Global financial markets are seeing a relative improvement in risk appetite, supported by the earnings of US companies, while rising oil prices and geopolitical tensions in the Middle East continue to put pressure on inflation expectations and monetary policy.
SpaceX's results exceeded expectations with revenue growth of 161%.
SpaceX, owned by Elon Musk and listed on Nasdaq under the symbol SPCX, announced strong results for the third quarter of 2026, after the close of trading on Tuesday, October 20.
The company's revenue surged to $14.6 billion, representing a 161% year-over-year increase, while net income reached $4.4 billion, compared to a loss of $1.1 billion during the same period last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also jumped by 306% to $8.8 billion.
The growth was driven by the significant expansion in the artificial intelligence sector, which generated $7.6 billion in revenue, accounting for approximately 52% of the company's total revenue, along with a rise in Starlink services revenue to $5.2 billion, representing an annual growth of 69%.
The results reflect SpaceX's transformation into a conglomerate encompassing space, telecommunications, and AI infrastructure, with continued significant investment in computing centers and space technologies. Despite the strong earnings, the company's ability to generate sustainable returns from its AI investments remains a key factor in assessing its future performance.
First: Key developments in other global markets
- US futures tend to rise, with technology stocks outperforming.
- Netflix shares fell more than 6% before the opening bell as a result of a downward revision of advertising revenue forecasts.
- Oil prices continue to rise due to concerns related to the war with Iran and disruptions to energy supplies.
- European markets recorded limited gains, compared to mixed performance in Asian markets.
- Investors continue to focus on corporate earnings and expectations for US monetary policy.
Second: Market indicators and energy prices
German DAX Price Change | 25,489.81 | +0.70%
French CAC 40 | 7,888.32 | +0.60%
FTSE 100 (UK) | 10,741.70 | +0.10%
Brent crude | $110.21 | +1.30%
WTI Crude Oil | $99.40 | +1.60%
EUR/USD | 1.1233 | Slight decrease
USD/JPY | 158.08 | Slight decrease
French CAC 40 | 7,888.32 | +0.60%
FTSE 100 (UK) | 10,741.70 | +0.10%
Brent crude | $110.21 | +1.30%
WTI Crude Oil | $99.40 | +1.60%
EUR/USD | 1.1233 | Slight decrease
USD/JPY | 158.08 | Slight decrease
Third: The results of the companies issued yesterday, Tuesday, October 20
The results of industrial and defense companies showed positive performance, with several major companies exceeding earnings per share expectations, while some raised their annual forecasts.
Company | Actual Earnings Per Share | Expected Earnings Per Share | Result | GE Aerospace | $2.25 | $2.01 | Best
RTX | $2.26 | $1.78 | Best
General Motors | $3.70 | $3.63 | Best
3M | $2.50 | $2.39 | Best
Northrop Grumman | $7.89 | $7.18 | Best
Capital One | $6.69 | $5.50 | Best
Intuitive Surgical | $3.00 | $2.64 | Best
RTX | $2.26 | $1.78 | Best
General Motors | $3.70 | $3.63 | Best
3M | $2.50 | $2.39 | Best
Northrop Grumman | $7.89 | $7.18 | Best
Capital One | $6.69 | $5.50 | Best
Intuitive Surgical | $3.00 | $2.64 | Best
Key developments:
- GE Aerospace's revenue rises to $13.29 billion.
- General Motors announces a $20 billion share buyback program.
- 3M raised its annual profit forecast.
- Netflix posted quarterly results that beat profit expectations, but its stock came under pressure due to weak forward guidance for advertising revenue.
Fourth: Company results released today, Wednesday, October 21, before the opening
AT&T's key results : $32.3 billion in revenue and $0.65 per share adjusted earnings.
Abbott Laboratories | Revenue of $13.01 billion and adjusted earnings of $1.42 per share
Elevance Health | Raising annual profit forecasts
Abbott Laboratories | Revenue of $13.01 billion and adjusted earnings of $1.42 per share
Elevance Health | Raising annual profit forecasts
AT&T reported year-over-year revenue growth of 5.3%, exceeding revenue expectations of $31.69 billion. Despite this, its stock fell by approximately 5% before the market opened.
Abbott reported revenue growth of 14.5%, while reaffirming its full-year adjusted earnings per share forecast in the range of $5.50–$5.55.
Fifth: The most active stocks before the opening of Wall Street
Stock price change (approximate): Super Micro Computer | +12.7%
Dell | +7.0%
HPE | +4.8%
Tesla | +1.5%
Netflix | −6.7%
AT&T | −5.0%
Dell | +7.0%
HPE | +4.8%
Tesla | +1.5%
Netflix | −6.7%
AT&T | −5.0%
Sixth: Companies expected to announce their results after today's close
Tesla | Announcement date mentioned | After closing
Meta Platforms | After Closure
IBM | After the shutdown
Lam Research | After Closure
Texas Instruments | After Closure
CSX | After Closing
Meta Platforms | After Closure
IBM | After the shutdown
Lam Research | After Closure
Texas Instruments | After Closure
CSX | After Closing
The dates mentioned in the announcements need to be checked with the official company calendar.
Seventh: General assessment of the markets
The results of American companies show the ability of a number of sectors to achieve growth in revenues and profits, especially technology, industry and defense.
But markets face three conflicting factors:
- Continued growth in corporate profits is a supporting factor for stock valuations.
- The rise in oil prices and the resulting inflationary pressures on the global economy.
- Uncertainty regarding the path of US interest rates and the timing of any shifts in monetary policy.
Therefore, improved risk appetite does not necessarily mean an end to volatility. The earnings of major companies will be an important indicator of the technology sector's ability to continue supporting US indices, while energy prices and monetary policy remain key sources of risk.
