Key Highlights

Planet Labs posted second-quarter revenue of $116.1 million, well ahead of Wall Street's $104.5 million forecast and representing 58% year-over-year growth.

Adjusted EBITDA came in at $13.9 million, far exceeding the consensus expectation of $2.3 million.

Defense and intelligence customers now account for 70% of total revenue, up from 57% a year earlier, with the segment nearly doubling to $81 million.

The company's third-quarter revenue guidance of $101 million to $105 million fell short of analyst expectations of $114 million.

PL shares rose roughly 11% in premarket trading Friday, reaching $20.44, after falling more than 8% on Thursday ahead of the earnings report.

Planet Labs announced second-quarter revenue of $116.1 million, marking 58% year-over-year growth and easily beating Wall Street's projection of $104.5 million. The company's adjusted EBITDA of $13.9 million significantly outperformed expectations of $2.3 million.

PLANET LABS $PL Q2'27 EARNINGS HIGHLIGHTS

Revenue: $116.1M (Est. $104M); +58% YoY
Adj. EPS: $0.02 (Est. -$0.02)
Adj. EBITDA: $13.9M (Est. $1.6M); +117% YoY
Non-GAAP Gross Margin: 59%; -200 bps YoY
FY27 Guide: Revenue: $430M-$441M (Est. $436M)

— Wall St Engine (@wallstengine) September 3, 2026 pic.twitter.com/KwkrE7KylZ Source post

On a non-GAAP basis, earnings per share reached 2 cents, compared to the consensus forecast of a 2-cent loss — a comprehensive earnings beat across all major metrics.

The defense and intelligence division grew more than 90% year over year, expanding to 70% of total company revenue from 57% in the same period last year. The segment generated approximately $81 million, nearly double the prior-year figure. The shift reflects a broader industry trend: European governments in particular have been expanding spending on space-based intelligence and sovereign satellite capabilities since Russia's full-scale invasion of Ukraine in 2022, and commercial imagery providers like Planet, alongside peers such as BlackSky and Maxar, have positioned themselves as key beneficiaries of that demand.

The commercial segment posted growth exceeding 15%, while civil government revenue expanded by more than 5%. Geographically, the Europe, Middle East and Africa region delivered the strongest performance, with revenue surging over 130%.

The satellite imagery company also secured an $8 million agreement with the National Geospatial-Intelligence Agency for its Global Monitoring Service. Additional wins include a seven-figure European defense contract and a German government satellite-services tender valued at up to 25 million euros over five years.

The company's backlog grew 11% year over year to $815 million. Remaining performance obligations increased 9% to approximately $753 million. Management expects to recognize over $400 million in revenue over the next four quarters from existing backlog alone.

Third-Quarter Forecast Falls Short

Management guided third-quarter revenue to a range of $101 million to $105 million, below the $114 million analyst consensus. The company also anticipates a Q3 EBITDA loss of approximately $3.5 million, versus Wall Street's projection of positive $2.5 million EBITDA.

Citi analyst John Godyn indicated that part of the Q2 outperformance came from revenue pulled forward from the third quarter, explaining some of the guidance miss. He maintained that the investment case remains "intact."

Needham analyst Ryan Koontz noted that Q2 revenue benefited from accelerated recognition tied to Sweden's inaugural sovereign satellite. Combining actual Q2 and projected Q3 revenue, year-over-year growth still stands at 42%. The Sweden program is part of a wider pattern of European nations investing in nationally controlled space assets rather than relying solely on allied or commercial imagery from U.S. providers.

Annual Outlook Updated

Planet Labs raised the lower bound of its fiscal 2027 revenue guidance to $430 million from $425 million, while keeping the upper end at $441 million. Current analyst consensus stands at $435.67 million.

Management is targeting the Rule of 40 benchmark in fiscal 2027, measured by combining revenue growth percentage and adjusted EBITDA margin — a threshold widely used by software and recurring-revenue businesses to signal a balance between growth and profitability.

Adjusted gross margin slipped modestly to 59% from 61% a year earlier, attributed to investments in satellite-services agreements and AI-powered partner solutions.

Through the first half of the fiscal year, the company generated approximately $68 million in operating cash flow. Free cash flow amounted to $21 million, while adjusted free cash flow totaled $29 million.

Planet Labs ended the quarter with approximately $865 million in cash and short-term investments, and raised around $120 million through its at-the-market equity offering at an average net price of $31.95 per share.

Management has identified satellite-services opportunities exceeding $4 billion in its pipeline — an indicator that will be worth watching in coming quarters as the company converts those prospects into contracted backlog, particularly given that its stated satellite-services deals (such as Sweden's) can shift revenue timing between quarters.

PL stock traded down approximately 1.25% at $18.12 at the time of publication Friday, following its premarket surge of more than 11%. The stock has gained over 180% over the past 12 months.