SpaceX Stock Looks Likely to Rally as All Operating Segments Drive Growth

SpaceX (SPCX) stock went ballistic after its public debut on June 12, with the company briefly touching a $3 trillion valuation in mid-June. The euphoria was short-lived, however, and a deep correction ensued. SPCX stock currently trades 42% below its all-time high.

That said, SPCX stock has likely bottomed out. One reason for this view is the company’s recent second-quarter results, which beat revenue and earnings estimates. SpaceX reported revenue of $7.8 billion, which was higher by 92% on a year-over-year (YOY) basis. For the same period, adjusted EBITDA swelled 191% YOY to $3.5 billion. 

Besides the headline numbers, there were several other positives in the report. SpaceX ended Q2 with a robust buffer of $100 billion in cash, cash equivalents, and marketable securities. This provides the company with ample flexibility for aggressive investments. SpaceX also reported a $47.5 billion order backlog, giving it revenue visibility, while all three operating segments showed healthy growth. 

About SpaceX Stock

Headquartered in Starbase, Texas, SpaceX is a provider of launch services and satellite-based broadband globally. The company has three operating segments: Space, Connectivity, and Artificial Intelligence. Built with a mission to provide systems and technologies necessary to make life multi-planetary, SpaceX currently commands a market capitalization of $1.5 trillion.

In the Space segment, the company has conducted approximately 650 launches in total. SpaceX also sports a market share of 80% in terms of global mass to orbit. 

Meanwhile, in the Connectivity business, the company has “the world’s largest and most advanced high-speed, low-latency satellite internet network.” As of the end of Q2, Starlink reported 12 million subscribers with a per-month average revenue per user (ARPU) of $66. 

Finally, the company's AI segment was activated in 2023. SpaceX built a gigawatt-scale AI training cluster and largest coherent supercomputer in 2026. SpaceX also claims to be the only company “capable of building orbital AI compute at scale.”

However, even with strong Q2 results, SPCX stock has been in a downward trend, primarily due to profit-taking after its euphoric public listing. 

The AI Growth Driver

For the first half of 2026, SpaceX reported capital expenditures of $28.5 billion. Of this spending, $23.6 billion was allocated to the company’s AI segment. Clearly, SpaceX is betting big on the AI business, and the results are already showing. 

For Q2 2026, the company reported AI segment revenue growth of 247% to $2.56 billion. For the same period, adjusted EBITDA for the segment came to $1.1 billion, implying a healthy EBITDA margin of about 43%. 

In Q2, SpaceX also announced the acquisition of AI coding start-up Cursor for a consideration of $60 billion. This will likely help the company accelerate its AI enterprise opportunity and compete with the likes of Anthropic and OpenAI. 

During the quarter, the company entered into several cloud service agreements totaling $14.1 billion in contracted sales. This, coupled with an increase in Grok and X subscription revenue, should support robust growth. 

What Do Analysts Say About SPCX Stock?

Based on 34 analysts with coverage, SPCX stock has a consensus “Moderate Buy” rating. While 22 analysts have a “Strong Buy” rating for the stock, two have a “Moderate Buy,” and eight analysts have a “Hold” rating. On the bearish side, one analyst has a “Moderate Sell” rating while another analyst has a “Strong Sell” rating. 

The mean price target of $222.78 represents potential upside of 71% from current levels. Further, the most bullish price target of $800 suggests that SpaceX could climb as much as 515% from here.

Conclusion

For the first six months of 2026, SpaceX reported revenue of $12.5 billion. This implies an annualized revenue potential of $25 billion.

The valuation may still seem stretched considering the price-to-sales (P/S) ratio of 75.8 times. However, the company is on a robust trajectory and acquisitions should support further growth acceleration. SpaceX also deserves a valuation premium, considering its innovation edge. 

Therefore, with a deep correction, SPCX stock looks attractive right now. In my view, as results continue to impress, the stock will likely trend higher.