Starlink Is SpaceX's Cash Cow

SpaceX has significantly boosted its operating profit (EBITDA), driven primarily by its Starlink satellite internet service. In the second quarter of 2026, the company posted an unadjusted profit of $3.5 billion, up from $1.2 billion in the same period the previous year. The connectivity segment was the largest contributor, generating $2.6 billion – a substantial increase over the $1.6 billion recorded a year earlier. This is according to SpaceX’s first quarterly figures released Tuesday after its blockbuster IPO in June.

While the core rocket launch business continues to post losses – widening from $93 million to $205 million – SpaceX is gaining momentum in new areas. The artificial intelligence segment shows a particularly striking surge: After recording a loss of $276 million in the second quarter of 2025, the division has now generated $1.1 billion, establishing itself as a second major pillar of earnings. According to media reports, the sharp rise in AI-related earnings is likely linked to heavy investment in AI infrastructure, which is increasingly beginning to pay off. At the same time, "neocloud" revenues are fueling growth as SpaceX increasingly monetizes computing capacity and data-driven services optimized for AI applications.

Despite strong operating results, SpaceX remains unprofitable overall. The net loss for the second quarter of 2026 stands at $541 million, compared to approximately $1 billion the previous year when accounting for the cost of interest, taxes, depreciation and amortization. The primary drivers are high depreciation and interest costs resulting from massive investments in rocket development, satellite fleets and infrastructure. While these expenditures weigh on the bottom line in the short term, they could lay the foundation for future growth. However, investors were spooked by the high cost of investments SpaceX continued to generate and stocks slipped upon the release of the quarterly results.

Overall, these figures highlight the company's strategic transformation. SpaceX is increasingly evolving from a space services provider into a diversified technology and infrastructure company. If growth in Starlink and data-driven business models continues, this could further reduce reliance on the capital-intensive space business.