highlights included recent orbital successes with Starship, V3 satellite deployments, and the formation of special committees to explore a potential combination with Tesla.

The bullish financials and strategic updates prompted a rapid reassessment of SpaceX’s valuation across major financial institutions. JPMorgan more than doubled its price target to $500 from $240 while maintaining an Overweight rating. Cantor Fitzgerald raised its target to $345 from $246, and Barclays increased its projection to $300 from $254. Citi lifted its target to $240 from $200, while UBS moved to $230 from $210 and TD Cowen raised its target to $224 from $200. Morgan Stanley held its Overweight rating with a $300 target. Other firms, including Wells Fargo and Clear Street, also adjusted their targets higher to $274 and $248, respectively.

Analysts broadly cited the strong quarterly results, accelerating AI compute expansion, and progress in Starlink and Starship operations as key drivers for higher long-term growth expectations. Although elevated spending remains a point of focus for investors, the collective upward revisions reflect greater conviction in the company's trajectory across its launch, connectivity, and Super Intelligence businesses.

Following a close at $147.79 on October 20, SpaceX stock jumped roughly 8 percent in premarket trading on October 21. Investors are currently digesting the earnings data and the newly elevated price targets, which have significantly raised the average analyst projection for the company’s future performance.