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Planet Labs vs. Snowflake: Which AI Data Stock Has an Edge Now?
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Key Takeaways
Planet Labs pairs satellite imagery with AI analytics, with government and defense deals driving growth.
Planet Labs backlog reached $900M in fiscal 2026, up 79% YoY, and it launched 40 satellites.
Snowflake's AI adoption rose to 9,100 accounts. Fiscal 2027 product revenues are forecast near $5.66B.
Artificial Intelligence (AI) is reshaping the software landscape, redefining categories and competitive dynamics. Per The Business Research Company, the AI software market is projected to grow to $995.45 billion by 2030 at a compound annual growth rate (CAGR) of 26.7%. With increased adoption and integration of AI into core operations to control costs and improve customer experience, the market is expected to grow exponentially.
In this context, Planet Labs (PL - Free Report) and Snowflake Inc. (SNOW - Free Report) are worth mentioning as both deploy AI into their core functions. Planet Labs is a leading provider of Earth-imaging data and geospatial analytics, operating the largest fleet of Earth-observation satellites globally. Snowflake provides a cloud-based data platform for various organizations in the United States and internationally. Let's discuss in detail.
The Case for Planet Labs
Planet Labs is an Earth observation company that integrates satellite imagery with AI-driven software to provide real-time geospatial intelligence. It generates most of its revenues through a mix of fixed-price subscriptions and usage-based contracts, offering satellite data and analytics via a cloud-based platform to government agencies and large enterprise customers. Its growth is increasingly driven by the scaling of its subscription model, sustained demand from government clients and a strategic pivot toward higher-value services and advanced analytics.
In recent years, Planet Labs has focused on securing large government and defense contracts, which improve revenue visibility and add long-term stability. While this segment continues to be a key growth engine, management also sees significant long-term potential in the commercial market. Continued product innovation is expected to accelerate adoption among commercial users. In particular, AI-powered analytics—originally developed for government use—is opening up a wide range of commercial applications, including supply chain monitoring, security and surveillance, operational optimization, insurance risk modeling, financial insights, energy management and agricultural planning.
Over the past year, the company has strengthened its growth outlook by securing a €240 million contract backed by Germany and a nine-figure agreement with Sweden, launching 40 satellites, increasing investments in AI, and forming a strategic partnership with Google to explore in-space computing—further positioning itself for future expansion.
As of fiscal 2026, backlog was $900 million, reflecting a 79% year-over-year increase and providing strong support for expected revenue acceleration. The year also marked Planet Labs’ first instance of achieving adjusted EBITDA profitability.
For fiscal 2027, management projects revenues between $415 million and $440 million, implying approximately 39% year-over-year growth at the midpoint. Gross margins are expected to range between 50% and 52%, with adjusted EBITDA projected between breakeven and $10 million.
The company is still in the red, and a rebound is not expected soon.
PL shares have gained 74% year to date.
The Case for Snowflake
Snowflake’s cloud-native platform serves as the foundation of the AI Data Cloud, bringing together structured, semi-structured, and unstructured data into a unified system. This enables organizations to create a single source of truth and leverage AI to generate insights, address business challenges, and develop innovative products and services.
Its consumption-based pricing model ties revenue growth directly to customer usage, driving strong net revenue retention and continued expansion within existing accounts.
By centralizing large-scale data environments on Snowflake, companies are transitioning away from legacy systems to a platform designed for scalability, reliability, and cost predictability. This shift empowers teams across the organization with high-performance, AI-ready analytics, enabling quicker and more informed decision-making. The core business remains solid, with AI driving increased workloads across the platform.
Rising demand for enterprise AI solutions has been a significant growth catalyst for Snowflake. For instance, as Capital One expands its AI initiatives, it relies on Snowflake to unify proprietary data, streamline engineering processes, and deliver AI-powered analytics across the enterprise. Growth is further supported by strong momentum in Snowflake’s AI offerings, with the company reporting its largest sequential increase in AI adoption this quarter—bringing the total to over 9,100 accounts.
Additionally, strategic partnerships with major cloud providers enhance Snowflake’s competitive positioning and reinforce its long-term moat. For fiscal 2027, the company expects product revenues of about $5.66 billion, representing 27% year-over-year growth.
Though revenues have been continually growing, net margin has remained under pressure. Also, the acquisition of Observe posed a 150-basis-point headwind to free cash flow margin which is a headwind.
SNOW shares have lost 38.8% year to date.
Estimates for PL and SNOW
The Zacks Consensus Estimate for PL’s fiscal 2027 revenues implies a year-over-year increase of 39.4%, while that for EPS suggests no change year over year. EPS estimates for fiscal 2027 have moved south in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SNOW’s fiscal 2027 revenues implies a year-over-year increase of 25.7%, and that for EPS implies a year-over-year increase of 44%. EPS estimates for fiscal 2027 witnessed no movement in the past 30 days.
Image Source: Zacks Investment Research
Are PL and SNOW Shares Expensive?
PL is trading at a forward sales multiple of 26.02, above its median of 3.65 over the last three years. SNOW’s forward sales multiple sits at 7.54, lower than its median of 14.33 over the last three years.
Image Source: Zacks Investment Research
Conclusion
Planet Labs, a data-driven company focused on Earth-observation imagery and analytics, is poised to grow, given the rising global demand for commercial satellites.
Snowflake’s expanding customer footprint, continued platform innovation and strong ecosystem of partners provide a solid foundation for long-term growth.
