Planet Labs PBC (NYSE:PL) Shares Gap Up on Earnings Beat

Key Points

• Planet Labs beat quarterly expectations: Fiscal Q2 revenue rose 58% year over year to $116.1 million, exceeding the $104.5 million consensus, while adjusted EPS was $0.02 versus expectations for a $0.02 loss.
• Shares initially gapped higher after the earnings report, opening at $19.64 compared with the prior close of $18.35, but the company’s stock remains volatile and unprofitable.
• Near-term guidance tempered the outlook: Fiscal Q3 revenue guidance of $101 million–$105 million fell below the $114.3 million analyst consensus, despite new defense-sector demand and generally favorable analyst ratings.

Shares of Planet Labs PBC (NYSE:PL - Get Free Report) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $18.35, but opened at $19.64. Planet Labs PBC shares last traded at $18.1990, with a volume of 7,578,959 shares.

The company reported $0.02 EPS for the quarter, topping analysts' consensus estimates of ($0.02) by $0.04. Planet Labs PBC had a negative return on equity of 105.29% and a negative net margin of 111.17%.The company had revenue of $116.05 million for the quarter, compared to analysts' expectations of $104.53 million. During the same quarter in the previous year, the firm posted ($0.07) earnings per share. The firm's quarterly revenue was up 58.2% on a year-over-year basis.

Planet Labs PBC News Summary

Here are the key news stories impacting Planet Labs PBC this week:

• Positive Sentiment: Planet reported fiscal Q2 2027 revenue of $116.1 million, up 58% year over year and well above the $104.5 million consensus estimate. Adjusted EPS was $0.02, beating expectations for a $0.02 loss. Planet Reports Financial Results for Second Quarter of Fiscal Year 2027
• Positive Sentiment: The company signed a seven-figure agreement with a European defense and intelligence customer, reinforcing demand for its satellite imagery and analytics in government and defense markets. Planet Signs 7-Figure Agreement with European Defense and Intelligence Customer
• Positive Sentiment: Berenberg upgraded Planet to “strong buy,” while Needham maintained a “buy” rating and set a $40 price target, despite reducing its target from $53. These calls imply substantial potential upside from current levels.
• Neutral Sentiment: New Street Research upgraded PL from “sell” to “neutral,” signaling reduced bearishness but not a bullish recommendation.
• Negative Sentiment: Planet guided for fiscal Q3 revenue of $101 million to $105 million, below the $114.3 million analyst consensus. This near-term outlook appears to be the primary reason the stock has decreased following the earnings release.
• Negative Sentiment: Fiscal-year revenue guidance of $430 million to $441 million is broadly around consensus, but the company remains unprofitable, with a negative net margin and negative return on equity. That increases sensitivity to any slowdown in growth.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on PL. The Goldman Sachs Group boosted their target price on shares of Planet Labs PBC from $22.00 to $25.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 14th. Northland Securities set a $50.00 price objective on shares of Planet Labs PBC in a research report on Friday, June 5th. Berenberg Bank started coverage on Planet Labs PBC in a research report on Wednesday. They set a "buy" rating and a $25.00 target price on the stock. Weiss Ratings raised Planet Labs PBC from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, June 15th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $36.00 price objective on shares of Planet Labs PBC in a research note on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $33.56.

Insiders Place Their Bets

In other news, insider Robert Schingler sold 64,593 shares of the business's stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $25.92, for a total value of $1,674,250.56. Following the completion of the sale, the insider owned 825,541 shares of the company's stock, valued at approximately $21,398,022.72. The trade was a 7.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Ashley Johnson sold 75,035 shares of the company's stock in a transaction dated Thursday, July 23rd. The shares were sold at an average price of $22.08, for a total transaction of $1,656,772.80. Following the completion of the sale, the chief financial officer owned 1,132,122 shares in the company, valued at approximately $24,997,253.76. This trade represents a 6.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 171,122 shares of company stock valued at $4,148,906 in the last ninety days. Corporate insiders own 16.42% of the company's stock.

Hedge Funds Weigh In On Planet Labs PBC

Several large investors have recently added to or reduced their stakes in the company. American Capital Advisory LLC acquired a new position in Planet Labs PBC in the first quarter valued at approximately $28,000. Western Wealth Management LLC acquired a new stake in shares of Planet Labs PBC during the 1st quarter worth approximately $28,000. Pittenger & Anderson Inc. lifted its holdings in shares of Planet Labs PBC by 40.9% in the 1st quarter. Pittenger & Anderson Inc. now owns 1,360 shares of the company's stock worth $38,000 after purchasing an additional 395 shares during the last quarter. Whittier Trust Co. of Nevada Inc. bought a new stake in shares of Planet Labs PBC in the 1st quarter worth approximately $41,000. Finally, Parkside Financial Bank & Trust boosted its position in Planet Labs PBC by 92.5% during the 4th quarter. Parkside Financial Bank & Trust now owns 1,550 shares of the company's stock valued at $31,000 after purchasing an additional 745 shares during the period. 41.71% of the stock is currently owned by institutional investors.

Planet Labs PBC Stock Down 1.3%

The firm has a market cap of $6.45 billion, a price-to-earnings ratio of -15.86 and a beta of 2.10. The stock has a 50-day moving average of $23.84 and a 200-day moving average of $30.12. The company has a current ratio of 2.81, a quick ratio of 2.78 and a debt-to-equity ratio of 1.01.

Planet Labs PBC Company Profile

Planet Labs PBC is a public benefit corporation that operates one of the largest fleets of Earth-imaging satellites, providing high-frequency, high-resolution imagery and data analytics to a broad range of industries. The company's multi-spectral satellite constellation captures daily snapshots of the planet, enabling clients to monitor changes in agriculture, forestry, urban development, energy infrastructure and environmental conditions. Planet's imagery platform is designed to support timely decision-making by transforming raw satellite data into actionable insights for business and government users.

Founded in 2010 by former NASA scientists Will Marshall, Robbie Schingler and Chris Boshuizen, Planet Labs grew from a small startup into a key provider in the satellite imaging sector.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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