Planet Labs PBC ($PL) Stock: Surges 47%+ on Q2 Earnings Beat, Raised Outlook, and Record Backlog

TLDR

• Q2 revenue rose 20% YoY to $73.4M, beating analyst estimates.
• Adjusted EBITDA reached $6.4M, third straight quarter of profitability.
• Backlog jumped 245% YoY to $736.1M, boosting revenue visibility.
• Full-year 2026 revenue outlook raised to $281M–$289M.
• Stock surged nearly 48% on earnings release, before slipping 11% pre-market.

Planet Labs PBC (NYSE: PL) closed at $9.66 on September 8, 2025, up 47.9% after announcing Q2 2026 results, before slipping 11.8% in pre-market trading to $8.53.

Planet Labs PBC (PL)

The satellite imaging company reported record revenue and backlog, while also raising its full-year revenue forecast.

Strong Quarterly Performance

Planet Labs delivered Q2 revenue of $73.4 million, representing 20% year-over-year growth and beating Wall Street expectations of $65.7 million. Non-GAAP gross margin expanded to 61% from 58% last year, while GAAP gross margin reached 58%. Adjusted EBITDA was positive at $6.4 million, marking the third consecutive quarter of profitability. Free cash flow totaled $54.3 million year-to-date, with a margin near 39%.

Expanding Backlog and Key Contracts

The company’s backlog soared to $736.1 million, up 245% year-over-year, with remaining performance obligations rising 516% to $690.1 million. CEO Will Marshall highlighted new multi-year contracts with the German government, NATO, and the U.S. Department of Defense as major drivers of growth. Other clients included the U.K.’s Rural Payments Agency, SwissRe, and Farmdar.

Planet also launched two high-resolution Pelican satellites with SpaceX and celebrated the one-year milestone of its Tanager-1 satellite, which detected over 5,500 methane and CO2 plumes.

Sector Performance

Revenue from defense and intelligence customers grew 41% year-over-year, reflecting strong global demand for Earth intelligence services. Commercial revenue rose 6%, while civil government revenue declined 4% due to the expiration of a Norwegian partnership. North American revenue was flat, impacted by the timing of U.S. government pilot contracts. The company ended the quarter with 908 customers, down from the prior year as it shifted focus toward larger strategic clients.

Financial Position

Planet ended the quarter with $271.5 million in cash, equivalents, and short-term investments, up $45.4 million sequentially. Capital expenditures totaled $21.5 million in Q2, largely tied to satellite launches and procurement. Management expects some variability in margins depending on contract mix, particularly satellite services.

Upgraded Outlook for FY 2026

For Q3, Planet guided revenue between $71 million and $74 million, topping consensus estimates. Non-GAAP gross margin is projected at 55% to 56%, with adjusted EBITDA expected between breakeven and a $4 million loss. For fiscal 2026, the company raised its revenue forecast to $281 million–$289 million, up from $265 million–$280 million, though still below some analyst expectations. CFO Ashley Johnson emphasized that the growing backlog provides strong visibility into fiscal 2027 and beyond.

Performance Overview

As of September 8, 2025, Planet Labs’ YTD return stood at 139.1%, with a one-year gain of 442.7%. The stock has significantly outpaced the S&P 500’s 20.1% return over the same period, reflecting investor optimism about its long-term growth trajectory.

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