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PL Versus BKSY: Which Satellite Imaging Stock Has More Upside?
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Key Takeaways
Planet Labs logged $900M backlog in fiscal 2026, up 79% Y/Y, and hit adjusted EBITDA profitability.
PL guides fiscal 2027 revenue of $415M-$440M, with gross margin of 50%-52%, despite losses.
BKSY's Gen-3 satellites deliver 35-cm imagery; pilot programs are converting into recurring subscriptions.
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. Per Global Market Insights, the Satellite Imaging market is estimated to grow 11% between 2024 and 2032, driven by increasing use of satellite imaging in defense and security applications, rising demand for environmental monitoring and developments in satellite technology.
In this context, Planet Labs (PL - Free Report) and BlackSky Technology (BKSY - 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. BlackSky Technology is a space-based technology company that delivers real-time imagery, analytics and high-frequency monitoring of the world’s most critical and strategic locations, economic assets and events. Let's discuss in detail.
The Case for Planet Labs
Planet Labs generates most of its revenue through fixed-price subscription agreements and usage-based contracts, delivering satellite imagery and geospatial analytics via its cloud-based platform to governments and large enterprises. Growth has been supported by the expansion of its subscription model, rising demand from government customers and a strategic move toward higher-value satellite services and AI-driven analytics solutions.
In recent years, the company has prioritized large-scale government and defense contracts, which offer stronger revenue visibility and long-term stability. While government business remains the primary growth driver, management continues to view the commercial market as a significant long-term opportunity. Advancements in AI-powered analytics, initially developed for defense applications, are expected to broaden adoption across industries, including supply chain management, insurance, agriculture, energy, financial services and operational monitoring.
As of fiscal 2026, Planet Labs reported a backlog of approximately $900 million, representing 79% year-over-year growth and supporting expectations for accelerating revenue expansion. The company also achieved adjusted EBITDA profitability for the first time during the year. For fiscal 2027, management projects revenues between $415 million and $440 million, implying roughly 39% annual growth at the midpoint, with gross margins expected to be between 50% and 52%.
Despite improving fundamentals, Planet Labs remains unprofitable and is not expected to achieve a near-term earnings turnaround. Significant ongoing investments in satellite development, deployment and replacement, combined with elevated R&D and operating expenses, continue to pressure margins. After multiple years of losses, the company is expected to remain in the red through fiscal 2027, while returns on equity and invested capital remain below industry averages.
The company is still in the red, and a rebound is not expected soon.
PL shares have gained 116.3% year to date.
The Case for BlackSky
BlackSky operates a real-time Earth observation platform that integrates its proprietary low-Earth-orbit satellite constellation with AI-powered analytics software, giving the company a differentiated position within the fast-growing defense and intelligence market. The business is well-positioned to benefit from rising global defense spending, scalable subscription-based economics and improving operating leverage.
The company is benefiting from a structural increase in demand for tactical intelligence and persistent monitoring capabilities. Governments and defense agencies increasingly require high-frequency, low-latency satellite imagery for applications such as military surveillance, border security, maritime tracking and battlefield intelligence. BlackSky’s Gen-3 satellites deliver 35-centimeter-resolution imagery with rapid revisit capabilities and AI-enabled analytics, supporting near real-time operational decision-making. Recent contract wins totaling up to $160 million — including a $99 million award from the U.S. Air Force Research Laboratory and a $25 million international defense agreement — reinforce the growing demand for its platform and capabilities.
At the same time, BlackSky is shifting toward a higher-margin recurring revenue model. Management indicated that several Gen-3 pilot programs have already converted into recurring subscription renewals across Asia, Europe and the Americas. This transition is expected to enhance revenue visibility, strengthen customer retention and support continued expansion in gross margins. The company’s increasing mix of high-margin subscription revenue is also driving meaningful improvement in adjusted EBITDA margins.
While BlackSky has not yet reached profitability, management expects revenue growth in excess of 50% in 2026, supported by strong contract momentum and improving demand visibility. The company also anticipates surpassing a $100 million annual revenue run rate while maintaining gross margins of approximately 80%, reflecting the scalability of its software-enabled intelligence platform.
BKSY shares have rallied 143.1% year to date.
Estimates for PL and BKSY
The Zacks Consensus Estimate for PL’s fiscal 2027 revenues implies a year-over-year increase of 39.4%, while the same for earnings per share (EPS) suggests no change year over year. EPS estimates have witnessed no movement in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BKSY’s 2026 revenues implies a year-over-year rise of 30.6%, and the same for EPS implies a year-over-year increase of 21.3%. EPS estimates witnessed southbound movement in the past 30 days.
Image Source: Zacks Investment Research
Are PL and BKSY Shares Expensive?
PL is trading at a forward sales multiple of 31.38, above its median of 3.66 over the last three years. BKSY’s forward sales multiple sits at 10.55, higher than its median of 2.16 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.
