S&P Global announced that it will not alter its criteria for companies seeking entry into its major indices, which poses a challenge for SpaceX as it prepares for a historic IPO aimed at raising $75 billion and achieving a valuation of $1.75 trillion.
The company, founded by Elon Musk, has been innovative in its approach to the IPO process, including plans to involve retail investors more significantly and seeking early index inclusion. However, S&P's rules stipulate that a company must be profitable in its most recent quarter and over the last four quarters to qualify for the S&P 500.
SpaceX reported a net loss of $4.94 billion in 2025, despite a 33% increase in revenue to $18.67 billion, which disqualifies it under the current rules. While S&P did consult with investors about potentially relaxing these requirements, it ultimately decided against making exceptions based solely on market capitalization.
This decision reinforces the credibility of S&P's rules-based approach, as noted by Art Hogan, chief market strategist at B. Riley Wealth. In contrast, Nasdaq has adjusted its rules to facilitate the inclusion of newly listed megacap companies like SpaceX into its Nasdaq 100 index, which could lead to significant buying pressure on SpaceX shares once it joins.
Additionally, S&P Global indicated it would modify entry rules for its broader indices, allowing SpaceX to join less prominent indices like the S&P Total Market Index and the Dow Jones U.S. Total Stock Market Index, while it has already qualified for the Russell U.S. Equity Indexes and the FTSE Global Equity Index Series under new fast-entry rules