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Planet Labs vs. BlackSky: Which Space Stock Is the Better Pick?
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Key Takeaways
Planet Labs and BlackSky are benefiting from rising demand for satellite imagery and AI-powered analytics.
PL's fiscal Q2 revenues surged 58% to $116 million, with backlog reaching approximately $815 million.
BKSY's revenues jumped 50% to $33.3 million, while its 3.61X forward sales multiple trails PL's 9.25X.
The increasing demand for satellite imagery, geospatial intelligence and AI-powered analytics is opening significant opportunities for companies operating in this space.
Against this backdrop, Planet Labs PBC (PL - Free Report) and BlackSky Technology Inc. (BKSY - Free Report) are worth mentioning as both are expanding satellite capabilities amid growing customer demand.
Planet Labs provides satellite imagery, geospatial data and analytics to government and commercial customers through its extensive Earth observation satellite fleet. BlackSky is a provider of real-time geospatial intelligence and global monitoring services of some of the world’s most critical and strategic locations, economic assets and events.
Let us examine their growth prospects and challenges to determine which stock offers a more attractive investment opportunity.
The Case for Planet Labs
Planet Labs has a differentiated position in the Earth-observation industry, combining daily global monitoring with a decade-long imagery archive. In the second quarter of fiscal 2027, revenues surged 58% year over year to $116 million. Defense and Intelligence revenues (including satellite services revenues) rose more than 90% year over year, while commercial and civil-government revenues increased over 15% and 5%, respectively. The handover of the Pelican satellite to the Swedish Armed Forces supported top-line growth.
Expanding relationships with governments further strengthen its prospects. In August, the company was awarded a satellite services tender by Germany’s Federal Ministry of the Interior, making the country the first civil government to procure its dedicated Constellation Services. The tender includes options and has a maximum possible value of €25 million over five years. On the last earnings call, Planet Labs also highlighted an $8 million award from the National Geospatial-Intelligence Agency for its Global Monitoring Service. It was recently selected by the European Space Agency to develop Slovenia’s Space Resilience Node.
On the last earnings call, management added that it had identified more than $4 billion in satellite-services opportunities, with over 25% qualified as near-term. The company had a backlog of approximately $815 million, up about 11% year over year at the end of the fiscal second quarter. Roughly 50% of the backlog applies to the next 12 months and 70% to the next 24 months. Planet Labs estimates that executing contracts already in backlog could generate more than $400 million in revenues over the next four quarters, excluding new business and renewals. Management added that the company is confident it can sustain “high growth rates in future years,” supported by near-term visibility and pipeline strength.
Planet Labs is also expanding capacity and advancing its satellite roadmap to support this opportunity. The company recently opened its Berlin manufacturing facility, which is expected to produce Pelican satellites and eventually scale to as many as 60 satellites per year. It recently launched the Pelican-12 satellite into orbit.
Before that, Planet Labs announced the launch of 20 satellites, which include a Google Project Suncatcher prototype, Tanager-2 and 18 SuperDoves. Suncatcher satellite will test Google’s Tensor Processing Units in space for the first time.
Planet Labs is accelerating Owl, its upcoming next-generation monitoring satellite. Owl is expected to upgrade Planet Labs' monitoring capabilities from 3-meter to 1-meter-class resolution while providing roughly 10 times more data at about 10 times the speed, added management.
Financial strength provides another competitive advantage. Planet Labs exited the second quarter of fiscal 2027 with approximately $865 million in cash, cash equivalents and short-term investments, up more than 200% year over year. This increase was driven by positive free cash flow and proceeds from capital transactions over the past year.
Planet Labs also has its fair share of challenges. Quarterly performance will remain uneven owing to the timing of satellite deliveries. Sweden’s satellite handover pulled revenues into the fiscal second quarter from the fiscal third quarter. Fiscal third-quarter guidance of $101-$105 million therefore implies a sequential revenue decline, alongside an expected adjusted EBITDA loss of $1-$6 million.
