Planet Labs (PL) Stock: Plunges as Q1 Revenue Jumps 42% and AI Push Grows

TLDR

• Planet Labs stock drops despite 42% Q1 revenue growth and AI gains
• PL falls overnight as wider Q1 loss offsets record revenue growth
• Planet Labs posts record Q1 revenue but stock slips after results
• PL stock drops as AI satellite push grows alongside wider net loss
• Planet Labs backlog jumps 72% as stock falls after Q1 earnings

Planet Labs (PL) fell overnight despite reporting record quarterly revenue and stronger backlog growth. The stock closed at $43.53, up 0.93%, before dropping to $41.77, down 4.04%, after the update. The move showed pressure on the stock, even as the company posted higher sales and expanded AI-linked satellite work.

Planet Labs PBC, PL

Planet Labs Reports Record Revenue and Wider Loss

Planet Labs reported first-quarter fiscal 2027 revenue of $94.2 million for the period ended April 30, 2026. Revenue rose 42% from the prior year, supported by stronger execution across sales and delivery teams. The company also ended the quarter with 99% recurring annual contract value.

Planet Labs posted a wider net loss of $138.9 million during the quarter. The loss compared with $12.6 million in the same quarter of fiscal 2026. Moreover, the company linked much of the increase to a $106.5 million warrant liability revaluation loss.

The company also reported an adjusted EBITDA loss of $1.0 million for the quarter. In addition, free cash flow stood at negative $2.5 million, while operating cash flow reached $15.4 million. Planet ended the quarter with $730.8 million in cash, cash equivalents, and short-term investments.

Government Contracts Support Backlog Growth

Planet Labs said backlog increased 72% year over year to more than $906 million. The figure gave the company stronger visibility across future revenue streams. Besides, new and renewed contracts showed continued demand from government and defense customers.

During the quarter, Planet signed an eight-figure, one-year contract with an international defense and intelligence customer. The deal gave the customer access to high-resolution tasking capacity and analytic tools. The company also secured National Geospatial-Intelligence Agency awards for maritime surveillance and crisis response work.

Planet received a six-month, $7.5 million renewal from the U.S. Navy. The contract supports vessel detection and monitoring across key Pacific areas. The company also signed agreements with the Greek government, Czech Paying Agency, Scottish Government, and other partners.

AI Satellite Push Expands Product Roadmap

Planet Labs continued expanding its satellite network and AI product strategy during the quarter. In May, the company launched three additional AI-enabled Pelican satellites aboard a SpaceX vehicle. The launch brought its high-resolution Pelican satellites on orbit to nine.

The mission also included Sweden’s first sovereign reconnaissance satellite. Planet said the satellite launched just over four months after contract signing. The milestone highlighted the company’s faster delivery cycle for defense-linked satellite programs.

Planet also launched a private beta AI application for natural language satellite data search. The tool aims to help users search Planet’s archive, run time-series analysis, and generate reports. Meanwhile, SuperRes and Pelican-11 added further support to Planet’s high-resolution imaging roadmap.

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