Planet Labs PBC - Class A
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.74%.
Did PL Beat Earnings? Q2 2026 Results
Planet Labs delivered a strong fiscal second quarter, posting record revenue of $73.39 million, up 20.1% year over year, while narrowing its non-GAAP loss per share to $0.03 against a consensus estimate of $0.04, a beat of 33.04%. Revenue also cleared Wall Street expectations by 11.30%, as surging demand from defense and government customers drove the outperformance. The single most material catalyst behind the numbers was a dramatic expansion in contracted revenue visibility, with remaining performance obligations surging 516% year over year to $690.07 million and backlog jumping 245% to $736.08 million, reflecting transformative agreements including a €240 million multi-year German government satellite services contract set to begin generating revenue in January 2026. The company also recently closed a $460 million convertible note offering, bolstering a balance sheet that ended the quarter with roughly $271.50 million in cash and investments. Looking ahead, Planet guided full-year fiscal 2026 revenue to $281 million to $289 million, with adjusted EBITDA ranging from a $7 million loss to breakeven.
- 20% year-over-year revenue growth driven by defense and government contracts
- Backlog increased 245% YoY to $736.1 million providing strong forward visibility
- Remaining performance obligations surged 516% YoY to $690.1 million
- 98% recurring annual contract value
- Gross margin expansion to 58% GAAP (61% non-GAAP) from 53% (58% non-GAAP) year-over-year
- Third consecutive quarter of adjusted EBITDA profitability at $6.4 million
- Strong cash generation with Q2 operating cash flow of $67.8 million and free cash flow of $46.3 million
“Our second quarter results demonstrate incredibly strong momentum across our business, with record revenue and substantial growth in our backlog. The increased demand for our unique Earth intelligence, highlighted by pivotal contracts including one in collaboration with the German government, one with NATO, and others with the U.S. Department of Defense, underscores the critical role Planet plays in addressing global challenges and supporting peace and security.”
Planet Labs CEO, on the earnings call
Forward Guidance & Outlook
For Q3 FY2026 (ending October 31, 2025), Planet expects revenue of approximately $71 million to $74 million, non-GAAP gross margin of approximately 55% to 56%, adjusted EBITDA loss of approximately ($4) million to $0, and capital expenditures of approximately $18 million to $24 million. For full fiscal year 2026, Planet expects revenue of approximately $281 million to $289 million, non-GAAP gross margin of approximately 55% to 57%, adjusted EBITDA loss of approximately ($7) million to $0, and capital expenditures of approximately $65 million to $75 million. The company noted that its significant backlog provides good visibility into FY27 and beyond, with approximately 35% of backlog expected to be recognized within the next 12 months. Revenue from the €240 million German-funded satellite services contract is expected to begin in January 2026 and ramp over several years.
PL YoY Financials
Figures from SEC filings and company reports. Not investment advice.