Planet Labs 2026 Q2 Earnings Improved Losses Amid 20.1% Revenue Growth

Planet Labs (PL) reported its fiscal 2026 Q2 earnings on Sep 08th, 2025. The company delivered better-than-expected results, with revenue rising 20.1% to $73.39 million and losses narrowing by 41.6% year-over-year. The earnings beat expectations with a marked reduction in net loss and improved gross margin, while management provided cautiously optimistic guidance for the remainder of the year.

Revenue
Planet Labs reported total revenue of $73.39 million for the second quarter of 2026, reflecting a 20.1% year-over-year increase. Defense & Intelligence emerged as the largest revenue contributor with $41.91 million, followed by Civil Government at $16.43 million and Commercial at $15.05 million. The company’s broad revenue base across key government and defense markets supported its growth in the quarter.

Earnings/Net Income
Planet Labs narrowed its losses significantly in Q2 2026, reducing its net loss to $22.59 million from $38.67 million in the prior-year period—a 41.6% decline. On a per-share basis, the company posted a loss of $0.07, an improvement of 46.2% compared to a $0.13 loss per share in Q2 2025. Despite this progress, the company continues to report annual losses in its Q2 period for the fifth consecutive year, highlighting ongoing financial challenges.

Price Action
Planet Labs’ stock experienced a strong rally in the period following the earnings report, surging 25.37% on the latest trading day and 36.25% for the week. The stock has posted an impressive 52.85% gain month-to-date, indicating strong investor confidence amid the improved results.

Post-Earnings Price Action Review
William Marshall, CEO and Co-Founder, highlighted Planet Labs’ strong performance in Q2, noting a 20% year-over-year revenue increase to $73.4 million and an improved gross margin of 61%. The company achieved three consecutive quarters of adjusted EBITDA profitability and free cash flow positivity. Marshall emphasized strategic progress in transitioning from raw data to AI-enabled solutions, particularly in defense and intelligence contracts with partners such as JSAT and Germany. The company’s backlog grew by 245% year-over-year, and leadership expressed confidence in FY 2027 growth as it expands AI integration and monetizes new offerings such as hyperspectral imaging and maritime domain awareness.

Guidance
Looking ahead, Planet Labs expects Q3 2026 revenue to range between $71 million and $74 million, with a non-GAAP gross margin of 55%-57% and adjusted EBITDA between -$4 million and breakeven. For the full year, the company forecasts revenue between $281 million and $289 million, a non-GAAP gross margin of 55%-57%, and an adjusted EBITDA loss of between -$7 million and breakeven. Capital expenditures are anticipated to fall between $65 million and $75 million, with the company remaining free cash flow positive for the year as it invests in satellite systems and operational efficiency.

Additional News
On the Nigerian front, the country’s political and economic landscape remained volatile in the week preceding Planet Labs’ earnings report. In Niger State, police arrested 30 suspected thugs during a Malud procession, highlighting ongoing security concerns. Meanwhile, Lagos experienced traffic gridlock as protesters blocked the Third Mainland Bridge. On the policy front, Nigeria’s Federal Government and Dangote Group extended discussions on fuel pricing and energy reform, with the opposition Trade Union Congress (TUC) warning of potential strikes over the newly imposed 5% fuel surcharge. The budget office emphasized infrastructure and foreign exchange reform as key pillars of President Tinubu’s economic strategy.