Planet Labs 2026 Q3 Earnings 32.6% Revenue Growth Amid Deepened Losses of 194.7%

Planet Labs (PL) reported Q3 2026 earnings that exceeded revenue expectations while maintaining profitability in adjusted metrics. The company raised its full-year revenue guidance to $297–301 million, reflecting strong demand in defense and intelligence sectors. Shares surged 16% post-announcement, driven by optimism over contract wins and strategic investments in AI and satellite expansion.

Revenue

Planet Labs’ total revenue rose 32.6% year-over-year to $81.25 million, with Defense & Intelligence leading growth at $49.37 million. Civil Government revenue reached $18.83 million, while Commercial revenue totaled $13.06 million. This diversification underscores the company’s strategic shift toward government contracts, which now account for 39% of total revenue.

Earnings/Net Income

Despite revenue gains, net losses widened to $59.19 million, a 194.7% increase from 2025 Q3. The per-share loss expanded to $0.19, reflecting ongoing operational challenges. The EPS decline highlights the need for continued cost management amid aggressive growth investments.

Post-Earnings Price Action Review

The strategy of buying Planet Labs shares 30 days post-earnings has historically outperformed, with a CAGR of 39.59% and excess return of 89.17% over three years. Despite a Sharpe ratio of 0.51 and no maximum drawdown, the approach remains speculative.

CEO Commentary

CEO Will Marshall emphasized Q3 as a “strong quarter,” citing $81.3 million in revenue and $5.6 million in Adjusted EBITDA. Strategic priorities include advancing AI-enabled solutions like SunCatcher and expanding manufacturing in Berlin to double Pelican satellite capacity. The company’s $734.5 million backlog and focus on defense contracts signal long-term optimism.

Guidance

For Q4, Planet Labs expects revenue of $76–80 million and non-GAAP gross margin of 50–52%. Full FY2026 guidance includes $297–301 million in revenue, 57–58% gross margin, and $6–8 million in Adjusted EBITDA. Capital expenditures of $81–85 million annually will prioritize satellite fleet growth and AI innovation.

Additional News

1. Berlin Satellite Expansion: Planet Labs will double Pelican satellite production capacity at its Berlin facility, supporting defense and intelligence demand.

2. Acquisition of Bedrock Research: The company announced the acquisition of an AI-enabled solutions firm to accelerate its global monitoring roadmap.

3. Tanager Methane Detection: The Tanager program’s methane detection capabilities have gained traction, with potential for environmental monitoring contracts.