Planet Labs (PL) Delivers Record Q2 with +58% Revenue Growth and First Positive Non-GAAP EPS
Key Takeaways
- Planet Labs PBC reported record revenue of $116.1 million for the second quarter of fiscal 2027, up 58% year over year and above the roughly $104.5 million consensus estimate.
- Non-GAAP (non-Generally Accepted Accounting Principles) earnings per share (EPS) came in at $0.02, beating expectations of a $0.02 loss.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached a profit of $13.9 million, well ahead of forecasts near $2 million.
- Defense & Intelligence revenue surged more than 90% year over year, driving much of the quarter's outperformance.
- Management raised full-year fiscal 2027 revenue guidance to $430 million–$441 million but guided third-quarter revenue below consensus, implying a sequential decline.
Earnings Context and Why It Matters
Planet Labs PBC operates one of the world's largest fleets of Earth-imaging satellites, selling daily imagery, data, and geospatial analytics to commercial, civil government, and defense customers. Its fiscal 2027 second quarter, ended July 31, 2026, is significant because it marks the company's fourth consecutive quarter exceeding the "Rule of 40" — a software-industry benchmark that combines revenue growth rate with adjusted EBITDA margin. The results also show how rapidly the business mix is shifting toward defense and intelligence contracts, which accounted for roughly 70% of quarterly sales. For investors, the report offers a clear signal on demand momentum, profitability progress, and whether near-term guidance can support a valuation that has drawn scrutiny in recent months. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Planet Labs PBC reported revenue of $116.1 million, up 58% from $73.4 million in the prior-year period and above the consensus estimate of approximately $104.5 million. Non-GAAP EPS was $0.02, compared with a consensus forecast of a $0.02 loss and a $0.03 loss in the same quarter a year ago. Non-GAAP gross margin was 59%, down from 61% a year earlier but above expectations, reflecting the scalability of the subscription model alongside increased investment in satellite services and AI-enabled solutions.
Adjusted EBITDA was a profit of $13.9 million, a sharp improvement over the roughly $2 million analysts had expected. Defense & Intelligence revenue grew more than 90% year over year, while commercial-sector revenue rose more than 15% and civil government revenue increased over 5%. Point-in-time revenue — recognized upon delivery milestones — represented 12% of quarterly revenue versus 1% a year ago, a source of potential quarter-to-quarter variability. The company ended the quarter with approximately $865 million in cash, cash equivalents, and short-term investments, and backlog of roughly $815 million, up about 11% year over year.
For the third quarter of fiscal 2027, Planet Labs PBC guided revenue of $101 million–$105 million, below consensus near $114 million, with adjusted EBITDA expected to be a loss of $1 million–$6 million. Full-year fiscal 2027 guidance was raised to $430 million–$441 million in revenue, non-GAAP gross margin of 55%–57%, and adjusted EBITDA of $3 million–$10 million, while capital expenditure guidance was increased to $100 million–$115 million.
Market Reaction and Investor Sentiment
Shares of Planet Labs PBC fell about 8% during regular trading on September 3, 2026, closing at $18.35, as investors initially focused on the softer third-quarter revenue guidance and the expected return to an adjusted EBITDA loss. The stock then rebounded in extended trading, rising roughly 4% in after-hours activity, and moved sharply higher in pre-market trading the following day as the market digested the magnitude of the quarterly beat, the profitability milestone, and the raised full-year outlook. The mixed reaction underscores a key tension: strong current demand and profitability progress versus near-term guidance that suggests a step down tied to the timing of point-in-time revenue recognition. Broader investor enthusiasm for space and defense-related themes has also contributed to elevated volatility in the stock.
Forward Outlook and Key Factors to Monitor
Investors will be watching several themes in the quarters ahead. First, the timing of satellite-services revenue recognition remains a swing factor. Management attributed the expected third-quarter decline to the timing of point-in-time revenue, including a Swedish satellite handover that boosted the second quarter. Because this revenue can shift between periods, quarterly results may remain uneven even as annual growth stays strong.
Second, defense and intelligence demand is central to the growth story. Planet Labs PBC cited an $8 million contract with the National Geospatial-Intelligence Agency and a German tender award worth up to €25 million, and it identified more than $4 billion in satellite-services opportunities. The pace at which this pipeline converts to signed contracts will be a key driver. From what I see, this pipeline conversion pace deserves close attention.
Finally, rising capital expenditures deserve attention. The company raised its full-year capital expenditure guidance to $100 million–$115 million to support its next-generation Pelican and Owl satellite programs and expanded manufacturing. While the balance sheet remains strong, higher spending could pressure near-term free cash flow. Balancing margin expansion, elevated investment, and revenue variability will shape how investors evaluate execution in the second half of fiscal 2027.
Exploring Tickeron’s AI Tools for Portfolio Insights
In my analysis of names like Planet Labs PBC, I often turn to Tickeron’s suite of AI tools to cross-check patterns and signals across the sector. The AI Screener has been particularly useful for filtering opportunities based on fundamentals and technical trends without spending hours on manual work. These resources help me stay objective when weighing growth stories against valuation concerns.
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Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
PL's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for PL turned positive on September 21, 2026. Looking at past instances where PL's MACD turned positive, the stock continued to rise in 40 of 48 cases over the following month. The odds of a continued upward trend are 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PL's RSI Oscillator exited the oversold zone, 19 of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 73%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 52 of 65 cases where PL's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 80%.
The Momentum Indicator moved above the 0 level on October 02, 2026. You may want to consider a long position or call options on PL as a result. In 67 of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 78%.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 83%.
The Aroon Indicator for PL entered a downward trend on September 25, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 42 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.811) is normal, around the industry mean (6.305). P/E Ratio (0.000) is within average values for comparable stocks, (58.116). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.564). Dividend Yield (0.000) settles around the average of (0.009) among similar stocks. P/S Ratio (14.104) is also within normal values, averaging (18.330).
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating fairly steady price growth. PL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 85 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock worse than average.
The Tickeron SMR rating for this company is 98 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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