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Analysts Raise Price Targets After Planet Labs Crushes Earnings Expectations

MarketDash Editorial Team
13 hours ago
Planet Labs exceeded Q3 revenue estimates by over $9 million and raised full-year guidance well above Wall Street expectations, prompting three analysts to increase their price targets. The satellite imaging company's stock surged 37% following the announcement.

Planet Labs PBC (PL) delivered the kind of earnings beat that makes Wall Street sit up and pay attention. The satellite imaging company reported third-quarter revenue of $81.25 million on Wednesday, sailing past analyst estimates of $71.99 million. That's not a small miss by the Street—that's a nearly 13% upside surprise.

The company posted breakeven adjusted earnings per share, though it recorded a loss of 19 cents per share on a GAAP basis. But investors were clearly more interested in the revenue momentum and what it signals about the business trajectory.

"We delivered a strong third quarter, marked by continued momentum in the business, accelerated revenue growth, and excellent progress on our profitability goals," said Will Marshall, co-founder, chair and CEO of Planet Labs. "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."

The forward-looking guidance told an even better story. Planet Labs 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 $281-289 million to a new range of $297-301 million. Wall Street had been modeling $284.11 million, so the new midpoint represents a substantial upgrade.

The market's reaction was swift and decisive. Planet Labs shares rocketed 37% higher to trade at $17.74 on Thursday, reflecting renewed confidence in the company's growth trajectory.

Three analysts wasted no time updating their outlooks on the stock following the earnings announcement:

  • Needham analyst Ryan Koontz maintained a Buy rating and raised the price target from $16 to $22
  • Wedbush analyst Dan Ives kept an Outperform rating while increasing the price target from $17 to $20
  • Clear Street analyst Gregory Pendy maintained a Buy rating and lifted the price target from $14 to $16

The combination of a significant revenue beat, raised guidance, and multiple analyst upgrades suggests Planet Labs may be hitting an inflection point in its business model, particularly as demand for AI-enabled satellite monitoring solutions gains traction with government and institutional clients.

Back to News

Analysts Raise Price Targets After Planet Labs Crushes Earnings Expectations

MarketDash Editorial Team
13 hours ago
Planet Labs exceeded Q3 revenue estimates by over $9 million and raised full-year guidance well above Wall Street expectations, prompting three analysts to increase their price targets. The satellite imaging company's stock surged 37% following the announcement.

Planet Labs PBC (PL) delivered the kind of earnings beat that makes Wall Street sit up and pay attention. The satellite imaging company reported third-quarter revenue of $81.25 million on Wednesday, sailing past analyst estimates of $71.99 million. That's not a small miss by the Street—that's a nearly 13% upside surprise.

The company posted breakeven adjusted earnings per share, though it recorded a loss of 19 cents per share on a GAAP basis. But investors were clearly more interested in the revenue momentum and what it signals about the business trajectory.

"We delivered a strong third quarter, marked by continued momentum in the business, accelerated revenue growth, and excellent progress on our profitability goals," said Will Marshall, co-founder, chair and CEO of Planet Labs. "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."

The forward-looking guidance told an even better story. Planet Labs 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 $281-289 million to a new range of $297-301 million. Wall Street had been modeling $284.11 million, so the new midpoint represents a substantial upgrade.

The market's reaction was swift and decisive. Planet Labs shares rocketed 37% higher to trade at $17.74 on Thursday, reflecting renewed confidence in the company's growth trajectory.

Three analysts wasted no time updating their outlooks on the stock following the earnings announcement:

  • Needham analyst Ryan Koontz maintained a Buy rating and raised the price target from $16 to $22
  • Wedbush analyst Dan Ives kept an Outperform rating while increasing the price target from $17 to $20
  • Clear Street analyst Gregory Pendy maintained a Buy rating and lifted the price target from $14 to $16

The combination of a significant revenue beat, raised guidance, and multiple analyst upgrades suggests Planet Labs may be hitting an inflection point in its business model, particularly as demand for AI-enabled satellite monitoring solutions gains traction with government and institutional clients.