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The Zacks Consensus Estimate for PL’s first-quarter revenues is pegged at $89.8 million, indicating a 35.5% increase from the year-ago reported figure.
The consensus estimate for the bottom line is pegged at a loss of 3 cents per share. The Zacks Consensus Estimate for PL’s first-quarter earnings witnessed no movement in the past 30 days.
Image Source: Zacks Investment Research
Planet Labs’ Decent Earnings Surprise History
Planet Labs’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and matched the same once, the average surprise being 75%.
What the Zacks Model Unveils for PL
Our proven model does not conclusively predict an earnings beat for Planet Labs this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat. This is not the case, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Planet Labs has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 3 cents per share.
Planet Labs' revenues in the to-be-reported quarter are likely to have been supported by its growing emphasis on government and defense customers, along with the continued expansion of its fixed-price subscription and usage-based contract model.
Broader adoption of the company's geospatial intelligence solutions across commercial industries—including agriculture, energy, insurance, and supply chain management—likely provided an additional boost to revenue growth. Strong demand for data subscriptions, analytics solutions, and satellite services may have further strengthened performance within the Defense & Intelligence segment.
Entering the quarter with a record backlog of $900 million, Planet Labs is likely to have benefited from converting existing contracts into recognized revenues, supporting top-line momentum. Rising demand for advanced analytics capabilities among government agencies and enterprise customers is likely to have contributed to growth in higher-margin software and data services.
On the expense side, profitability was likely pressured by increased sales, marketing, and administrative costs associated with scaling operations and securing larger contracts. In addition, ongoing investments in satellite development, launches, fleet maintenance, and research and development are likely to have weighed on margins despite revenue growth. These expenditures remain critical to maintaining the company's technological leadership, expanding its capabilities, and ensuring the quality and reliability of its data offerings.
PL’s Price Performance & Valuation
The stock has underperformed the industry, but outperformed its sector and the S&P 500 in the first quarter of 2027.
Image Source: Zacks Investment Research
The stock is trading at a price-to-sales value of 33.85X, higher than the industry’s 3.74X. It is attractively valued compared to Rocket Lab Corporation (RKLB - Free Report) but expensive compared to BlackSky Technology (BKSY - Free Report) .
Image Source: Zacks Investment Research
Investment Thesis
Planet Labs has increasingly prioritized large-scale government and defense contracts, which offer stronger revenue visibility and greater long-term stability. While this segment remains the company’s key growth driver, management continues to view the commercial market as a significant long-term opportunity.
Enhancements to Planet Labs’ products and services are expected to support wider adoption among commercial customers. In particular, the expansion of AI-driven analytics capabilities—originally developed for government applications—is likely to create new opportunities across industries, including supply chain monitoring, surveillance, operational efficiency, insurance risk assessment, financial analysis, energy management and agriculture.
For fiscal 2027, management expects revenues between $415 million and $440 million, representing approximately 39% year-over-year growth at the midpoint of the guidance range. Gross margins are projected to be in the range of 50% to 52%, while adjusted EBITDA is expected to range from breakeven to $10 million.
Despite these growth prospects, Planet Labs is not expected to achieve profitability in the near term. Continued investments in satellite development, deployment, and replacement, along with substantial research and development spending, continue to pressure margins. The company also incurs significant sales, marketing, and administrative costs. After posting losses over the past five years, Planet Labs is projected to remain unprofitable through fiscal 2027. Furthermore, returns on equity and invested capital remain below industry averages, underscoring ongoing profitability and execution challenges.
How to Play PL Stock
Planet Labs, a data-driven company focused on Earth-observation imagery and analytics, is poised to grow in long term, given the rising global demand for commercial satellites.
However, current factors warrant caution. With the stock trading at a premium, returns on capital comparing unfavorably with the industry, looming near-term earnings pressure, muted analyst sentiment and a VGM Score of D, it is better to stay cautious on this Zacks Rank #3 (Hold) stock.
View the Zacks #1 Rank List
Image: Zacks
Here's How to Play Planet Labs Stock Before Q1 Earnings
Key Takeaways
Planet Labs (PL - Free Report) is set to report fiscal first-quarter 2027 results on June 4, after market close.
