Planet Labs PBC (NYSE:PL) Surpasses Q2 FY2026 Estimates with Record Revenue and Improved Profitability

Planet Labs PBC (NYSE:PL) reported second-quarter fiscal year 2026 results that surpassed analyst expectations, driven by strong demand for its Earth observation data and analytics services. The company posted record revenue and demonstrated significant progress toward profitability, with notable improvements in key financial metrics.

Financial Performance Versus Estimates

The company reported revenue of $73.4 million for the quarter ended July 31, 2025, representing a 20% year-over-year increase. This figure exceeded the analyst consensus estimate of $67.7 million. Non-GAAP earnings per share came in at a loss of $0.03, which was better than the anticipated loss of $0.0431 per share.

Key financial highlights from the quarter include:

• Record quarterly revenue of $73.4 million, up 20% year-over-year
• Non-GAAP gross margin improved to 61%, compared to 58% in the prior-year period
• Adjusted EBITDA of $6.4 million profit, a significant improvement from the $4.4 million loss in Q2 FY2025
• Net loss narrowed to $22.6 million from $38.7 million in the same quarter last year
• Cash, cash equivalents, and short-term investments totaled $271.5 million at quarter-end

Market Reaction and Price Action

The market responded positively to these results, with the stock showing a pre-market gain of approximately 12.25%. This positive momentum follows mixed performance in recent weeks, with the stock essentially flat over the past two weeks but up about 4.15% over the past month. The strong earnings beat appears to have renewed investor confidence in the company's growth trajectory and path to profitability.

Business Highlights and Contract Wins

Planet's strong quarter was supported by several significant contract wins across government and commercial sectors. The company secured a €240 million multi-year satellite services contract in support of European peace and security, which includes a large renewal component and is expected to begin contributing to revenue in January 2026. Other notable wins include expanded contracts with the U.S. Department of Defense, National Reconnaissance Office, and NATO, demonstrating the critical role of Planet's capabilities in national security and global monitoring.

The company also continued to expand its commercial partnerships, signing renewals with the UK Rural Payments Agency and new agreements with companies including SwissRe and Farmdar. These contracts leverage Planet's data for applications ranging from agricultural monitoring to innovative insurance solutions.

Operational Developments

Planet successfully launched two additional next-generation Pelican satellites in August 2025, which are now undergoing commissioning. The company also celebrated the one-year anniversary of its Tanager-1 satellite, which has detected more than 5,500 methane and CO2 plumes from over 3,000 sources in collaboration with the Carbon Mapper Coalition.

Forward Guidance and Analyst Expectations

For the third quarter of fiscal year 2026, Planet expects revenue between $71 million and $74 million, compared to analyst estimates of $70.7 million. The company anticipates non-GAAP gross margin of 55-56% and adjusted EBITDA between a $4 million loss and break-even.

For the full fiscal year 2026, management guided for revenue of $281-$289 million, slightly above the analyst consensus of $281 million. The company expects to achieve adjusted EBITDA between a $7 million loss and break-even for the full year.

Conclusion

Planet's strong second-quarter results demonstrate accelerating momentum across both government and commercial segments. The company's ability to exceed revenue expectations while showing significant improvement in profitability metrics suggests that its investments in technology and market expansion are yielding positive results. The substantial backlog, particularly from major government contracts, provides visibility into future growth and supports management's confidence in the company's trajectory.

For more detailed earnings information and analyst estimates, visit Planet Labs' earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.