Planet Labs Shares Plunge 15% Following Earnings Miss

Shares of Planet Labs tumbled 15% after reporting Q4 losses. Earnings missed expectations, driving investor concern over revenue forecasts and full-year guidance.

Date: 21-03-2025

AI Rating: 4

Earnings Per Share (EPS)
Planet Labs reported a loss of $0.08 per share for fiscal 2025 Q4, which missed analyst expectations of a loss of $0.02. When adjusted for GAAP, the loss deepened to $0.12 per share, signaling a significant earnings miss that could trigger bearish sentiment among investors.

Revenue Growth
For Q4, the company reported revenue of $61.6 million, slightly below the anticipated $61.9 million, marking a 5% growth year-over-year, which is considered weak. Additionally, the fiscal 2026 first-quarter revenue outlook of $62 million falls short of analyst targets.

Full-Year Guidance
Looking into fiscal 2026, Planet Labs estimates revenue between $260 million to $280 million, which at the midpoint is below Wall Street's expectations of $272 million. This outlook contributes to uncertainty among investors.

Profit Margins
On a slightly positive note, the gross profit margin improved to 57% for the full year and exceeded 62% in Q4. While this suggests better cost management, it hardly compensates for the overall negative earnings report.

Conclusion
The combination of missing earnings forecasts, a disappointing revenue outlook, and weak sales growth presents a challenging scenario for Planet Labs, leading analysts to suggest potential sell actions for the stock.

Stocks: PL