Growth also requires substantial investment. Planet Labs spent about $29 million in capital expenditures in the fiscal second quarter and expects fiscal 2027 capex of $100-$115 million. Management expects capex to increase in future quarters as it plans to channel spending toward manufacturing expansion in San Francisco and Berlin, supply-chain resiliency and next-generation satellite fleets.
Moreover, the increasing competition in the Earth observation space leaves less room for execution missteps. New satellites and AI offerings must deliver commercially, not merely meet development milestones.
The Case for BlackSky
BlackSky is gaining momentum from rising demand for real-time geospatial intelligence and its expanding Gen-3 satellite constellation. Its vertically integrated platform combines high-resolution Gen-3 satellite imagery, low-latency delivery and real-time AI insights through its Spectra platform to address mission-critical national security requirements.
The company's second-quarter 2026 revenues increased 50% year over year to $33.3 million, supported by space-based intelligence and AI services business.
On the August earnings call, BlackSky noted that it has a pipeline of more than 20 Gen-3 satellites underway and is on track to have eight Gen-3 satellites in orbit by the end of the year. The company is on track for an on-time delivery of its first sovereign Gen-3 satellite in 2026. In September, the company announced that it “collected and processed first-light imagery” from the fifth Gen-3 satellite in less than 20 hours after liftoff, underscoring rapid commissioning capabilities.
The company expects rapid growth driven by strong backlog and improving visibility from multi-year subscription contracts for its space-based intelligence and AI services. In the last reported quarter, Space-based intelligence and AI services revenues reached $24.5 million, increasing 50% sequentially.
BlackSky's subscription business is also improving profitability. Second-quarter adjusted EBITDA reached $4.7 million, translating into a 14.2% margin. Its imagery and AI subscription business achieved an approximately $100 million annualized revenue run rate, creating a stronger recurring revenue foundation.
The company continues to strengthen its international contract portfolio. International subscription revenues surged 150% year over year, highlighting growing demand from overseas government customers. On the last earnings call, the company noted that it had secured up to $200 million in bookings year to date, while multi-year international contracts for space-based intelligence subscriptions represented more than 80% of total funded backlog.
In October, BlackSky secured a six-figure Gen-3 on-Demand pilot imagery services agreement with a new international intelligence customer. It also expanded its partnership with HEO through a seven-figure annual contract extension for non-Earth imaging services, incorporating Gen-3 capabilities. In September, BlackSky announced that its Gen-3 satellites will be part of a 50-satellite constellation developed under a $1 billion investment involving Marlan Space, Loft Orbital, Mistral AI, along with organizations in the UAE and France.
The company ended second-quarter 2026 with $244.1 million in cash and cash equivalents, restricted cash and short-term investments. BKSY had more than $325 million in total liquidity, following a $150 million ATM raise.
Nevertheless, BlackSky faces challenges. Its smaller revenue base and substantial exposure to defense and intelligence spending increase sensitivity to government procurement cycles. Increasing capex is another concern. Capital expenditures for 2026 are expected to be between $50 million and $60 million.
BlackSky reaffirmed its 2026 revenue guidance of $130 million to $150 million and adjusted EBITDA outlook of $12 million to $24 million. However, achieving sustained growth hinges on additional Gen-3 deployment, contract execution and successful commercialization of newer technologies.
Price Performance & Valuations of PL & BKSY
Year to date, PL and BKSY are down 30.4% and 7.4%, respectively.
Image Source: Zacks Investment Research
PL is trading at a forward price-to-sales multiple of 9.25X, higher than BKSY’s 3.61X.
Image Source: Zacks Investment Research
How Do the Consensus Estimates Compare for PL & BKSY?
Analysts have upped their earnings estimates for PL by 28.6% for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
Estimates have been unchanged for BKSY’s bottom line in the same period.
Image Source: Zacks Investment Research
PL or BKSY: Which Is a Better Pick
Both PL and BKSY carry a Zacks Rank #3 (Hold) at present.
Planet Labs' financial flexibility, broader customer applications and sizeable backlog give it an edge over BlackSky for investors seeking exposure to the evolving space economy.
