Planet Labs 2026 Q3 Earnings Revenue Surges 32.6% Despite Wider Net Loss

Planet Labs (PL) reported fiscal 2026 Q3 earnings on Dec 10th, 2025, with revenue surging 32.6% year-over-year to $81.25 million, exceeding estimates. The company raised full-year revenue guidance to $297–301 million, reflecting strong demand for its AI-driven satellite solutions and strategic contract wins, including a $12.8M NGA deal and NATO expansion.

Revenue

Planet Labs’ total revenue surged to $81.25 million in Q3 2026, a 32.6% increase from $61.27 million in the prior year. Defense & Intelligence emerged as the dominant segment, contributing $49.37 million, reflecting 70% YoY growth. Commercial revenue stood at $13.06 million, while Civil Government contracts totaled $18.83 million. This diversification underscores the company’s ability to leverage both public and private sector demand, with defense contracts driving the most significant expansion.

Earnings/Net Income

The company’s net loss widened to $59.19 million in Q3 2026, representing a 194.7% increase from $20.08 million in the prior year. Earnings per share deteriorated to -$0.19, a 171.4% wider loss compared to -$0.07 in 2025 Q3. Despite a 33% revenue growth, ongoing investments in satellite fleet expansion and AI initiatives have pressured profitability, signaling continued financial headwinds.

Post-Earnings Price Action Review

Following the earnings report, Planet Labs’ stock surged 16% in early trading, driven by robust revenue growth and optimistic guidance. The shares closed at $12.88, reflecting a 0.93% post-market gain. Analysts highlighted the company’s $734.5M backlog and expanded Berlin manufacturing facility as key catalysts. Short-term volatility is anticipated, given high short interest (13%) and historical post-earnings momentum, with shares averaging a 28% move after four consecutive quarters of strong results.

CEO Commentary

CEO Will Marshall emphasized Q3’s 33% YoY revenue growth, $5.6M Adjusted EBITDA profit, and strategic wins like the NGA’s LUNO B contract. He underscored AI-enabled analytics and the Bedrock Research acquisition as accelerants for growth, while outlining next-gen projects like OWL and SunCatcher. The tone remained optimistic, with confidence in leveraging a $734.5M backlog to sustain FY2027 momentum.

Guidance

Planet Labs guided Q4 revenue to $76–80 million (27% YoY growth at midpoint) and FY2026 revenue to $297–301 million. Adjusted EBITDA for FY2026 is projected at $6–8 million, with Q4 expected to post a $7–$5 million loss. CAPEX of $81–85 million will prioritize satellite fleet investments, while non-GAAP gross margin guidance was updated to 57–58%. The company aims for EBITDA break-even by FY2027.

Additional News

Planet Labs announced the acquisition of Bedrock Research, an AI solutions firm, to accelerate its AI-enabled analytics roadmap. The company also expanded its Berlin satellite manufacturing facility, doubling production capacity for Pelican satellites. Additionally, a partnership with Google on Project Suncatcher aims to enable AI computing in space, further solidifying its leadership in Earth observation technology.

Financial Trends

Planet Labs’ non-GAAP gross margin reached 60% in Q3 2026, up from 38% in FY2022. The company has achieved nine consecutive quarters of gross profit growth, with adjusted EBITDA improving from -$12.0 million in Q3 FY2024 to $5.6 million in Q3 2026. These trends highlight operational efficiency gains amid strategic investments.