Planet Labs reported a government-backed backlog of $734.5 million at the end of its latest quarter, representing a 216% increase year over year. The surge stems from multi-year agreements with defense and intelligence agencies for dedicated satellite capacity, high-resolution imaging services, and AI-powered analytics. These contracts now account for roughly 45% of total expected revenue over the next three fiscal years, providing visibility into cash flows and reducing reliance on commercial subscription sales.

In late December, Planet Labs successfully deployed two Pelican series satellites—Pelican-5 and Pelican-6—aboard a rideshare mission. Both platforms carry advanced neural-network processors for on-board image classification, enabling near-real-time detection of maritime vessels and terrain changes. Early-test imagery from Pelican-6 captured ground resolution finer than 0.5 meters, and preliminary processing times have been cut by 30%, underscoring the practical value of in-orbit AI workloads.

For the third quarter, Planet Labs delivered record revenue of $81 million, up 33% year over year and outperforming the consensus forecast of $72 million. The company narrowed its non-GAAP net loss to under $1 million ($0.00 per share), compared with an $8 million deficit in the comparable period a year earlier. Subscription services contributed 60% of quarterly sales, while product and hardware sales—chiefly satellite payloads—made up the remainder.

Institutional research desks have taken note of Planet Labs’ momentum. One leading Wall Street bank initiated coverage with a buy recommendation and a $19 per share target, citing the company’s strengthened pipeline of defense-sector awards. Meanwhile, a major equity strategist boosted her fair value estimate from $4.50 to $20, pointing to multi-year imagery contracts and accelerated AI integration as catalysts for higher margin expansion over the next two years.