While PL is not expected to be profitable soon, SNOW, with continuous profits, less expensive valuation and a VGM Score of B, has an edge. Both PL and SNOW carry a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Planet Labs vs. Snowflake: Which AI Data Stock Has an Edge Now?
Key Takeaways
Artificial Intelligence (AI) is reshaping the software landscape, redefining categories and competitive dynamics. Per The Business Research Company, the AI software market is projected to grow to $995.45 billion by 2030 at a compound annual growth rate (CAGR) of 26.7%. With increased adoption and integration of AI into core operations to control costs and improve customer experience, the market is expected to grow exponentially.
In this context, Planet Labs (PL - Free Report) and Snowflake Inc. (SNOW - Free Report) are worth mentioning as both deploy AI into their core functions. Planet Labs is a leading provider of Earth-imaging data and geospatial analytics, operating the largest fleet of Earth-observation satellites globally. Snowflake provides a cloud-based data platform for various organizations in the United States and internationally. Let's discuss in detail.
The Case for Planet Labs
Planet Labs is an Earth observation company that integrates satellite imagery with AI-driven software to provide real-time geospatial intelligence. It generates most of its revenues through a mix of fixed-price subscriptions and usage-based contracts, offering satellite data and analytics via a cloud-based platform to government agencies and large enterprise customers. Its growth is increasingly driven by the scaling of its subscription model, sustained demand from government clients and a strategic pivot toward higher-value services and advanced analytics.
In recent years, Planet Labs has focused on securing large government and defense contracts, which improve revenue visibility and add long-term stability. While this segment continues to be a key growth engine, management also sees significant long-term potential in the commercial market. Continued product innovation is expected to accelerate adoption among commercial users. In particular, AI-powered analytics—originally developed for government use—is opening up a wide range of commercial applications, including supply chain monitoring, security and surveillance, operational optimization, insurance risk modeling, financial insights, energy management and agricultural planning.
Over the past year, the company has strengthened its growth outlook by securing a €240 million contract backed by Germany and a nine-figure agreement with Sweden, launching 40 satellites, increasing investments in AI, and forming a strategic partnership with Google to explore in-space computing—further positioning itself for future expansion.
As of fiscal 2026, backlog was $900 million, reflecting a 79% year-over-year increase and providing strong support for expected revenue acceleration. The year also marked Planet Labs’ first instance of achieving adjusted EBITDA profitability.
For fiscal 2027, management projects revenues between $415 million and $440 million, implying approximately 39% year-over-year growth at the midpoint. Gross margins are expected to range between 50% and 52%, with adjusted EBITDA projected between breakeven and $10 million.
The company is still in the red, and a rebound is not expected soon.
PL shares have gained 74% year to date.
The Case for Snowflake
Snowflake’s cloud-native platform serves as the foundation of the AI Data Cloud, bringing together structured, semi-structured, and unstructured data into a unified system. This enables organizations to create a single source of truth and leverage AI to generate insights, address business challenges, and develop innovative products and services.
Its consumption-based pricing model ties revenue growth directly to customer usage, driving strong net revenue retention and continued expansion within existing accounts.
By centralizing large-scale data environments on Snowflake, companies are transitioning away from legacy systems to a platform designed for scalability, reliability, and cost predictability. This shift empowers teams across the organization with high-performance, AI-ready analytics, enabling quicker and more informed decision-making. The core business remains solid, with AI driving increased workloads across the platform.
Rising demand for enterprise AI solutions has been a significant growth catalyst for Snowflake. For instance, as Capital One expands its AI initiatives, it relies on Snowflake to unify proprietary data, streamline engineering processes, and deliver AI-powered analytics across the enterprise. Growth is further supported by strong momentum in Snowflake’s AI offerings, with the company reporting its largest sequential increase in AI adoption this quarter—bringing the total to over 9,100 accounts.
Additionally, strategic partnerships with major cloud providers enhance Snowflake’s competitive positioning and reinforce its long-term moat.
For fiscal 2027, the company expects product revenues of about $5.66 billion, representing 27% year-over-year growth.
Though revenues have been continually growing, net margin has remained under pressure. Also, the acquisition of Observe posed a 150-basis-point headwind to free cash flow margin which is a headwind.
SNOW shares have lost 38.8% year to date.
Estimates for PL and SNOW
The Zacks Consensus Estimate for PL’s fiscal 2027 revenues implies a year-over-year increase of 39.4%, while that for EPS suggests no change year over year. EPS estimates for fiscal 2027 have moved south in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SNOW’s fiscal 2027 revenues implies a year-over-year increase of 25.7%, and that for EPS implies a year-over-year increase of 44%. EPS estimates for fiscal 2027 witnessed no movement in the past 30 days.
Image Source: Zacks Investment Research
Are PL and SNOW Shares Expensive?
PL is trading at a forward sales multiple of 26.02, above its median of 3.65 over the last three years. SNOW’s forward sales multiple sits at 7.54, lower than its median of 14.33 over the last three years.
Image Source: Zacks Investment Research
Conclusion
Planet Labs, a data-driven company focused on Earth-observation imagery and analytics, is poised to grow, given the rising global demand for commercial satellites.
Snowflake’s expanding customer footprint, continued platform innovation and strong ecosystem of partners provide a solid foundation for long-term growth.
While PL is not expected to be profitable soon, SNOW, with continuous profits, less expensive valuation and a VGM Score of B, has an edge. Both PL and SNOW carry a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.