Planet Labs (PL) just gave investors exactly what they wanted: a solid earnings beat, improving fundamentals, and raised guidance that suggests the satellite imaging business is really taking off.
The Numbers Tell a Growth Story
Planet Labs reported third-quarter fiscal 2026 results Wednesday after the close, and the headline figures were impressive. Revenue hit $81.25 million, sailing past analyst expectations of $71.99 million. That represents 33% growth year-over-year, which isn't bad for a company still working toward consistent profitability.
The company posted breakeven adjusted earnings per share, while GAAP results showed a loss of 19 cents per share. But the real eye-catcher was the backlog number: $734 million as of October 31, up a staggering 216% from the prior year. That kind of backlog growth suggests customers are increasingly betting on satellite imagery as a critical data source.
During the quarter, Planet Labs launched two high-resolution Pelican satellites and 36 SuperDove satellites, continuing to expand its orbital capabilities. The company ended the period with $677 million in total cash, cash equivalents and short-term investments, giving it plenty of runway.
Management Highlights AI and Government Traction
"We delivered a strong third quarter, marked by continued momentum in the business, accelerated revenue growth, and excellent progress on our profitability goals. We're seeing strong traction with our AI-enabled global monitoring solutions, demonstrated by our recent award under the NGA's Luno B program and expansion with NATO," said Will Marshall, co-founder, chair and CEO of Planet Labs.
Looking Ahead
The guidance revision is where things get interesting. Planet Labs now expects fourth-quarter revenue between $76 million and $80 million, compared to analyst estimates of $73.88 million. More significantly, the company raised its full-year revenue guidance from a range of $281 million to $289 million up to $297 million to $301 million. That's comfortably above the $284.11 million analysts were expecting.
Investors clearly liked what they heard. Shares jumped 20.94% to $15.65 in after-hours trading, reflecting confidence in the company's trajectory as it approaches profitability while still delivering strong growth.
