Planet Labs Surges After Beating Q1, Raising Guidance

Planet Labs reported a strong first quarter for fiscal 2026, with revenue rising 10% year-over-year to $66.3 million and marking its first-ever quarter of positive free cash flow at $8 million. The company achieved break-even non-GAAP earnings per share, beating consensus estimates, and posted an adjusted EBITDA of $1.2 million. Backlog surged 140% year-over-year to $527 million, driven by major contract wins in the defense, intelligence, and government sectors. Management raised full-year revenue guidance to $265–$280 million and projected Q2 revenue between $65 and $67 million, both above analyst expectations. Analysts from Citizens JMP and Needham reiterated buy or outperform ratings and maintained price targets above current levels. Despite earlier underperformance against the broader market, Planet Labs' stock rebounded sharply on the results and improved outlook.