Planet Labs (NYSE:PL) shares soared 35% on Thursday after the company posted a record revenue and breakeven adjusted earnings for Q3.
The company recorded a 33% rise in Q3 revenue to $81.2 million (£60.6 million), up from $61.2 million (£45.7 million) a year earlier. It also posted breakeven adjusted income compared with a loss of $0.03 (£0.02) in the prior year quarter.
Planet Labs operates the biggest constellation of Earth-imaging satellites, offering imagery to help clients track geospatial changes to help them make data-driven decisions for agriculture, finance, and government purposes. The company generates a meaningful portion of revenue from global government contracts, including with the US government.
The company attributes the Q3 beat to robust traction in its AI-enabled global monitoring services. The company also said it will acquire AI-enabled Bedrock Research to support the ongoing business momentum and address rising demand.
‘Since the end of the quarter, we have successfully launched another 2 Pelican satellites as well as 36 Super Doves and announced an R&D initiative with Google to explore scaled AI computing in space,’ CEO Will Marshall said in the earnings press release.
Insights Into Expanding Clientele
Planet Labs secured major contracts during Q3. The company received a $12.8 million (£9.5 million) contract from the National Geospatial-Intelligence Agency in October under the Luno B programme to offer AI-enabled maritime awareness services, including the detection of vessels and tracking regions in Asia-Pacific.
Elsewhere, the National Reconnaissance Office renewed its contract with the company through June 2026 for PlanetScope broad area monitoring data for $13.2 million (£9.8 million). Even NASA awarded Planet Labs a $13.5 million (£10 million) task order to continue supplying PlanetScope data in support of the agency’s Earth science mission.
Furthermore, the US Navy awarded the company a $7.5 million (£5.6 million), six-month contract renewal while NATO expanded its seven-figure contract with the company for space-based surveillance and enhanced warnings.
Advancing AI in Space
In Q3, Planet Labs launched two high-resolution Pelican satellites and 36 SuperDove satellites aboard a SpaceX launch vehicle.
The company will also inaugurate a new satellite manufacturing facility for next-gen Pelican satellites in Germany to address growing demand in Europe.
Its OWL monitoring fleet demo is scheduled for late 2026 and will leverage Nvidia GPUs to power AI capabilities.
Lastly, the company also collaborated with Google on a research project called Project Suncatcher to place Google’s tensor processing units in space. The idea is to utilise the sun’s energy and explore the opportunity for scaling AI computing in space. Two prototype satellites are scheduled for launch in 2027.
Fiscal Q4 Earnings Guidance Set
Planet Labs also offered its quarterly and fiscal year guidance in its earnings release. The company guided for fiscal Q4 revenue of $76 million to $80 million (£56.7 million and £59.7 million). Adjusted gross margin is expected to be between 50% and 52%.
For fiscal 2026, the company expects revenue between $297 million and $301 million (£221.9 million and £224.9 million). Capital expenditures are expected to be between $81 million and $85 million (£60.5 million and £63.5 million).
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Originally published on IBTimes UK
