Planet Labs (PL) Secures Nine-Figure Military Contract with Sweden, Stock Up 28%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Source: Fool
- Strong Quarterly Performance: Planet Labs reported a record revenue of $81 million in Q3 fiscal 2026, reflecting a 216% year-over-year growth, indicating robust growth potential in the satellite data service sector and suggesting sustained revenue growth for the coming years.
- Key Contract Secured: The multiyear, nine-figure deal with Sweden's military marks the third major satellite services contract in the past 12 months, further solidifying its position in the government and agency market and enhancing revenue predictability.
- Market Performance Surge: As of January 21, Planet Labs' stock has risen 28% year-to-date and 468% over the past year, reflecting investor confidence in its future growth and profitability despite geopolitical uncertainties.
- Improving Financials: The company is slowing its cash burn, with adjusted EBITDA now positive; while it has yet to achieve GAAP profitability, the stabilization of expenses and growth in recurring revenue suggest that profitability could be realized in the near future.
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Analyst Views on PL
Wall Street analysts forecast PL stock price to fall
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 34.170
Low
12.30
Averages
18.93
High
22.00
Current: 34.170
Low
12.30
Averages
18.93
High
22.00
About PL
Planet Labs PBC is a provider of global, daily satellite imagery and geospatial solutions. It designs, builds, and operates the earth observation fleet of imaging satellites. It provides mission-critical data, advanced insights, and software solutions comprising agriculture, forestry, intelligence, education and finance companies and government agencies, enabling users to derive value from satellite imagery. Its satellite data and analytics reveal actionable insights regarding phenomena, such as deforestation, agriculture, climate change, biodiversity, and supply chains worldwide. Its daily stream of proprietary data and machine learning analytics, delivered over its cloud-native platform, helps companies, governments and civil society use satellite imagery to discover insights as change happens. Its digital technology platform includes Agile Aerospace, Proprietary Big Data, and Platform and Analytics. Its products include Planet Monitoring, Planet Tasking, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Planet Labs Reports Record Revenue Amid $1.5 Billion Equity Offering
- Significant Revenue Growth: Planet Labs reported record revenue of $94.2 million in its latest earnings report, reflecting a 42% year-over-year increase driven by strong demand from international defense and intelligence customers, showcasing the company's successful transition into government contracts.
- Impact of Net Loss: Despite the record revenue, Planet Labs posted a net loss of $138.9 million, primarily due to a non-cash revaluation loss of $106.5 million, which may affect investor confidence regarding the company's financial health.
- Equity Offering Triggers Sell-off: The announcement of a $1.5 billion at-the-market equity offering led to a 26% drop in stock price following the earnings report, as investor fears of dilution intensified, suggesting a potential 10% dilution risk given the company's market cap of $15 billion prior to the announcement.
- Growing Backlog: Planet Labs' backlog surged by 72% year-over-year to $906 million, indicating the company's potential in expanding its satellite constellation and securing additional defense contracts, although it remains pre-profit, making it suitable for long-term investors willing to navigate volatility.
See More
Planet Labs Stock Volatility and Growth Potential
- Stock Volatility: Planet Labs' stock surged 474% over the past year but dropped 40% following its June 4 earnings report, including a 26% one-day decline, indicating market concerns about its future profitability.
- Revenue Growth vs. Loss: The company reported record revenue of $94.2 million in Q1, a 42% year-over-year increase, yet posted a net loss of $138.9 million primarily due to a $106.5 million non-cash revaluation loss, highlighting financial fragility.
- Equity Offering Impact: The announcement of a $1.5 billion at-the-market equity offering raised investor fears of dilution, triggering a significant sell-off post-earnings, with market capitalization at $15 billion prior to the announcement, implying a potential 10% dilution risk.
- Future Growth Potential: Planet Labs aims to use the funds to expand its satellite constellation to secure additional defense contracts, with a staggering 72% year-over-year increase in backlog to $906 million, indicating strong potential for long-term technology investments and market demand.
See More
SpaceX IPO Triggers Plunge in Space Stocks
- Market Reaction: SpaceX's debut saw a 28% surge in stock price, achieving a valuation exceeding $2 trillion, yet the overall decline in space stocks indicates investors are locking in profits while maintaining confidence in the sector's potential.
