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Planet Labs PBC
$31.38
-$0.23 (-0.73%)
Mkt Cap: $10.45B
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Sovereign Growth and AI Scaling: Planet Reaches Annual Profitability (PL Q4 2026 Earnings Call)

By Dr. Graph | Updated on May 31, 2026 | earnings

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Planet Labs PBC delivered record fiscal year 2026 revenue and its first annual adjusted EBITDA profit, propelled by sovereign contracts and AI scaling.

Record Revenues and First Profitable Year Redefine the Financial Baseline

The company generated record fiscal year 2026 revenue of $307.7 million, representing a 26% year-over-year increase driven by government client demand. This top-line expansion enabled the company to achieve its first annual adjusted EBITDA profit of $15.5 million.

Robust Outlook and Backlog Growth Support Higher Growth Expectations

Ashley Johnson stated: "Given the strength of our backlog and our robust pipeline, we have significant visibility into our continued revenue growth." The company expects full-year revenue to scale to between $415.0 million and $440.0 million, representing a 39% midpoint growth rate.

Sovereign Space Demand and Rapid AI Innovations Scale Global Segment Growth

The Defense and Intelligence sector led segment performance by growing more than 50% year over year. Regional strength was led by EMEA, which achieved 48% year-over-year revenue expansion. The company capitalized on this momentum by signing a €240,000,000 satellite services agreement funded by Germany.

On the technology front, the integration of Bedrock Research enabled the company to stand up 600 new monitoring sites within a three-hour window. Additionally, Planet Labs expanded its NVIDIA collaboration to build a GPU-native AI engine. This collaboration aims to achieve a 100-fold speedup in ground data processing.

Technical Research Collaborations and Geopolitical Needs Drive Customer Adoption

During the Q&A session, Cantor Fitzgerald analyst Colin Canfield questioned the timeline of key technology partnerships. Will Marshall explained that the Google SunCatcher project is an R&D partnership testing TPUs in space for orbital compute. Ashley Johnson added that the Google project is recognized as a contra research and development expense.

Responding to Needham & Company analyst Ryan Koontz, Will Marshall noted that shifting geopolitical dynamics drive massive demand for sovereign systems. Furthermore, in response to Craig-Hallum Capital Group analyst Jeff Van Rhee, Will Marshall explained that AI will democratize access by allowing nontechnical users to build bespoke applications.

Disclaimer: This report is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research or consult a qualified professional before investing. Past performance is not indicative of future results.

Frequently Asked Questions

What was Planet Labs' ending backlog at the close of fiscal year 2026?
The company finished the fiscal year with a record ending backlog of $900 million, which represents a 79% increase compared to the previous year.
How much free cash flow did the company generate during the fiscal year?
Planet Labs delivered positive free cash flow of $52.9 million for the full fiscal year, marking its first annual cash flow positive milestone.
What is the scale of the company's remaining performance obligations?
Remaining performance obligations reached approximately $852.4 million at the end of the year, representing a 106% expansion year over year.

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