Planet Labs Signs Seven-Figure European Defense Contract, Extending a String of 2026 Government Deals
Key Takeaways
- •Planet Labs signed a seven-figure, one-year contract with a European defense and intelligence customer covering Planet Mosaics access and professional services.
- •The company's latest quarterly revenue reached $94.15 million, rising 42.1% year over year and exceeding the $90.39 million consensus estimate.
- •Planet has announced multiple 2026 government contracts, including deals with the NGA, the Swedish Armed Forces, and the Defense Innovation Unit.
- •Wall Street's consensus rating remains 'Hold' with an average price target of $35.36, ranging from a $36 Buy to a $28 Sell.
- •Planet executives sold 171,122 shares worth roughly $4.15 million last quarter, and the stock trades below both its 50-day and 200-day moving averages.
Planet Labs (NYSE: PL) has secured a new seven-figure, one-year contract with a European defense and intelligence customer, the company announced Thursday.
The agreement provides the customer with access to Planet Mosaics along with dedicated professional services support for operational planning across land and maritime areas of interest. Planet Mosaics are basemap products built from the company's daily satellite imagery, offering near-daily, analysis-ready views of Earth's land surfaces — a format designed for monitoring change over time rather than one-off imaging tasking.
Jon Powers, VP of Global Defense and Intelligence at Planet, said the agreement reflects growing demand for geospatial data and support services in these domains. The deal also comes as European governments have been increasing defense budgets, with NATO members committing to higher defense spending targets — a trend that has expanded the pool of government customers for commercial satellite data providers.
Shares of Planet Labs were trading down roughly 2.60% on the day.
The latest deal continues a busy stretch of contract announcements for the company in 2026. Planet has previously disclosed agreements with the National Geospatial-Intelligence Agency (NGA), the Swedish Armed Forces, and the Defense Innovation Unit.
Revenue Growth Backs the Story
On the financial side, Planet reported quarterly revenue of $94.15 million in its most recent report, up 42.1% year over year and ahead of the $90.39 million consensus estimate.
The company posted a loss of $0.03 per share, which was better than the expected loss of $0.04.
Analysts, on average, expect Planet to record full-year earnings per share of -$0.92.
Institutional ownership stands at 41.71%, with Vanguard among the larger holders, owning more than 19.3 million shares valued at approximately $381.7 million.
Analyst Ratings Remain Cautious
Despite the contract wins and revenue growth, Wall Street has not moved to upgrade the stock. The consensus rating sits at "Hold" with an average price target of $35.36.
Ratings range from Deutsche Bank's "Buy" with a $36 target to New Street Research's "Sell" with a $28 target. Goldman Sachs recently raised its target from $22 to $25 while maintaining a "neutral" stance.
On the insider side, Planet executives sold 171,122 shares worth roughly $4.15 million last quarter. Robert H. Schingler sold 64,593 shares at $25.92 in July, while director John W. Raymond sold 6,494 shares at $26.16.
The stock has traded in a 52-week range of $6.26 to $51.76, and currently sits below its 50-day moving average of $24.31 and its 200-day moving average of $30.17. Whether the string of government contracts translates into sustained revenue growth will be visible in the company's upcoming quarterly reports and any updates to its backlog and revenue guidance.
