Planet Labs PBC (NYSE:PL) Soars on Strong Q3 Earnings Beat and Raised Guidance

Planet Labs PBC (NYSE:PL) delivered a third-quarter fiscal 2026 earnings report that handily exceeded Wall Street's expectations, sparking a significant positive reaction in its share price. The earth imaging specialist posted record revenue and provided forward guidance that suggests the momentum from a series of new government and commercial contracts is building.

Earnings and Revenue: A Clear Beat

The company's financial performance for the quarter ended October 31, 2025, showcased accelerating growth. Revenue surged 33% year-over-year to a record $81.3 million, decisively beating analyst estimates of approximately $74.1 million. This represents a notable acceleration from the company's recent growth trajectory.

On the bottom line, the story was equally positive. Planet reported a non-GAAP net loss per share of $0.00. This result was a significant improvement over both the prior year's loss and the consensus estimate, which anticipated a loss of $0.04 per share. The company highlighted its fourth consecutive quarter of adjusted EBITDA profitability, which came in at $5.6 million.

Key Q3 FY2026 Results vs. Estimates:

• Revenue: $81.3 million reported vs. ~$74.1 million estimated.
• Non-GAAP EPS: $0.00 reported vs. -$0.04 estimated.
• Performance: Revenue beat by ~9.7%; EPS beat by $0.04.

Market Reaction and Forward Guidance

The market responded enthusiastically to the strong results and an optimistic outlook. Following the announcement, Planet's stock jumped approximately 17% in after-hours trading, a clear signal of investor approval.

Management's guidance for the critical fourth quarter and full fiscal year 2026 further fueled the rally. For Q4, Planet expects revenue between $76 million and $80 million, with a midpoint of $78 million. This outlook surpasses the analyst sales consensus of approximately $76.1 million for the quarter. For the full fiscal year 2026, the company raised its revenue guidance to a range of $297 million to $301 million, up from its previous forecast and aligning closely with the current analyst consensus of around $292.6 million.

Guidance vs. Analyst Expectations:

• Q4 FY2026 Revenue Guidance: $76M - $80M (Midpoint: $78M)
• Analyst Q4 Sales Consensus: ~$76.1M
• Implied Beat at Midpoint: ~2.5%

Strategic Highlights and Contract Momentum

Beyond the headline numbers, the earnings report underscored Planet's strategic progress, particularly in the defense, intelligence, and government sectors. The company announced several significant contract awards and expansions during the quarter, which underpin its growth forecast.

Key business highlights include:

• A $12.8 million prime contract award from the National Geospatial-Intelligence Agency (NGA) under the Luno B program for AI-enabled maritime monitoring.
• Contract renewals and expansions with the National Reconnaissance Office ($13.2M), NASA ($13.5M), and the U.S. Navy ($7.5M).
• A new seven-figure contract expansion with NATO for space-based surveillance.
• The acquisition of AI solutions company Bedrock Research to accelerate its national security offerings.
• Successful launch of next-generation Pelican and SuperDove satellites, and a strategic R&D partnership with Google for in-space AI computing (Project Suncatcher).

CEO Will Marshall pointed to "strong traction with our AI-enabled global monitoring solutions" as a key driver, while CFO Ashley Johnson emphasized the company's strengthened balance sheet, which now holds approximately $677 million in cash and short-term investments following a $460 million convertible debt offering.

Conclusion

Planet Labs' third-quarter report paints a picture of a company hitting its stride. It is not only growing revenue rapidly but is also converting that growth into improved profitability metrics ahead of schedule. The substantial after-market stock move reflects investor confidence that the company's investments in satellite constellations and AI analytics are yielding tangible results, as evidenced by the growing roster of large, recurring contracts with government agencies. The raised guidance suggests management believes this momentum is sustainable into the next fiscal year.

For a detailed look at Planet's historical earnings, future estimates, and analyst ratings, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.