Planet Labs PBC (NYSE:PL) Announces Earnings Results

Planet Labs PBC (NYSE:PL) announced its earnings results on Thursday. The company reported $0.02 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.02) by $0.04, Briefing.com reports. Planet Labs PBC had a negative net margin of 111.17% and a negative return on equity of 105.29%. The business had revenue of $116.05 million during the quarter, compared to the consensus estimate of $104.53 million. During the same quarter last year, the firm earned ($0.07) earnings per share. The business’s revenue for the quarter was up 58.2% on a year-over-year basis.

Here are the key takeaways from Planet Labs PBC’s conference call:

• Record Q2 revenue reached $116 million, up approximately 58% year over year, while non-GAAP gross margin was 59% and adjusted EBITDA was $13.9 million. Growth was led by satellite services and continued momentum in data and AI-enabled solutions.
• Planet raised the low end of its fiscal 2027 outlook, now forecasting revenue of $430 million to $441 million, non-GAAP gross margin of 55% to 57%, and adjusted EBITDA of $3 million to $10 million. Management also expects to remain adjusted free-cash-flow positive for the full year.
• The satellite-services pipeline expanded to more than $4 billion, with over 25% classified as near-term opportunities, including a German dedicated-capacity award worth up to €25 million over five years. Planet also highlighted an $8 million NGA contract and a new European defense agreement.
• Planet is accelerating investment in Pelican and Owl satellites, manufacturing capacity, supply-chain resiliency, and AI solutions, increasing fiscal-year CapEx guidance to approximately $100 million to $115 million. Owl is expected to provide roughly 10 times more data at up to 10 times lower latency, potentially supporting higher pricing and additional applications.
• Q3 revenue is expected to decline sequentially to $101 million to $105 million, partly because the Swedish satellite handover pulled point-in-time revenue into Q2. Q3 is also expected to post an adjusted EBITDA loss of $6 million to $1 million, while the $120 million raised through the ATM program during Q2 creates additional shareholder dilution.

Planet Labs PBC Price Performance

Shares of PL opened at $18.42 on Friday. The company has a market capitalization of $6.56 billion, a P/E ratio of -16.16 and a beta of 2.10. The company has a quick ratio of 2.78, a current ratio of 2.81 and a debt-to-equity ratio of 1.01. The firm has a 50 day moving average of $23.84 and a 200 day moving average of $30.12. Planet Labs PBC has a twelve month low of $6.26 and a twelve month high of $51.76.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Wedbush initiated coverage on Planet Labs PBC in a research report on Wednesday, July 1st. They issued an “outperform” rating and a $50.00 price target on the stock. Craig Hallum lifted their price objective on Planet Labs PBC from $36.00 to $49.00 and gave the company a “buy” rating in a research note on Friday, June 5th. Zacks Research upgraded Planet Labs PBC from a “strong sell” rating to a “hold” rating in a research note on Thursday, July 2nd. Berenberg Bank started coverage on Planet Labs PBC in a report on Wednesday. They issued a “buy” rating and a $25.00 target price on the stock. Finally, Weiss Ratings raised Planet Labs PBC from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Planet Labs PBC currently has an average rating of “Hold” and a consensus price target of $34.56.

Insider Buying and Selling

In other Planet Labs PBC news, Director John W. Raymond sold 6,494 shares of the stock in a transaction on Monday, July 13th. The stock was sold at an average price of $26.16, for a total transaction of $169,883.04. Following the sale, the director directly owned 37,114 shares in the company, valued at approximately $970,902.24. This trade represents a 14.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Ashley F. Johnson sold 75,035 shares of Planet Labs PBC stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $22.08, for a total value of $1,656,772.80. Following the completion of the sale, the chief financial officer directly owned 1,132,122 shares of the company’s stock, valued at approximately $24,997,253.76. The trade was a 6.22% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 171,122 shares of company stock worth $4,148,906 in the last three months. Insiders own 16.42% of the company’s stock.

Institutional Investors Weigh In On Planet Labs PBC

Several institutional investors have recently modified their holdings of the business. Parkside Financial Bank & Trust raised its position in Planet Labs PBC by 92.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 1,550 shares of the company’s stock worth $31,000 after buying an additional 745 shares during the last quarter. Larson Financial Group LLC purchased a new stake in shares of Planet Labs PBC during the 3rd quarter valued at about $39,000. Advisory Services Network LLC purchased a new stake in shares of Planet Labs PBC during the 3rd quarter valued at about $56,000. Wexford Capital LP bought a new stake in shares of Planet Labs PBC in the third quarter worth approximately $63,000. Finally, Quarry LP purchased a new position in shares of Planet Labs PBC during the third quarter valued at approximately $66,000. 41.71% of the stock is owned by hedge funds and other institutional investors.

Planet Labs PBC News Summary

Here are the key news stories impacting Planet Labs PBC this week:

• Positive Sentiment: Strong Q2 execution: Planet reported adjusted earnings of $0.02 per share, versus expectations for a $0.02 loss, while revenue rose 58.2% year over year to $116.1 million, exceeding the $104.5 million consensus estimate. The company said this was its fourth consecutive quarter meeting or exceeding the Rule of 40. Planet Reports Financial Results for Second Quarter of Fiscal Year 2027
• Positive Sentiment: Analyst upgrade: Berenberg Bank upgraded Planet Labs PBC (PL) to “strong buy,” potentially providing support after the recent selloff and signaling confidence in the company’s long-term satellite-imaging and data opportunity.
• Positive Sentiment: Defense demand: Planet signed a seven-figure agreement with a European defense and intelligence customer. The contract adds to investor enthusiasm about government and national-security applications for Planet’s Earth-imaging data, following its broader defense-related momentum. Planet Signs 7-Figure Agreement with European Defense and Intelligence Customer
• Neutral Sentiment: Long-term growth debate: Coverage comparing Planet Labs with Snowflake highlights PL’s approximately 200-satellite constellation and daily Earth-imaging capabilities, but also reflects the stock’s growth-oriented, higher-risk valuation profile.
• Negative Sentiment: Near-term guidance disappointed: Planet forecast fiscal third-quarter revenue of $101 million to $105 million, below the $114.3 million analyst consensus. Full-year fiscal 2027 revenue guidance of $430 million to $441 million was near consensus, but the quarterly shortfall likely outweighed the earnings beat for some investors.
• Negative Sentiment: Recent selling pressure: PL previously declined even after announcing the defense contract, as investors reduced exposure to commercial space stocks. Planet remains unprofitable on a GAAP basis, with a negative net margin and return on equity, adding to valuation sensitivity.

About Planet Labs PBC

Planet Labs PBC is a public benefit corporation that operates one of the largest fleets of Earth-imaging satellites, providing high-frequency, high-resolution imagery and data analytics to a broad range of industries. The company’s multi-spectral satellite constellation captures daily snapshots of the planet, enabling clients to monitor changes in agriculture, forestry, urban development, energy infrastructure and environmental conditions. Planet’s imagery platform is designed to support timely decision-making by transforming raw satellite data into actionable insights for business and government users.

Founded in 2010 by former NASA scientists Will Marshall, Robbie Schingler and Chris Boshuizen, Planet Labs grew from a small startup into a key provider in the satellite imaging sector.