Analysts Raise Planet Labs Predictions After Impressive Q2

Planet Labs Delivers Strong Q2 Performance

Planet Labs PBC (NYSE: PL) recently reported impressive results for the second quarter of fiscal 2026, surpassing analyst expectations with its revenue and growth strategy.

Impressive Revenue Growth

The company's revenue climbed by an impressive 20% year-over-year, reaching $73.39 million, significantly exceeding analysts' estimates of $65.74 million. Despite experiencing a GAAP net loss of $22.6 million, or 7 cents per share, this was an improvement compared to a loss of $38.7 million, or 13 cents per share, recorded in the previous year.

Non-GAAP Adjustments Show Positive Trend

On a non-GAAP basis, Planet Labs reported a loss of just 3 cents per share, which was better than the anticipated loss of 4 cents. The adjusted EBITDA also showed improvement, standing at $6.4 million compared to a loss of $4.4 million during the same quarter last year.

CEO Will Marshall's Insights

CEO Will Marshall was optimistic during the earnings call, stating, "Our second quarter results demonstrate incredibly strong momentum across our business, with record revenue and substantial growth in our backlog. The increasing demand for our unique Earth intelligence, especially through significant contracts with the German government, NATO, and the U.S. Department of Defense, showcases Planet's crucial role in tackling global challenges and fostering security."

Future Guidance

Looking ahead, Planet Labs has provided a revenue forecast for the third quarter, estimating between $71 million and $74 million. This is above the consensus of $68.86 million from analysts. The company anticipates a non-GAAP gross margin of 55% to 56%, with adjusted EBITDA expected to be between a $4 million loss and breakeven.

Annual Revenue Outlook Adjusted

For fiscal year 2026, Planet Labs has revised its revenue outlook, now projecting between $281 million and $289 million, up from earlier guidance of $265 million to $280 million. However, this new estimate falls short of the $328.38 million that analysts had previously predicted. The company maintains its expectations of a non-GAAP gross margin of 55% to 57% and an adjusted EBITDA ranging between a $7 million loss and breakeven.

Stock Performance

Following the announcement of these results, Planet Labs’ share price fell by 3.6%, trading at $9.31. This fluctuation highlights the market's reaction to the company's earnings performance and future outlook.

Analyst Reactions and Price Target Adjustments

In response to the Q2 announcement, several analysts have revised their price targets for Planet Labs. Needham analyst Ryan Koontz has maintained a Buy rating on shares, up from $8 to a new target of $12. Similarly, JMP Securities analyst Trevor Walsh has upheld a Market Outperform rating, increasing the price target from $8 to $11. These adjustments reflect the analysts' confidence in Planet's business performance moving forward.

Considering PL Stock?

If you're contemplating an investment in PL stock, current analyst insights show a generally positive outlook based on the recent performance and growth indicators from Planet Labs.

Frequently Asked Questions

What were the key highlights of Planet Labs' Q2 report?

Planet Labs reported a 20% revenue growth, reaching $73.39 million, and improved GAAP net loss results compared to the previous year.

How did analysts respond to the earnings announcement?

Analysts reacted positively, raising price targets for the stock, reflecting their confidence in the company's future growth.

What does Planet Labs' guidance indicate for Q3?

The company expects revenue to be between $71 million and $74 million, surpassing analyst consensus expectations.

What is the outlook for Planet Labs in fiscal year 2026?

Planet Labs revised its revenue outlook upward, now projecting between $281 million and $289 million, though still below analyst expectations.

What strategic partnerships has Planet Labs established?

Planet has secured significant contracts with the German government, NATO, and the U.S. Department of Defense to bolster its Earth intelligence services.

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