Planet Labs (NYSE: PL) Posts Record $116.1M Q2 Revenue, 58% YoY Growth

Planet Labs PBC (NYSE: PL) reported record quarterly revenue of $116.1 million for the second quarter of fiscal year 2027, ended July 31, 2026, representing 58.0% year-over-year growth. Adjusted EPS came in at $0.02, beating the consensus estimate of -$0.02, while GAAP EPS was -$0.03.

Q2 FY2027 Results

• Revenue: $116.1 million, up 58.0% year-over-year from $73.5 million in Q2 FY2026, a quarterly record for the company.
• GAAP net loss: ($9.4) million, improved from ($22.6) million in the prior-year period.
• Adjusted EBITDA: $13.9 million profit, up from $6.4 million in Q2 FY2026, reflecting meaningful operating leverage.
• GAAP gross margin: 57%, compared to 58% in Q2 FY2026; non-GAAP gross margin was 59%, versus 61% in the year-ago quarter.
• Cash, cash equivalents, and short-term investments: $865.4 million at quarter end, up 219% year-over-year. During the quarter, Planet raised approximately $120 million through stock sales under its At-The-Market program at an average net sale price of $31.95 per share after expenses.

What Drove the Results

Adjusted EPS of $0.02 beat the -$0.02 consensus estimate, a positive surprise of 180.3%. GAAP EPS of -$0.03 was flat year-over-year versus the prior-year GAAP figure of -$0.03. The gap between GAAP and non-GAAP results reflects the ongoing impact of stock-based compensation and other non-cash items.

The operating leverage story is the clearest signal in the quarter: adjusted EBITDA more than doubled to $13.9 million from $6.4 million a year ago, even as non-GAAP gross margin compressed modestly from 61% to 59%. Year-to-date operating cash flow reached $68.4 million, with year-to-date free cash flow of $21.3 million and adjusted free cash flow of $28.8 million.

Remaining performance obligations stood at approximately $753.1 million, with roughly 46% expected to convert in the next twelve months. Total backlog reached approximately $814.9 million, with about 50% applicable to the next twelve months, providing a measurable demand buffer.

Recent Business Activity

Planet secured several contract wins in the weeks surrounding the quarter close. In August, the National Geospatial-Intelligence Agency awarded Planet an $8 million contract for its Global Monitoring Service. The German government awarded Planet a tender for dedicated satellite capacity services with a maximum possible value of €25 million over five years. An unnamed European government customer signed a seven-figure, one-year agreement for high-resolution imagery and professional services. Planet also signed its first national program in Africa with the Rwanda Space Agency.

On the technology side, Planet launched the Pelican-11 technical demonstration satellite in July, bringing high-resolution Pelicans on orbit to ten. The company shipped its Tanager-2 satellite and 18 SuperDove satellites to Vandenberg Space Force Base ahead of a SpaceX Transporter-18 mission. Planet also announced a strategic launch agreement with European company Isar Aerospace and began operational readiness activities at its Berlin manufacturing facility as of September 1, 2026.

Wall Street View

Q3 FY2027 revenue guidance of $101 million to $105 million came in materially below the analyst consensus of $114.3 million. For the full fiscal year 2027, Planet raised its revenue outlook to $430 million to $441 million from a prior range of $425 million to $441 million, against a consensus estimate of $435.7 million. Full-year adjusted EBITDA is guided to $3 million to $10 million profit, with full-year capital expenditures expected in the range of $100 million to $115 million.

Investor Takeaway

The Q2 results confirm that Planet's revenue growth and operating leverage are materializing faster than the year-ago baseline suggested, but the Q3 guidance shortfall of roughly $9 million to $13 million versus consensus introduces near-term uncertainty about demand pacing. The company's backlog of $814.9 million and 98% recurring annual contract value provide a structural floor, but investors will focus on whether the Q3 step-down reflects timing of contract recognition or a broader slowdown in new bookings. Shares fell -8.20% on September 3, 2026, while the S&P 500 gained 1.05%.