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    Planet Labs (PL) Is Down 9.3% After Raising 2027 Guidance And Tilting Further Toward Defense

    Simply Wall St·09/06/2026 05:18:31
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    • Planet Labs PBC reported past second-quarter 2026 results with revenue of US$116.05 million, a lower net loss of US$9.35 million, and raised full-year fiscal 2027 revenue guidance to US$430–441 million.
    • The company’s recent gains in defense and intelligence contracts, along with the upcoming Tanager-2 and SuperDove launches, highlight an increasing emphasis on higher-value government and hyperspectral imaging opportunities.
    • Now we’ll examine how the stronger defense-and-intelligence revenue mix could shape Planet Labs’ existing investment narrative and risk profile.

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    Planet Labs PBC Investment Narrative Recap

    To own Planet Labs today, you need to believe its shift toward higher-value defense and intelligence work, plus differentiated satellite constellations like Tanager and Owl, can eventually support a more durable, solution-led business despite persistent losses and dilution. The latest results, with stronger defense revenue and higher full-year guidance, reinforce that near term catalyst but also sharpen the biggest risk: heavier reliance on a concentrated set of large government contracts and capital-intensive satellite investments.

    Among the recent announcements, the new 7-figure, 1-year deal with a European defense and intelligence customer feels most relevant. It fits the growing defense mix that drove Q2’s 58% revenue increase and roughly 70% of sales from that segment, and it underlines how near term momentum is coming from larger, complex government contracts that can both accelerate Planet’s shift to bundled “solutions” and heighten exposure to budget and renewal risk.

    Yet behind the contract wins and guidance raise, investors should still be aware that growing dependence on a handful of large government customers could...

    Read the full narrative on Planet Labs PBC (it's free!)

    Planet Labs PBC's narrative projects $767.2 million revenue and $52.6 million earnings by 2029. This requires 31.7% yearly revenue growth and a $425.7 million earnings increase from -$373.1 million today.

    Uncover how Planet Labs PBC's forecasts yield a $38.73 fair value, a 114% upside to its current price.

    Exploring Other Perspectives

    PL 1-Year Stock Price Chart
    PL 1-Year Stock Price Chart

    Some of the lowest analysts were already cautious, assuming about US$773.2 million of revenue by 2029 and ongoing losses, and the latest defense driven quarter could either ease their concerns about profitability pressures and revenue concentration risk or reinforce the view that Planet’s growth is coming with higher contract and budget exposure.

    Explore 9 other fair value estimates on Planet Labs PBC - why the stock might be worth over 2x more than the current price!

    Decide For Yourself

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.