View the Zacks #1 Rank List
Image: Bigstock
Planet Labs vs. BlackSky: Which Space Stock Is the Better Pick?
Key Takeaways
The increasing demand for satellite imagery, geospatial intelligence and AI-powered analytics is opening significant opportunities for companies operating in this space.
Against this backdrop, Planet Labs PBC (PL - Free Report) and BlackSky Technology Inc. (BKSY - Free Report) are worth mentioning as both are expanding satellite capabilities amid growing customer demand.
Planet Labs provides satellite imagery, geospatial data and analytics to government and commercial customers through its extensive Earth observation satellite fleet. BlackSky is a provider of real-time geospatial intelligence and global monitoring services of some of the world’s most critical and strategic locations, economic assets and events.
Let us examine their growth prospects and challenges to determine which stock offers a more attractive investment opportunity.
The Case for Planet Labs
Planet Labs has a differentiated position in the Earth-observation industry, combining daily global monitoring with a decade-long imagery archive. In the second quarter of fiscal 2027, revenues surged 58% year over year to $116 million. Defense and Intelligence revenues (including satellite services revenues) rose more than 90% year over year, while commercial and civil-government revenues increased over 15% and 5%, respectively. The handover of the Pelican satellite to the Swedish Armed Forces supported top-line growth.
Expanding relationships with governments further strengthen its prospects. In August, the company was awarded a satellite services tender by Germany’s Federal Ministry of the Interior, making the country the first civil government to procure its dedicated Constellation Services. The tender includes options and has a maximum possible value of €25 million over five years. On the last earnings call, Planet Labs also highlighted an $8 million award from the National Geospatial-Intelligence Agency for its Global Monitoring Service. It was recently selected by the European Space Agency to develop Slovenia’s Space Resilience Node.
On the last earnings call, management added that it had identified more than $4 billion in satellite-services opportunities, with over 25% qualified as near-term. The company had a backlog of approximately $815 million, up about 11% year over year at the end of the fiscal second quarter. Roughly 50% of the backlog applies to the next 12 months and 70% to the next 24 months. Planet Labs estimates that executing contracts already in backlog could generate more than $400 million in revenues over the next four quarters, excluding new business and renewals. Management added that the company is confident it can sustain “high growth rates in future years,” supported by near-term visibility and pipeline strength.
Planet Labs is also expanding capacity and advancing its satellite roadmap to support this opportunity. The company recently opened its Berlin manufacturing facility, which is expected to produce Pelican satellites and eventually scale to as many as 60 satellites per year. It recently launched the Pelican-12 satellite into orbit.
Before that, Planet Labs announced the launch of 20 satellites, which include a Google Project Suncatcher prototype, Tanager-2 and 18 SuperDoves. Suncatcher satellite will test Google’s Tensor Processing Units in space for the first time.
Planet Labs PBC Revenue (Quarterly)
Planet Labs PBC revenue-quarterly | Planet Labs PBC Quote
Planet Labs is accelerating Owl, its upcoming next-generation monitoring satellite. Owl is expected to upgrade Planet Labs' monitoring capabilities from 3-meter to 1-meter-class resolution while providing roughly 10 times more data at about 10 times the speed, added management.
Financial strength provides another competitive advantage. Planet Labs exited the second quarter of fiscal 2027 with approximately $865 million in cash, cash equivalents and short-term investments, up more than 200% year over year. This increase was driven by positive free cash flow and proceeds from capital transactions over the past year.
Planet Labs also has its fair share of challenges. Quarterly performance will remain uneven owing to the timing of satellite deliveries. Sweden’s satellite handover pulled revenues into the fiscal second quarter from the fiscal third quarter. Fiscal third-quarter guidance of $101-$105 million therefore implies a sequential revenue decline, alongside an expected adjusted EBITDA loss of $1-$6 million.
Growth also requires substantial investment. Planet Labs spent about $29 million in capital expenditures in the fiscal second quarter and expects fiscal 2027 capex of $100-$115 million. Management expects capex to increase in future quarters as it plans to channel spending toward manufacturing expansion in San Francisco and Berlin, supply-chain resiliency and next-generation satellite fleets.
