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How Investors Are Reacting To Planet Labs (PL) Revenue Jump, Free Cash Flow Turn, And Insider Sale

Simply Wall St · 5d ago
  • Planet Labs PBC recently reported strong quarterly results, including a 32% revenue increase and positive free cash flow, supported by new government contracts and an upgraded revenue outlook for fiscal 2026.
  • Co-founder Robert Schingler’s late-December US$1.4 million Rule 10b5-1 share sale, representing around 6% of his direct holdings, highlights insider portfolio diversification amid growing demand for Planet’s satellite data solutions.
  • We’ll now examine how the latest government contract wins and revenue momentum influence Planet Labs’ existing investment narrative and risk profile.

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Planet Labs PBC Investment Narrative Recap

To hold Planet Labs, you need to believe in long term demand for high cadence Earth imagery and analytics, and in the company’s ability to convert that demand into durable, higher value solution contracts. The recent share-price surge and Schingler’s pre planned US$1.4 million sale do not materially change the near term catalyst, which still centers on delivering against upgraded fiscal 2026 revenue guidance, or the key risk around high valuation paired with continued losses.

The most relevant recent development is Planet’s fiscal third quarter, where revenue grew 32% year on year to US$81.25 million and free cash flow turned positive, supported by new government and defense contracts. This combination of growth, cash discipline, and contract momentum is what many investors are watching most closely as they weigh the upside from scaling Pelican and broader AI enabled solutions against the risk of ongoing net losses and potential cash burn from future satellite investments.

Yet even with strong contract wins, investors should be aware that the current valuation leaves less room for...

Read the full narrative on Planet Labs PBC (it's free!)

Planet Labs PBC’s narrative projects $409.3 million revenue and $29.2 million earnings by 2028. This requires 17.8% yearly revenue growth and a $135.7 million earnings increase from $-106.5 million today.

Uncover how Planet Labs PBC's forecasts yield a $14.55 fair value, a 29% downside to its current price.

Exploring Other Perspectives

PL 1-Year Stock Price Chart
PL 1-Year Stock Price Chart

Ten fair value views from the Simply Wall St Community span roughly US$2.17 to US$22 per share, underlining how far apart individual expectations can be. Readers should weigh that spread against Planet’s current combination of rapid revenue growth, ongoing net losses, and a share price that already sits well above some professional fair value estimates, and seek out several contrasting viewpoints before forming a view.

Explore 10 other fair value estimates on Planet Labs PBC - why the stock might be worth as much as 8% more than the current price!

Build Your Own Planet Labs PBC Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.