TLDRPlanet Labs shares surged 16% Thursday after Q3 revenue of $81.25 million crushed analyst estimates of $71.99 millionQ4 revenue guidance of $76-80 million and fiscal 2026 guidance of $297-301 million both exceed Wall Street expectationsCompany shifting focus to government and defense contracts while commercial sector performance softensBerlin facility expansion will double Pelican satellite production capacity to meet growing demandStock has gained 220% year-to-date driven by defense spending and AI-related tailwindsPlanet Labs stock climbed 16% in early trading Thursday after delivering a solid earnings beat and raising its revenue outlook. Shares reached $15.17 as investors cheered the satellite imaging company’s third-quarter performance.Planet Labs PBC, PLThe company posted Q3 revenue of $81.25 million, crushing analyst expectations of $71.99 million. Planet Labs reported breakeven adjusted earnings per share while recording a GAAP loss of 19 cents per share.$PL (Planet Labs) #earnings are out: pic.twitter.com/rfUBXB6fgw— The Earnings Correspondent (@earnings_guy) December 10, 2025Management delivered upbeat guidance that exceeded Wall Street forecasts. The company expects Q4 revenue between $76 million and $80 million, above the $73.55 million analyst consensus.Defense Contracts Drive GrowthFor fiscal year 2026, Planet Labs projects revenue of $297 million to $301 million. Both quarterly and annual guidance represent increases from prior estimates.The raised outlook reflects recent contract wins and improved pipeline visibility. Management aims to maintain Q4’s revenue growth momentum into fiscal 2027.Planet Labs is pivoting its strategy toward government and defense customers. Commercial sector performance has declined as the company prioritizes defense opportunities.This strategic shift appears to be working. Contract activity in the government sector has strengthened, supporting the company’s higher guidance.CEO William Marshall discussed production plans during the earnings call. The Berlin facility will “roughly double our capacity to build the Pelican satellites,” he said.Marshall highlighted the Tanager program’s methane detection capabilities. The technology is performing well and attracting interest from government clients.European Market OpportunityThe stock has tripled in value this year on defense and AI tailwinds. Planet Labs has benefited from increased government spending on satellite technology.A Seeking Alpha analyst with a buy rating sees European defense as a key growth driver. The analyst believes Planet Labs can win contracts by offering differentiated surveillance solutions.Satellite imaging demand from government agencies continues to grow. Defense work now represents a larger share of Planet Labs’ revenue mix.The Berlin production expansion positions the company to capture more orders. Doubled capacity for Pelican satellites will help meet rising government demand.Recent contract wins have given management better revenue visibility. This confidence shows in the raised Q4 and full-year guidance.The Tanager program adds environmental monitoring capabilities to Planet Labs’ toolkit. Methane detection features could attract additional government contracts.Planet Labs reported breakeven adjusted earnings for Q3 while growing revenue above expectations. The combination of profitability improvement and revenue growth drove the stock’s Thursday rally.The company’s guidance increase from prior quarters reflects both contract wins and stronger pipeline visibility heading into 2026.The post Planet Labs (PL) Stock: Shares Jump 16% on Earnings Beat and Strong Revenue Outlook appeared first on Blockonomi.