The Zacks Consensus Estimate for PL’s first-quarter revenues is pegged at $89.8 million, indicating a 35.5% increase from the year-ago reported figure.
The consensus estimate for the bottom line is pegged at a loss of 3 cents per share. The Zacks Consensus Estimate for PL’s first-quarter earnings witnessed no movement in the past 30 days.
Image Source: Zacks Investment Research
Planet Labs’ Decent Earnings Surprise History
Planet Labs’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and matched the same once, the average surprise being 75%.
What the Zacks Model Unveils for PL
Our proven model does not conclusively predict an earnings beat for Planet Labs this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat. This is not the case, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Planet Labs has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 3 cents per share.
Planet Labs PBC Price and EPS Surprise
Planet Labs PBC price-eps-surprise | Planet Labs PBC Quote
Zacks Rank: PL currently has a Zacks Rank #3.
Factors Likely to Shape PL’s Q1 Results
Planet Labs' revenues in the to-be-reported quarter are likely to have been supported by its growing emphasis on government and defense customers, along with the continued expansion of its fixed-price subscription and usage-based contract model.
Broader adoption of the company's geospatial intelligence solutions across commercial industries—including agriculture, energy, insurance, and supply chain management—likely provided an additional boost to revenue growth. Strong demand for data subscriptions, analytics solutions, and satellite services may have further strengthened performance within the Defense & Intelligence segment.
Entering the quarter with a record backlog of $900 million, Planet Labs is likely to have benefited from converting existing contracts into recognized revenues, supporting top-line momentum. Rising demand for advanced analytics capabilities among government agencies and enterprise customers is likely to have contributed to growth in higher-margin software and data services.
On the expense side, profitability was likely pressured by increased sales, marketing, and administrative costs associated with scaling operations and securing larger contracts. In addition, ongoing investments in satellite development, launches, fleet maintenance, and research and development are likely to have weighed on margins despite revenue growth. These expenditures remain critical to maintaining the company's technological leadership, expanding its capabilities, and ensuring the quality and reliability of its data offerings.
PL’s Price Performance & Valuation
The stock has underperformed the industry, but outperformed its sector and the S&P 500 in the first quarter of 2027.
Image Source: Zacks Investment Research
The stock is trading at a price-to-sales value of 33.85X, higher than the industry’s 3.74X. It is attractively valued compared to Rocket Lab Corporation (RKLB - Free Report) but expensive compared to BlackSky Technology (BKSY - Free Report) .
Image Source: Zacks Investment Research
Investment Thesis
Planet Labs has increasingly prioritized large-scale government and defense contracts, which offer stronger revenue visibility and greater long-term stability. While this segment remains the company’s key growth driver, management continues to view the commercial market as a significant long-term opportunity.
Enhancements to Planet Labs’ products and services are expected to support wider adoption among commercial customers. In particular, the expansion of AI-driven analytics capabilities—originally developed for government applications—is likely to create new opportunities across industries, including supply chain monitoring, surveillance, operational efficiency, insurance risk assessment, financial analysis, energy management and agriculture.
For fiscal 2027, management expects revenues between $415 million and $440 million, representing approximately 39% year-over-year growth at the midpoint of the guidance range. Gross margins are projected to be in the range of 50% to 52%, while adjusted EBITDA is expected to range from breakeven to $10 million.
Despite these growth prospects, Planet Labs is not expected to achieve profitability in the near term. Continued investments in satellite development, deployment, and replacement, along with substantial research and development spending, continue to pressure margins. The company also incurs significant sales, marketing, and administrative costs. After posting losses over the past five years, Planet Labs is projected to remain unprofitable through fiscal 2027. Furthermore, returns on equity and invested capital remain below industry averages, underscoring ongoing profitability and execution challenges.
How to Play PL Stock
Planet Labs, a data-driven company focused on Earth-observation imagery and analytics, is poised to grow in long term, given the rising global demand for commercial satellites.
However, current factors warrant caution. With the stock trading at a premium, returns on capital comparing unfavorably with the industry, looming near-term earnings pressure, muted analyst sentiment and a VGM Score of D, it is better to stay cautious on this Zacks Rank #3 (Hold) stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.