Planet Labs (PL) Shares Surge Over 50% Following Q1 Beat: What's Going On?

Shares of Planet Labs PBC PL soared 49.9% to $5.97 Thursday morning after the Earth imaging company reported stronger-than-expected first-quarter results and raised its fiscal 2026 revenue guidance.

What To Know: The company posted first-quarter revenue of $66.3 million, beating Wall Street's $62.3 million estimate and marking a 10% year-over-year increase.

Non-GAAP gross margin improved to 59%, and the net loss narrowed to $12.6 million from $29.3 million a year earlier. The company also achieved its first-ever quarter of positive free cash flow and recorded $1.2 million in adjusted EBITDA profit.

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Planet highlighted strong recurring revenue (97% of annual contract value) and announced multiple high-profile contracts, including an eight-figure deal with a European defense client and new partnerships with California’s Air Resource Board and the German government.

Looking ahead, Planet expects second-quarter revenue of $65–$67 million and raised its full-year guidance to $265–$280 million.

Although below the $328.8 million consensus estimate, the forecast reflects continued growth momentum as the company expands its AI-powered analytics and satellite services. CEO Will Marshall cited strong demand for global insights and AI solutions as key drivers of growth.

What Else: Wedbush’s Dan Ives maintained an Outperform rating and increased the price target from $5 to $7. Additionally, Needham’s Ryan Koontz reiterated a Buy rating for the company, keeping the price target at $8.

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How To Buy PL Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Planet Labs’ case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, PL has a 52-week high of $6.71 and a 52-week low of $1.73.

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