What Makes Planet Labs Stock A Buy Today?
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Planet Labs (PL) stock has lost 66.4% since May 4, 2026, while the S&P 500 gained 5.3%. Anyone thinking of buying wants to know whether the business has broken. Planet has not shrunk, though. It reported record revenue of $116 million for fiscal Q2 2027, up 58.1% from a year earlier. The question for a buyer is how much of that pace Planet can keep.
How Much Of Planet’s Growth Is Already Booked?
Management estimated Planet had about $815 million of revenue in its backlog at the end of fiscal Q2 2027. Executing on those contracts could bring in over $400 million of revenue over the next four quarters, management said. That figure is more than the $378 million Planet reported over the last twelve months, before any new deals.
New awards keep arriving as well. Planet won an $8 million contract with the National Geospatial-Intelligence Agency, and management said it was the only vendor considered.
The catch is how that revenue arrives. Management said the quarter’s outperformance came mainly from handing over Planet’s first Pelican satellite to the Swedish Armed Forces. As these satellite deals grow, management expects the share of revenue booked on delivery to vary from quarter to quarter. Management expects fiscal Q3 2027 revenue of $101 million to $105 million, coming in below the $116 million Planet just reported. At the midpoint, that would still be about 27% growth from a year earlier, but well below the pace of Q2. Management said the handover’s timing shifted some revenue from Q3 into Q2, and it raised the low end of its fiscal 2027 revenue guide to $430 million to $441 million. The backlog gives Planet visibility, yet its quarters are unlikely to rise in a straight line.
Is Planet Making Money Yet?
Not on its reported figures. Over the twelve months ended July 31, 2026, Planet’s operating loss equaled 27.2% of its sales. By comparison, the S&P 500 earned an operating profit equal to 18.6% of its sales.
Cash looks better, as Planet produced $18.8 million of free cash flow over those twelve months. Management is aiming for a profit on its own adjusted EBITDA measure of $3 million to $10 million for fiscal 2027. Yet it expects an adjusted EBITDA loss of $1 million to $6 million in fiscal Q3 2027, as it keeps investing to grow.
Buyers pay 12.3 times sales for Planet stock, against 3.3 times for the S&P 500. A price-to-earnings ratio is not meaningful because Planet has a loss. That price comes from Planet’s growth. Planet has not yet turned that growth into reported profit over a full year, and that profit appears to be what buyers at this price are counting on.
Planet’s Falls In Shocks And Its Share Sales
In each of four recent market shocks, Planet stock fell further than the S&P 500. During the 2025 US tariff shock, Planet fell 47% while the S&P 500 fell 19%. In the 2023 five percent yield shock, Planet fell 39% against 9.5% for the index. In the 2023 SVB regional banking crisis, Planet fell 34% against 6.7%. Even in the 2022 inflation shock, the closest of the four, Planet fell 36% against 24%.
Planet has also been selling new shares. In fiscal Q2 2027, the company raised about $120 million by selling stock on the market at an average net price of $31.96 per share. Management said the raise was for balance sheet flexibility. Planet ended the quarter with $865 million of cash and short-term investments against $499 million of debt.
Anyone owning Planet at today’s price is counting on the backlog to keep turning into revenue while losses narrow. Planet is expected to report fiscal Q3 2027 results in December 2026. Revenue against management’s guide is the number to watch, along with adjusted EBITDA.
Still Holding Planet Labs PBC After The Drop?
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