Key Points
Demand for Planet Labs' offerings is rising.
With a fast-growing backlog of over $900 million, much more gains lie ahead.
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Shares of Planet Labs (NYSE: PL) soared on Friday after the satellite imagery supplier reported strong revenue growth and significant progress toward achieving sustained profitability.
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Space-based gains
Planet's revenue surged 41% year over year to $86.8 million in its fiscal 2026 fourth quarter, which ended on Jan. 31.
The provider of geospatial solutions launched 40 satellites over the past year. It also struck deals with the likes of the U.S. Department of Defense, NATO, and the Swedish Armed Forces to deliver space-based data, artificial intelligence (AI)-powered analytics, and threat monitoring services.
All told, Planet broke even on an adjusted basis. That was much better than Wall Street expected. Analysts predicted a loss of $0.05 per share.
Better still, the San Francisco-based space stock produced $53 million in free cash flow in fiscal 2026. Planet ended its fiscal year with $640 million in cash and investments.
A long runway for growth
Planet sees its revenue growing to between $415 million and $440 million in fiscal 2027, up from $307.7 million in 2026. Management also projects earnings before interest, taxes, depreciation, and amortization (EBITDA) of up to $10 million.
Planet's backlog, which grew by 79% to more than $900 million, portends even larger gains.
"With this excellent backlog as well as our healthy pipeline, we project strong growth for this year and beyond," CEO Will Marshall said.
With conflict in the Middle East and Ukraine once again demonstrating the vital need for situational awareness, and a growing number of industries recognizing the value of space-based data solutions, demand for Planet's offerings is likely to soar in the coming years.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Planet Labs PBC. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
