SpaceX said Starlink doubled its subscriber base from a year earlier while lower-priced plans pressured ARPU and fast-growing AI infrastructure helped lift total revenue and profitability.
Starlink had 12 million global subscribers at the end of June, doubling from 6 million a year earlier and rising by 1.7 million from the prior quarter, as SpaceX’s first earnings report since its initial public offering showed rapid expansion in satellite connectivity and AI infrastructure. Total revenue rose 92% year-over-year to $7.8 billion in the April-June quarter of fiscal 2026. The connectivity segment, which includes Starlink, generated $4.291 billion in revenue, up 66% from a year earlier. Consumer revenue increased 44% to $2.485 billion, while enterprise and government revenue roughly doubled to $1.806 billion and accounted for just over 40% of the segment total. Segment operating profit climbed 79% to $1.656 billion. Starlink’s average monthly revenue per user fell 22% to $66 from $85 a year earlier, though SpaceX said ARPU was unchanged from the first quarter, indicating the decline may have stabilized. The company attributed the shift in revenue mix to wider uptake of lower-priced plans in emerging markets and a growing contribution from enterprise-scale and government contracts. That higher-value business included a major contract with American Airlines and the start of in-flight internet service for Southwest Airlines and Virgin Atlantic. SpaceX also expanded Starlink Mobile partnerships with SoftBank, NTT Docomo and Spark NZ to support direct-to-device coverage beyond terrestrial networks, while Starshield secured multi-year U.S. government contracts worth more than $6 billion. As of end-June, Starlink had 10,200 satellites in orbit and offered service in 167 countries. AI infrastructure was the fastest-growing business line, with revenue surging 247% to $2.6 billion. SpaceX said new cloud contracts added $1.6 billion in AI infrastructure revenue during the quarter, computing capacity reached 1.4 gigawatts and contracted AI cloud sales totaled $14.1 billion. The company is also partnering with NVIDIA on an orbital AI computing platform called Starmind AI1 satellites using Rubin GPUs and Vera CPUs. Adjusted EBITDA jumped 191% to $3.5 billion, while net loss narrowed to $541 million from $1 billion a year earlier. Heavy spending on AI infrastructure and continued Starship development kept investment elevated, leaving the durability of SpaceX’s improving profitability tied to growth in communications, government security services and AI cloud computing.