- Price Volatility: Shares of Rocket Lab and Planet Labs fell approximately 8% each, Intuitive Machines dropped 11%, and Virgin Galactic plummeted 28%, reflecting concerns over the high valuations in the space industry.
- Investor Behavior: Analysts suggest that investors may be engaging in capital recycling to allocate funds for SpaceX, indicating that the market's enthusiasm for the space sector might face reality checks.
- Industry Outlook: Despite space stocks rising between 34% and 89% this year, analysts express concerns over their steep valuations, suggesting that such gains may not be sustainable, particularly following SpaceX's IPO.
See More
Impact of SpaceX IPO on Space Stocks Performance
- Space Stock Surge: As the SpaceX IPO approaches, Planet Labs' stock has surged 38% over the past four months, indicating strong market enthusiasm for the space sector, although its stock fell 9% today as investors shifted focus to SpaceX.
- Investor Behavior Analysis: Analysts suggest that SpaceX's IPO may lead investors to sell off other space stocks to raise cash for SpaceX shares, a behavior validated by Planet Labs' stock decline, reflecting the market's intense interest in SpaceX.
- Profitability Comparison: While SpaceX's IPO prospectus reveals it is not profitable, Planet Labs is generating positive free cash flow, making it a more attractive option for investors despite today's stock drop.
- Future Outlook: Although Planet Labs' stock fell today, its strong performance over the past four months suggests continued investor confidence in its growth potential, especially in the competitive landscape shaped by SpaceX.
See More
SpaceX IPO Triggers Market Volatility
- Market Reaction: On the day of SpaceX's IPO, Planet Labs' stock fell by 9%, indicating that investor focus on new listings may lead to sell-offs in related stocks, thus impacting overall market sentiment.
- Price Volatility: Over the past four months, Planet Labs' stock rose by 38%, but the sell-off on SpaceX's IPO day suggests that concerns over future profitability may intensify, affecting its market performance.
- Profitability Comparison: While Planet Labs is not profitable, it is generating positive free cash flow, showcasing a relative financial health advantage over SpaceX, which is currently losing money.
- Investment Advice: Analysts noted that Planet Labs did not make the current list of the top 10 recommended stocks, suggesting that its future growth potential may be limited, prompting investors to carefully assess its investment value.
See More
SpaceX IPO Sparks Interest in Related Companies
- Intuitive Machines Benefit: Analysts view Intuitive Machines as a beneficiary of SpaceX's IPO, with increasing demand for lunar infrastructure expected to drive a 44% price target increase, following a 69% rise in shares this year.
- Planet Labs Independent Growth: Planet Labs is seen as having no direct competition with SpaceX, although potential overlaps may arise; shares have risen 57%, with a price target of $53 indicating a potential 55% upside.
- Rocket Lab Market Opportunity: As the closest public competitor to SpaceX, Rocket Lab's shares have surged 50% in 2026, with a price target of $129 suggesting a 12% upside, benefiting from heightened market interest due to SpaceX's IPO.
- AST SpaceMobile Competitive Edge: AST SpaceMobile is identified as a direct competitor to Starlink, with analysts noting that Starlink's aggressive strategies could motivate carriers to support AST, leading to an 18% price increase forecast, following a 15% rise this year.
See More
Planet Labs Reports Record Revenue Amid $1.5 Billion Equity Offering
- Significant Revenue Growth: Planet Labs reported record revenue of $94.2 million in its latest earnings report, reflecting a 42% year-over-year increase driven by strong demand from international defense and intelligence customers, showcasing the company's successful transition into government contracts.
- Impact of Net Loss: Despite the record revenue, Planet Labs posted a net loss of $138.9 million, primarily due to a non-cash revaluation loss of $106.5 million, which may affect investor confidence regarding the company's financial health.
- Equity Offering Triggers Sell-off: The announcement of a $1.5 billion at-the-market equity offering led to a 26% drop in stock price following the earnings report, as investor fears of dilution intensified, suggesting a potential 10% dilution risk given the company's market cap of $15 billion prior to the announcement.
- Growing Backlog: Planet Labs' backlog surged by 72% year-over-year to $906 million, indicating the company's potential in expanding its satellite constellation and securing additional defense contracts, although it remains pre-profit, making it suitable for long-term investors willing to navigate volatility.
See More
Planet Labs Stock Volatility and Growth Potential
- Stock Volatility: Planet Labs' stock surged 474% over the past year but dropped 40% following its June 4 earnings report, including a 26% one-day decline, indicating market concerns about its future profitability.
