Planet Labs reported third-quarter 2026 revenue of $81 million, representing a 33% year-over-year increase driven by expanded subscription demand for its daily Earth imagery services. The company’s shift to a Satellite Services model has unlocked capital efficiency, enabling rapid growth with minimal incremental hardware spending. At quarter end, remaining performance obligations jumped 216% year-over-year to $734.5 million, reflecting multi-year contracts signed across defense, agriculture and commercial mapping applications. This backlog provides high visibility into recurring revenues and supports the company’s aggressive expansion plans in new markets such as climate risk analytics and supply-chain monitoring.

Planet Labs has now delivered four consecutive quarters of positive adjusted EBITDA, with Q3 generating $5.6 million of EBITDA profit. Management reiterated guidance for positive free cash flow in fiscal 2026/27, driven by declining satellite deployment outlays and economies of scale in data processing infrastructure. The move toward capital-light growth reduces equity dilution risk and positions the company to fund continued R&D in machine-learning analytics without need for large equity raises. Investors will be watching margins closely as subscription services ramp and unit economics improve under the new service model.

In early January 2026, Wedbush Securities increased its price target by 40% following the award of a nine-figure multi-year agreement with the Swedish Armed Forces. That contract, which includes satellite tasking and data delivery for real-time defense surveillance, ignited a near-12% jump in share trading and underscored growing international demand for Planet Labs’ intelligence products. Wedbush analysts cited both the deal’s size and the company’s expanding addressable market in government budgets as key drivers for maintaining an outperform rating. This agreement follows earlier wins with NATO and the German government, reinforcing the role of stable, long-term public-sector partnerships in underpinning revenue visibility.