This article first appeared on GuruFocus.
SpaceX (SPCX) expects a new AI computing contract to add about $1.11 billion in monthly revenue from December, increasing management's confidence in reaching a $100 billion annual revenue run rate.
CFO Bret Johnsen said the agreement with an undisclosed customer would equal roughly $13 billion on a full-year annualized basis. The target, however, refers to a revenue pace rather than $100 billion of reported 2026 sales.
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SpaceX generated $7.8 billion in second-quarter revenue, or about $2.6 billion monthly. Reaching the $100 billion annual pace would require monthly revenue of about $8.3 billion. The company also has a $6.7 billion cloud-services contract scheduled to ramp in October, while AI computing arrangements with Google (GOOG) and Anthropic are generating more than $2 billion monthly.
Johnsen said SpaceX expects slightly more than two gigawatts of terrestrial AI capacity by year-end and is targeting five to 10 gigawatts in 2027. The company is also exploring orbital computing as power constraints grow on Earth.
The revenue goal depends on contract ramp-ups, meaning delays or slower deployment could leave SpaceX below the targeted pace.