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Today's Featured Article Planet Labs: The Satellite Stock That Keeps Shooting to the MoonAuthor: Leo Miller. Originally Published: 3/22/2026. 
Key Points - Planet Labs shares delivered one of the most impressive performances of 2025, rising nearly 400%.
- The company's latest earnings report added more fuel to the fire as sales, earnings, and guidance came in well above expectations.
- Planet Labs is generating impressive results, and management believes AI could unlock even more growth.
- Special Report: Elon's "Hidden" Company
Investors just can't seem to get enough of satellite and geo-spatial imaging stock Planet Labs PBC (NYSE: PL). In 2025, the name delivered an astonishing return of 388% as the firm's revenue growth accelerated sharply. That momentum has continued into 2026, with shares up more than 30% around mid-March. The stock rose almost 9% during the regular session on March 19 before its earnings release, and then jumped further—gaining more than 25%—after the company reported results. The AI bottleneck has shifted from chips to power. Goldman Sachs projects demand growing 15% per year, with 40% of AI facilities constrained by electricity shortages by 2027. One company holds $1.5 billion in backlog orders for the exact equipment these data centers need - yet Wall Street still prices it like a sleepy industrial stock. The June SpaceX IPO could change that fast. See the math Wall Street is missing before the SpaceX IPO Given the meteoric rise in this industrial stock, is there still upside? Examining the company's business model and recent financial performance can help investors answer that question. Planet Labs: Improving Decision Making with Earth Imaging Despite sounding complex at first, Planet Labs' business is straightforward. The company operates the world's largest fleet of earth-imaging satellites, which capture daily images of the Earth's surface. Planet Labs sells those images and the accompanying analytics software to customers, generating recurring subscription revenue. Planet Labs provides value by helping customers detect changes on the planet's surface and make better decisions as a result. In its fiscal year 2026 (FY2026), 59% of revenue came from Defense and Intelligence customers. (Note: Planet Labs' fiscal reporting period is several quarters ahead of the calendar year.) Planet Labs' imaging allows government customers to monitor what adversaries are doing, but its customer base also includes civil government and commercial clients. In FY2026, 23% of revenue came from civil government customers and 18% came from commercial customers. Commercial buyers span industries such as agriculture, insurance, energy, forestry, and finance. For example, commodity traders can use Planet Labs imagery to assess crop progress. Poor harvests reduce supply and put upward pressure on prices, so early insight from satellite imagery can provide a trading advantage. Launching and operating satellites is capital intensive, so Planet Labs needs to scale its customer base to achieve attractive margins. That is why its "one-to-many" model is central to the strategy: basic customers can access a broad set of images, which offers more scalable economics than legacy providers that sell each image to a single buyer. Higher-priced tiers give customers higher-resolution imagery for specific regions, and premium tiers allow customers to reserve exclusive captures when satellites pass over areas of interest. Planet Labs Posts Big Beats, Crushes Guidance Expectations In its latest quarter, Planet Labs reported revenue of $86.8 million, up 41% year over year (YOY). That significantly beat estimates near $78.2 million, which implied 27% growth. The company also reported adjusted earnings per share (EPS) of $0.00, an improvement from a $0.02 loss a year earlier and better than the $0.04 loss analysts expected. For FY2027, Planet Labs is guiding to midpoint revenue of $427.5 million, implying roughly 39% growth—an acceleration versus FY2026's full-year growth rate of 26%. This guidance substantially beat consensus forecasts of about $380 million. Notably, for the first time the company delivered positive adjusted EBITDA and free cash flow (FCF) for the full year. Adjusted EBITDA was $15.5 million, and FCF was $52.9 million. Looking ahead to FY2027, Planet Labs expects adjusted EBITDA to decline, with guidance of $0 million to $10 million. The company still expects positive FCF but did not provide detailed guidance for that metric. Management is prioritizing growth over near-term profitability. The company's $900 million backlog—up 77% YOY—is nearly three times the $307.7 million in revenue it generated in FY2026. Serving that backlog requires investment; for example, Planet Labs plans to double its satellite manufacturing capacity in FY2027. Moreover, the company expects to deliver only about 37% of its backlog over the next 12 months, underscoring the multi-year nature of the business and making short-term declines in profitability less concerning. PL Eyes AI-Driven Demand Unlock in Civil and Commercial Markets Following Planet Labs' recent run-up, the company's market capitalization exceeds $10 billion, implying a very rich forward price-to-sales ratio in the mid-20s. The market clearly expects substantial growth, and the valuation reflects those high expectations. That level of growth is not impossible, but it is hard to predict with certainty. Management believes advancements in AI will unlock additional demand in civil and commercial markets in FY2027. Those markets were flat or down in FY2026, with Defense and Intelligence driving the recent growth, but the company contends civil and commercial segments could ultimately be larger. Ultimately, investors may not be able to justify Planet Labs' current valuation based solely on its present financials. Investing in the stock requires some conviction in the company's long-term story and the value of its product offering. | 
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