SpaceX: Starlink Is Delivering, and AI Adds a Powerful Third Growth Engine
- Felix Ouma
- 2 days ago
- 8 min read
Summary
I am retaining my Strong Buy rating on SpaceX following the company's second-quarter 2026 results. In my previous thesis, the investment case centered primarily on Starlink generating recurring cash flow while Starship created long-term optionality. Q2 strengthens that thesis while adding an important third pillar: AI infrastructure is rapidly becoming a meaningful revenue and earnings contributor.
Second-quarter revenue increased 92% y/y to $7.8 Bn, while adjusted EBITDA increased 191% to $3.5 Bn. The quarterly net loss narrowed from $1.0 Bn to $541 Mn. More importantly, growth is increasingly diversified across Connectivity, AI and Space.
Starlink continues validating one of the central arguments in my previous thesis. Connectivity revenue increased 66% to $4.3 Bn, Starlink subscribers doubled to 12 Mn, and segment operating income increased 79% to $1.7 Bn. At the same time, enterprise and government revenue increased 108%, strengthening the quality and diversity of Starlink's recurring revenue base.
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