PhillipCapital's shift in outlook on SpaceX comes after the company reported adjusted earnings of 45 cents per share and revenue of $14.58 billion for the third quarter, both surpassing market expectations.
Analyst Glenn Thum highlighted three key factors contributing to this performance: new cloud services agreements that increased rental prices, a 91% year-over-year revenue growth from aviation installs and Starshield contracts, and improved profitability from higher-margin cloud services.
Despite this positive outlook, Thum expressed caution regarding SpaceX's full-year 2027 revenue, anticipating delays in scaling its compute business due to cooling and power constraints. Nevertheless, he remains optimistic about the demand for compute services, noting that contracts are renewing at higher prices and new capacity investments are expected to yield quick returns.
Following this news, SpaceX shares rose by 2% in premarket trading