Planet Labs Stock Soars Over 765% After First Profitable Year

Edgen Stock·Mar 27 2026, 12:52

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Key Takeaways

Planet Labs has transitioned from a high-growth startup to a profitable enterprise, sending its stock soaring. The company's first profitable fiscal year, announced on March 27, 2026, was driven by a record backlog of government and defense contracts and a strategic expansion into AI-enabled satellite services.

Massive Stock Appreciation: Shares of Planet Labs (PL) have gained over 765% in the past year, climbing from $4.00 to a new 52-week high of $36.38 as the company achieved its first full fiscal year of profitability.
Record Financial Performance: The company reported a record backlog of approximately $900 million and a 361% year-over-year increase in Remaining Performance Obligations, supported by a strong fourth quarter where revenue grew 41.1% to $86.8 million.
Government and AI Fuel Growth: Major government contracts, including a €240 million German agreement, are fueling current growth, while strategic partnerships with NVIDIA and Google to develop AI for planetary intelligence are positioning the company for future expansion.

PL Stock Skyrockets 812% on First Profitable Year

Shares of Planet Labs (NYSE:PL) have delivered a dramatic recovery, gaining nearly 812% over the last twelve months to hit a 52-week high of $36.38. The surge follows the company's announcement on March 27, 2026, that it achieved its first full fiscal year of profitability. This milestone was underpinned by stellar fourth-quarter 2025 results, where revenue grew 41.1% year-over-year to $86.8 million, significantly beating analyst expectations. The company also posted an adjusted breakeven earnings per share, a notable improvement from a loss in the prior year and ahead of the forecasted loss of $0.05 per share.

Record $900M Backlog Driven by Government Contracts

The company's financial turnaround is supported by robust and predictable demand, primarily from government clients. Planet Labs has accumulated a record backlog of approximately $900 million, with Remaining Performance Obligations climbing 361% year-over-year to $672.47 million. Key awards bolstering this growth include a multi-year €240 million agreement with the German government, a $12.8 million contract for AI-enabled Maritime Domain Awareness, a $13.2 million NRO renewal, and a $13.5 million NASA task order. This heavy reliance on long-term government contracts provides significant revenue visibility and contract durability.

AI Partnerships Signal Future Data Intelligence Focus

Planet Labs is strategically positioning itself beyond satellite imagery and into data intelligence by forging key partnerships in artificial intelligence. The company is working with NVIDIA to build an AI engine for processing satellite data and collaborating with Google to develop TPU-powered AI computing prototypes in space by 2027. This push into AI, combined with the launch of its next-generation Pelican-3 and Pelican-4 satellites in November 2025, expands its addressable market. Analysts have taken notice, with Morgan Stanley raising its price target to $35, citing strong defense demand, though it maintains an Equal Weight rating due to near-term margin pressure from these strategic investments.