SpaceX shares dropped 5% as a $1.3 billion AI division loss and negative $25 billion free cash flow overshadowed the company's ambitious $100 billion annual revenue target.
SpaceX reported a $1.3B AI division loss and negative $25B free cash flow, overshadowing its revenue beat and $100B annual revenue target.
SpaceX shares fell over 5% after the company reported a $1.3 billion quarterly loss in its AI division, overshadowing a revenue beat and a $100 billion annual run-rate target. Despite securing a new $13 billion annualized AI hosting contract, the firm posted negative $25 billion in free cash flow for the first half of 2026, highlighting the high capital intensity of its compute expansion.
Investors reacted negatively to the $1.3 billion quarterly loss in the AI division and the significant negative free cash flow of $25 billion, which raised concerns about the profitability of the company's rapid compute expansion.