SpaceX IPO Filing Shows $1.75T Valuation, Starlink Profit Surge on May 27

SpaceX published its landmark S-1 filing on May 20, 2026, unveiling a $1.75 trillion valuation and detailed financials for the first time. Starlink, the satellite internet division, posted $11.4 billion in revenue and $4.4 billion in operating income during 2025, with 10.3 million subscribers across 160 countries. The filing also exposed tensions between Starlink’s cash generation and xAI’s heavy cash burn, raising questions about Elon Musk’s ability to fund both ventures simultaneously.

Starlink Emerges as Cash Machine

Starlink generated $11.4 billion in revenue in 2025 and $4.4 billion in operating income, establishing itself as a highly profitable satellite internet provider. The business grew to 10.3 million subscribers across more than 160 countries. Analysts called the connectivity segment a “cash machine” with a strong competitive moat and scale. However, first-quarter 2026 results show slower cash generation as the business nears capacity. Starlink is pushing into emerging markets at lower price points, which is reducing average revenue per user and forcing the company to invest heavily in new satellites to continue growth.

xAI Partnership Reveals Infrastructure Strategy

SpaceX’s S-1 filing disclosed a $15 billion annual deal with AI company Anthropic to provide compute infrastructure and data center services. This partnership signals Musk’s plan to position SpaceX as a monopolistic infrastructure play for AI companies. The filing also revealed deleted disclosures about xAI’s AI infrastructure costs, with payback periods as short as 2.2 months even at double the disclosed cost. Despite the attractive economics, xAI remains a cash-consuming operation that contrasts sharply with Starlink’s profitability.

IPO Timeline and Valuation Multiples

SpaceX is targeting a mid-June debut on Nasdaq under ticker SPCX, with a possible roadshow launch on June 4, pricing as early as June 11, and trading as early as June 12. Reuters reported a possible raise of about $75 billion at the $1.75 trillion valuation. The valuation represents a 92x sales multiple, which analysts say forces investors to question traditional IPO mathematics. FTSE Russell adopted a rule change on May 26 to speed the addition of newly listed large-cap companies to its main indexes, weeks ahead of SpaceX’s expected record-breaking offering.

Financial Performance and Risk Factors

SpaceX posted a $4.28 billion loss in the first three months of 2026 despite raking in $4.69 billion in revenue. For the full year 2025, the company brought in $18.67 billion but faced a loss of $4.94 billion. The S-1 filing revealed that SpaceX’s unconventional corporate arrangements appear to benefit Elon Musk at the expense of other shareholders, according to experts cited in the filing. The combination of SpaceX and xAI complicates the equity story, as the highly cash-generative space infrastructure business sits alongside a cash-consuming AI operation.

Final Thoughts

SpaceX’s $1.75 trillion valuation reflects Starlink’s strong cash generation and AI infrastructure partnerships, but the merger with xAI introduces significant cash burn risks. Investors should watch first-quarter 2026 results closely to assess whether Starlink’s growth can offset xAI’s losses.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.