Highlights

Space Exploration Technologies surpassed analyst forecasts with a 92 percent revenue growth and a reduced loss of $0.09 per share during the second quarter.
Starlink drove results with 4.3 billion dollars in revenue and 1.7 billion dollars in operating income.
Analysts project SpaceX shares could rise 90 percent over the next 12 to 18 months.
10 stocks we prefer over Space Exploration Technologies

Space Exploration Technologies (NASDAQ: SPCX), known as SpaceX, reported strong second-quarter results ended June 30. The company exceeded Wall Street targets on revenue and earnings, with leaders highlighting substantial long-term potential.

Investors showed little enthusiasm. Shares declined after the August 4 release yet recovered part of the drop. Given recent price swings, projecting the level one year forward remains difficult, yet an attempt follows.

Key figures from the quarter

Second-quarter results included several notable items:

Revenue rose 92 percent from the prior year to 7.8 billion dollars.
Loss per share narrowed from 0.26 dollars to 0.09 dollars.
Adjusted EBITDA climbed 191 percent to 1.2 billion dollars.

Overall performance appears robust. A closer look at the three business segments reveals varied trends.

Space revenue grew 29 percent to 962 million dollars, though the segment posted an operating loss of 542 million dollars versus 369 million dollars previously. Launches totaled 38 compared with 44 a year earlier, while orbital payload reached 485 tons. Continued technical advances aim to cut costs to 1 percent of historical norms.

Starlink revenue advanced 66 percent to 4.3 billion dollars, with operating profit up 79 percent to 1.7 billion dollars. Subscriber numbers doubled to 12 million, fueled by enterprise deals that increased 108 percent. Average revenue per user held steady at 66 dollars.

Artificial intelligence revenue surged 247 percent to 2.6 billion dollars, narrowing the operating loss slightly to 1.3 billion dollars. New cloud contracts worth 14 billion dollars contributed 1.4 billion dollars this quarter. Completion of the Cursor acquisition may add further revenue.

Outlook for SpaceX in twelve months

Attention centered on 18.4 billion dollars in capital spending, 15.8 billion dollars of which supported AI initiatives. The chief financial officer expects payback within a year, yet markets remain cautious.

Analysts forecast 39 billion dollars in 2026 revenue, up 108 percent, followed by 73 billion dollars in 2027, an 87 percent rise. The consensus price target stands at 220 dollars, nearly twice the current level.

Continued outperformance could support steadier gains. By next year all lockup restrictions will have expired, potentially reducing volatility. Leadership under Elon Musk and ambitious lunar plans may still introduce uncertainty.

At current sales levels the shares trade at a 63 times price-to-sales multiple, lower than before the report. This valuation embeds significant growth assumptions, so meaningful appreciation may require results to exceed those expectations.

Significant price movement appears unlikely until lockups conclude. With all shares freely tradable, investors can assess value more clearly, allowing the August 2027 price to align more closely with fundamentals.

Is Space Exploration Technologies a buy today?

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Jennifer Saibil holds no positions in mentioned securities. The Motley Fool maintains no positions either. A disclosure policy applies.

Views expressed are those of the author and may not reflect positions of Nasdaq Inc.