Moreover, the increasing competition in the Earth observation space leaves less room for execution missteps. New satellites and AI offerings must deliver commercially, not merely meet development milestones.
The Case for BlackSky
BlackSky is gaining momentum from rising demand for real-time geospatial intelligence and its expanding Gen-3 satellite constellation. Its vertically integrated platform combines high-resolution Gen-3 satellite imagery, low-latency delivery and real-time AI insights through its Spectra platform to address mission-critical national security requirements.
The company's second-quarter 2026 revenues increased 50% year over year to $33.3 million, supported by space-based intelligence and AI services business.
On the August earnings call, BlackSky noted that it has a pipeline of more than 20 Gen-3 satellites underway and is on track to have eight Gen-3 satellites in orbit by the end of the year. The company is on track for an on-time delivery of its first sovereign Gen-3 satellite in 2026. In September, the company announced that it “collected and processed first-light imagery” from the fifth Gen-3 satellite in less than 20 hours after liftoff, underscoring rapid commissioning capabilities.
The company expects rapid growth driven by strong backlog and improving visibility from multi-year subscription contracts for its space-based intelligence and AI services. In the last reported quarter, Space-based intelligence and AI services revenues reached $24.5 million, increasing 50% sequentially.
BlackSky's subscription business is also improving profitability. Second-quarter adjusted EBITDA reached $4.7 million, translating into a 14.2% margin. Its imagery and AI subscription business achieved an approximately $100 million annualized revenue run rate, creating a stronger recurring revenue foundation.
BlackSky Technology Inc. Revenue (Quarterly)
BlackSky Technology Inc. revenue-quarterly | BlackSky Technology Inc. Quote
The company continues to strengthen its international contract portfolio. International subscription revenues surged 150% year over year, highlighting growing demand from overseas government customers. On the last earnings call, the company noted that it had secured up to $200 million in bookings year to date, while multi-year international contracts for space-based intelligence subscriptions represented more than 80% of total funded backlog.
In October, BlackSky secured a six-figure Gen-3 on-Demand pilot imagery services agreement with a new international intelligence customer. It also expanded its partnership with HEO through a seven-figure annual contract extension for non-Earth imaging services, incorporating Gen-3 capabilities. In September, BlackSky announced that its Gen-3 satellites will be part of a 50-satellite constellation developed under a $1 billion investment involving Marlan Space, Loft Orbital, Mistral AI, along with organizations in the UAE and France.
The company ended second-quarter 2026 with $244.1 million in cash and cash equivalents, restricted cash and short-term investments. BKSY had more than $325 million in total liquidity, following a $150 million ATM raise.
Nevertheless, BlackSky faces challenges. Its smaller revenue base and substantial exposure to defense and intelligence spending increase sensitivity to government procurement cycles. Increasing capex is another concern. Capital expenditures for 2026 are expected to be between $50 million and $60 million.
BlackSky reaffirmed its 2026 revenue guidance of $130 million to $150 million and adjusted EBITDA outlook of $12 million to $24 million. However, achieving sustained growth hinges on additional Gen-3 deployment, contract execution and successful commercialization of newer technologies.
Price Performance & Valuations of PL & BKSY
Year to date, PL and BKSY are down 30.4% and 7.4%, respectively.
Image Source: Zacks Investment Research
PL is trading at a forward price-to-sales multiple of 9.25X, higher than BKSY’s 3.61X.
Image Source: Zacks Investment Research
How Do the Consensus Estimates Compare for PL & BKSY?
Analysts have upped their earnings estimates for PL by 28.6% for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
Estimates have been unchanged for BKSY’s bottom line in the same period.
Image Source: Zacks Investment Research
PL or BKSY: Which Is a Better Pick
Both PL and BKSY carry a Zacks Rank #3 (Hold) at present.
Planet Labs' financial flexibility, broader customer applications and sizeable backlog give it an edge over BlackSky for investors seeking exposure to the evolving space economy.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.