Planet Labs shares soar after strong Q3 earnings, AI demand drives growth
Published: 09:54 11 Dec 2025 EST
Planet Labs (NYSE:PL) shares surged 25% on Wednesday after the satellite imaging and AI-focused data company reported third-quarter fiscal 2026 results that beat analysts’ expectations.
Revenue rose 33% year-on-year to $81.3 million, well above the Street estimate of $72.2 million. Recurring revenue accounted for 97% of total annual contract value, highlighting the company’s subscription-driven growth.
Total remaining performance obligations (RPO) climbed 361% to $672 million, while backlog increased 216% to $734 million.
Non-GAAP earnings per share came in at breakeven, beating an expected loss of $0.03, and adjusted EBITDA reached $5.6 million, marking the fourth consecutive profitable quarter. Free cash flow for the year to date was $55.2 million, and cash, cash equivalents, and short-term investments rose 180% to $677.3 million.
“We delivered a strong third quarter, marked by continued momentum in the business, accelerated revenue growth, and excellent progress on our profitability goals,” said CEO Will Marshall.
For the fourth quarter, Planet Labs projected revenue of $76 million to $80 million, non-GAAP gross margins of 50%–52%, and adjusted EBITDA losses of $5 million to $7 million. Full-year fiscal 2026 revenue is expected to be between $297 million and $301 million.
Wedbush analysts said Planet Labs is “well-positioned at the intersection of Space and AI,” citing strong demand for its satellite data solutions and AI-enabled applications. The firm maintained an “Outperform” rating and raised its 12-month price target from $17 to $20, noting “incremental confidence in the PL growth story heading into 2026 and beyond.”