BlackSky’s growing strategic relevance could help it evolve from a niche satellite operator into a critical real-time geospatial intelligence platform. Given BKSY’s less expensive valuation and price appreciation, it has an edge over PL. BKSY carries a Zacks Rank #3 (Hold), while PL carries a Zacks Rank #5 (Strong Sell).
View the Zacks #1 Rank List
Image: Bigstock
PL Versus BKSY: Which Satellite Imaging Stock Has More Upside?
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. Per Global Market Insights, the Satellite Imaging market is estimated to grow 11% between 2024 and 2032, driven by increasing use of satellite imaging in defense and security applications, rising demand for environmental monitoring and developments in satellite technology.
In this context, Planet Labs (PL - Free Report) and BlackSky Technology (BKSY - 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. BlackSky Technology is a space-based technology company that delivers real-time imagery, analytics and high-frequency monitoring of the world’s most critical and strategic locations, economic assets and events. Let's discuss in detail.
The Case for Planet Labs
Planet Labs generates most of its revenue through fixed-price subscription agreements and usage-based contracts, delivering satellite imagery and geospatial analytics via its cloud-based platform to governments and large enterprises. Growth has been supported by the expansion of its subscription model, rising demand from government customers and a strategic move toward higher-value satellite services and AI-driven analytics solutions.
In recent years, the company has prioritized large-scale government and defense contracts, which offer stronger revenue visibility and long-term stability. While government business remains the primary growth driver, management continues to view the commercial market as a significant long-term opportunity. Advancements in AI-powered analytics, initially developed for defense applications, are expected to broaden adoption across industries, including supply chain management, insurance, agriculture, energy, financial services and operational monitoring.
As of fiscal 2026, Planet Labs reported a backlog of approximately $900 million, representing 79% year-over-year growth and supporting expectations for accelerating revenue expansion. The company also achieved adjusted EBITDA profitability for the first time during the year.
For fiscal 2027, management projects revenues between $415 million and $440 million, implying roughly 39% annual growth at the midpoint, with gross margins expected to be between 50% and 52%.
Despite improving fundamentals, Planet Labs remains unprofitable and is not expected to achieve a near-term earnings turnaround. Significant ongoing investments in satellite development, deployment and replacement, combined with elevated R&D and operating expenses, continue to pressure margins. After multiple years of losses, the company is expected to remain in the red through fiscal 2027, while returns on equity and invested capital remain below industry averages.
The company is still in the red, and a rebound is not expected soon.
PL shares have gained 116.3% year to date.
The Case for BlackSky
BlackSky operates a real-time Earth observation platform that integrates its proprietary low-Earth-orbit satellite constellation with AI-powered analytics software, giving the company a differentiated position within the fast-growing defense and intelligence market. The business is well-positioned to benefit from rising global defense spending, scalable subscription-based economics and improving operating leverage.
The company is benefiting from a structural increase in demand for tactical intelligence and persistent monitoring capabilities. Governments and defense agencies increasingly require high-frequency, low-latency satellite imagery for applications such as military surveillance, border security, maritime tracking and battlefield intelligence. BlackSky’s Gen-3 satellites deliver 35-centimeter-resolution imagery with rapid revisit capabilities and AI-enabled analytics, supporting near real-time operational decision-making. Recent contract wins totaling up to $160 million — including a $99 million award from the U.S. Air Force Research Laboratory and a $25 million international defense agreement — reinforce the growing demand for its platform and capabilities.
At the same time, BlackSky is shifting toward a higher-margin recurring revenue model. Management indicated that several Gen-3 pilot programs have already converted into recurring subscription renewals across Asia, Europe and the Americas. This transition is expected to enhance revenue visibility, strengthen customer retention and support continued expansion in gross margins. The company’s increasing mix of high-margin subscription revenue is also driving meaningful improvement in adjusted EBITDA margins.
While BlackSky has not yet reached profitability, management expects revenue growth in excess of 50% in 2026, supported by strong contract momentum and improving demand visibility. The company also anticipates surpassing a $100 million annual revenue run rate while maintaining gross margins of approximately 80%, reflecting the scalability of its software-enabled intelligence platform.
BKSY shares have rallied 143.1% year to date.
Estimates for PL and BKSY
The Zacks Consensus Estimate for PL’s fiscal 2027 revenues implies a year-over-year increase of 39.4%, while the same for earnings per share (EPS) suggests no change year over year. EPS estimates have witnessed no movement in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BKSY’s 2026 revenues implies a year-over-year rise of 30.6%, and the same for EPS implies a year-over-year increase of 21.3%. EPS estimates witnessed southbound movement in the past 30 days.
Image Source: Zacks Investment Research
Are PL and BKSY Shares Expensive?
PL is trading at a forward sales multiple of 31.38, above its median of 3.66 over the last three years. BKSY’s forward sales multiple sits at 10.55, higher than its median of 2.16 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.
BlackSky’s growing strategic relevance could help it evolve from a niche satellite operator into a critical real-time geospatial intelligence platform.
Given BKSY’s less expensive valuation and price appreciation, it has an edge over PL. BKSY carries a Zacks Rank #3 (Hold), while PL carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.