- Revenue Growth vs. Loss: The company reported record revenue of $94.2 million in Q1, a 42% year-over-year increase, yet posted a net loss of $138.9 million primarily due to a $106.5 million non-cash revaluation loss, highlighting financial fragility.
- Equity Offering Impact: The announcement of a $1.5 billion at-the-market equity offering raised investor fears of dilution, triggering a significant sell-off post-earnings, with market capitalization at $15 billion prior to the announcement, implying a potential 10% dilution risk.
- Future Growth Potential: Planet Labs aims to use the funds to expand its satellite constellation to secure additional defense contracts, with a staggering 72% year-over-year increase in backlog to $906 million, indicating strong potential for long-term technology investments and market demand.
See More
SpaceX IPO Triggers Plunge in Space Stocks
- Market Reaction: SpaceX's debut saw a 28% surge in stock price, achieving a valuation exceeding $2 trillion, yet the overall decline in space stocks indicates investors are locking in profits while maintaining confidence in the sector's potential.
- Price Volatility: Shares of Rocket Lab and Planet Labs fell approximately 8% each, Intuitive Machines dropped 11%, and Virgin Galactic plummeted 28%, reflecting concerns over the high valuations in the space industry.
- Investor Behavior: Analysts suggest that investors may be engaging in capital recycling to allocate funds for SpaceX, indicating that the market's enthusiasm for the space sector might face reality checks.
- Industry Outlook: Despite space stocks rising between 34% and 89% this year, analysts express concerns over their steep valuations, suggesting that such gains may not be sustainable, particularly following SpaceX's IPO.
See More
Impact of SpaceX IPO on Space Stocks Performance
- Space Stock Surge: As the SpaceX IPO approaches, Planet Labs' stock has surged 38% over the past four months, indicating strong market enthusiasm for the space sector, although its stock fell 9% today as investors shifted focus to SpaceX.
- Investor Behavior Analysis: Analysts suggest that SpaceX's IPO may lead investors to sell off other space stocks to raise cash for SpaceX shares, a behavior validated by Planet Labs' stock decline, reflecting the market's intense interest in SpaceX.
- Profitability Comparison: While SpaceX's IPO prospectus reveals it is not profitable, Planet Labs is generating positive free cash flow, making it a more attractive option for investors despite today's stock drop.
- Future Outlook: Although Planet Labs' stock fell today, its strong performance over the past four months suggests continued investor confidence in its growth potential, especially in the competitive landscape shaped by SpaceX.
See More
SpaceX IPO Triggers Market Volatility
- Market Reaction: On the day of SpaceX's IPO, Planet Labs' stock fell by 9%, indicating that investor focus on new listings may lead to sell-offs in related stocks, thus impacting overall market sentiment.
- Price Volatility: Over the past four months, Planet Labs' stock rose by 38%, but the sell-off on SpaceX's IPO day suggests that concerns over future profitability may intensify, affecting its market performance.
- Profitability Comparison: While Planet Labs is not profitable, it is generating positive free cash flow, showcasing a relative financial health advantage over SpaceX, which is currently losing money.
- Investment Advice: Analysts noted that Planet Labs did not make the current list of the top 10 recommended stocks, suggesting that its future growth potential may be limited, prompting investors to carefully assess its investment value.
See More
SpaceX IPO Sparks Interest in Related Companies
- Intuitive Machines Benefit: Analysts view Intuitive Machines as a beneficiary of SpaceX's IPO, with increasing demand for lunar infrastructure expected to drive a 44% price target increase, following a 69% rise in shares this year.
- Planet Labs Independent Growth: Planet Labs is seen as having no direct competition with SpaceX, although potential overlaps may arise; shares have risen 57%, with a price target of $53 indicating a potential 55% upside.
- Rocket Lab Market Opportunity: As the closest public competitor to SpaceX, Rocket Lab's shares have surged 50% in 2026, with a price target of $129 suggesting a 12% upside, benefiting from heightened market interest due to SpaceX's IPO.
- AST SpaceMobile Competitive Edge: AST SpaceMobile is identified as a direct competitor to Starlink, with analysts noting that Starlink's aggressive strategies could motivate carriers to support AST, leading to an 18% price increase forecast, following a 15% rise this year.
See More
