Planet Labs PBC (NYSE: PL) saw its shares plummet 7.50% in after-hours trading on Thursday following the release of its fourth-quarter earnings report and disappointing guidance for the upcoming periods. The Earth-imaging satellite company's financial results fell short of analyst expectations, raising concerns about its near-term growth prospects.

For the fourth quarter, Planet Labs reported a loss of $0.12 per share, significantly wider than the analyst consensus estimate of a $0.02 loss. The company's revenue came in at $61.554 million, slightly below the expected $61.9 million. While this represents a 4.59% increase compared to the same period last year, the miss on both top and bottom lines disappointed investors.

Adding to the negative sentiment, Planet Labs provided weaker-than-expected guidance for both the first quarter and full fiscal year 2026. The company forecasts Q1 revenue between $61 million and $63 million, below the analyst projection of $64.6 million. For the full year, Planet Labs expects revenue in the range of $260 million to $280 million, compared to the consensus estimate of $274 million. This outlook suggests potential challenges in maintaining the growth rate investors had anticipated.

Despite some positive metrics, such as a gross margin of 62% and an adjusted gross margin of 65%, the market's focus on the earnings miss and conservative guidance overshadowed these achievements. The after-hours stock plunge reflects investors' concerns about Planet Labs' ability to meet growth expectations in the competitive satellite imagery and data analytics market.