Planet Labs: Buy The Pullback As Revenue Acceleration Takes Flight

Planet Labs is rated a buy with a $36 FY 2027 target, reflecting 14% upside and strong demand from global defense and intelligence sectors. PL posted 42% YoY revenue growth in Q1 2027, raised FY guidance to $425–441M, and maintains robust liquidity with $731M in cash and investments. Defense spending by NATO members and large government contracts, including satellite-as-a-service deals, are key catalysts for sustained growth and margin expansion. Risks include intense competition and backlog contracts with termination clauses, but PL’s backlog of $906M and recent pullback offer a compelling entry setup. Founded in 2010 by former NASA scientists, Planet Labs PBC ( PL ) is a satellite imagery and analytics company operating the world’s largest fleet of earth-imaging satellites, capturing earth data on a daily basis.