Planet Labs (PL) Stock Forecast & Price Target

Planet Labs PBC exhibited strong financial performance in F3Q26, with total revenue increasing by 33% year-over-year to reach $81.3 million, significantly surpassing both company guidance and market expectations. The company's robust revenue growth was primarily driven by its Defense and Intelligence segment, which represented 61% of total revenue and experienced a remarkable 72% year-over-year increase. Additionally, Planet Labs reported a substantial rise in cash and short-term investments, reaching $678 million, highlighting its strong liquidity position and potential for continued expansion in a growing market driven by favorable trends in satellite capabilities and defense spending.

The financial outlook for Planet Labs PBC appears negative due to several troubling indicators. Despite a substantial year-over-year increase in total RPO and backlog, there was a sequential decline, suggesting potential weaknesses in customer acquisition and retention, particularly in the commercial sector impacted by agricultural seasonality and a focus shift towards larger accounts. Moreover, a significant drop in free cash flow and extended sales cycles, driven by a hesitance to embrace geospatial data among potential customers, raises concerns about the company's sustainable growth and product development capabilities.