PL Stock Earnings Review: The Sky’s the Limit for Planet Labs

Planet Labs [PL] is a satellite-imaging company operating one of the world’s largest fleets of Earth-observation satellites, designed to provide high-frequency, high-resolution data for governments, enterprises and NGOs. 

The firm’s core value lies in its data-as-a-service model: customers pay for continuous geospatial feeds, analytics layers and historical datasets. 

Within that, Planet is increasingly leaning into artificial intelligence (AI), as President and CFO Ashley Johnson told OPTO Sessions earlier this year: “I think the data sets that we have combined with AI will unlock the ability to understand things about our planet that we’re just not looking at today because we don’t even realize it’s there.”

Although profitability remains a challenge and the stock has seen volatility, Planet is positioned as a differentiated player in the expanding geospatial-intelligence sector, with strong long-term demand tailwinds. As such, investors were paying avid attention to the firm’s earnings call earlier this week. Let’s dive straight into the numbers. 

Q3 Results

Planet Labs reported Q3 revenue of $81.3m, surpassing the Zacks Consensus Estimate by 12.96%. This was up from $61.27m a year earlier, representing 33% year-over-year growth driven largely by government contracts and satellite services. The company has exceeded consensus revenue expectations three times over the last four quarters.

Planet logged a non-GAAP gross margin of 60% and an adjusted EBITDA profit of $5.6m. Capital expenditures reached $27.7m, above prior guidance due to strategic prepayments for hardware and launch services. 

Planet Labs ended the quarter with approximately $677m in cash, cash equivalents and short-term investments, a sequential increase of about $406m. Remaining performance obligations totaled $672m, with one-third expected to be recognized within 12 months, while backlog reached $734m, 37% of which is slated for conversion in the coming year.

The company highlighted continued acceleration, including a 216% year-over-year increase in backlog and a third consecutive quarter of positive free cash flow, and reiterated expectations for adjusted EBITDA profitability in FY 2026. 

Planet reported break-even EPS for the quarter, exceeding the Zacks Consensus Estimate of a $0.02 loss and improving from a $0.02 loss in the year-ago period. This represents an earnings surprise of 100%. In the prior quarter, the company met expectations exactly, posting a $0.03 loss per share. Over the past four quarters, Planet Labs has beaten consensus EPS estimates twice.

Segment Breakdown

The Defense and Intelligence segment led performance, with Q3 revenue growth exceeding 70% year-over-year and more than 15% quarter-over-quarter, supported by major contract wins across the National Geospatial-Intelligence Agency, the National Reconnaissance Office, the US Navy and NATO. 

Civil government revenue grew modestly, strengthened by new NASA task orders, while commercial revenue declined as Planet Labs’ customer mix shifted toward government clients, though management cited long-term commercial opportunities, including a new operational contract with AXA.

Growth was globally distributed: Asia Pacific and EMEA were both up 38% year-over-year, while North America was up 30% and Latin America 7%.

The company highlighted several operational milestones, including the deployment of two high-resolution Pelican satellites and 36 SuperDoves, along with the expansion of its Berlin manufacturing facility, which is expected to double satellite production capacity. It also introduced the next-generation Owl fleet, designed to deliver 1-meter resolution monitoring, and advanced Project Suncatcher, a funded R&D collaboration with Alphabet’s [GOOGL] Google aimed at enabling large-scale AI computing in space.

Planet Labs also confirmed the acquisition of Bedrock Research, an AI solutions firm, describing the deal as a strategic step to accelerate the development of its AI-enabled product roadmap.

Q4 Outlook

The firm is cheerful about its prospects.

Planet Labs provided Q4 guidance of revenue between $76m and $80m, implying approximately 27% year-over-year growth at the midpoint. Non-GAAP gross margin is expected to range from 50% to 52%, with an adjusted EBITDA loss projected between $7m and $5m. 

For the full fiscal year 2026, the company anticipates revenue of $297m to $301m, a non-GAAP gross margin of 57–58%, adjusted EBITDA profit of $6m–8m and capital expenditures of $81m–$85m.

Guidance for both Q4 and the full year has been raised compared to the prior quarter, reflecting recent contract wins, improved visibility and management’s focus on sustaining the Q4 revenue growth trajectory into fiscal year 2027.

Eyes in the Skies: PL vs BKSY vs SATL

Let’s give those figures a little more context by quickly comparing Planet Labs to two peers in the broader space.

BlackSky Technology [BKSY] focuses on real‑time, high‑resolution Earth imagery and geospatial intelligence with a growing satellite constellation and analytics platform. It targets government and commercial clients requiring rapid revisit times and actionable data, emphasizing low‑latency delivery and cloud‑based services. BlackSky’s revenue growth has been variable and it remains unprofitable, but its niche in real‑time imaging distinguishes it from broader daily‑coverage peers like Planet Labs. 

Meanwhile, Satellogic [SATL] offers high‑resolution Earth observation with ambitions to scale a global constellation capable of frequent revisits and AI‑enhanced data processing. The company aims for broad coverage with sub‑meter imagery and integrated analytics, positioning itself between high‑resolution specialists and mass‑coverage providers. While still loss‑making, Satellogic’s strategic focus on resolution and edge computing targets expanding commercial demand.

Source: Yahoo Finance

Planet Labs, BlackSky and Satellogic all operate within the commercial Earth observation segment but differ in scale, fundamentals and strategic emphasis. 

Planet Labs leads in fleet size and daily global coverage, leveraging subscription‑based recurring revenue and a large historical data archive, though it remains net loss‑making while scaling. 

BlackSky prioritizes real‑time, high‑frequency imaging with rapid revisit. Growth is more niche and its financial performance shows variability, with ongoing investment weighing on profitability. 

Satellogic sits between the two, pursuing sub‑meter resolution with AI‑enabled processing and an expanding satellite constellation, balancing growth investment against revenue traction. 

Fundamentally, Planet Labs combines the broadest coverage and strongest backlog visibility, BlackSky emphasizes immediacy of insight and Satellogic targets high image quality with scalable analytics, making each suitable for different use cases within Earth observation.

For investors, Planet Labs offers the most diversified and predictable revenue stream, underpinned by government contracts and a large satellite fleet. BlackSky may appeal to those seeking high‑frequency, niche intelligence plays, while Satellogic provides exposure to high-resolution, AI-driven analytics. Each carries execution and profitability risks typical of rapidly scaling space-based businesses.

PL Stock: The Investment Case

Planet Labs’ Q3 results and updated guidance reinforce its position as a leading commercial Earth-observation company, with a strong mix of government and satellite services driving 33% year-over-year revenue growth and an expanding backlog of $734m. 

The company’s sizable satellite fleet drives recurring revenue potential and long-term visibility, while initiatives like Project Suncatcher and the Bedrock Research acquisition signal a strategic pivot toward AI-enhanced analytics. Investors can view Planet Labs as a play on high-frequency, actionable geospatial data with expanding government and commercial adoption.

However, the business is capital-intensive, with elevated capex requirements and ongoing adjusted EBITDA losses in the near term. Commercial revenue growth is uneven, and execution risks could affect profitability.