Planet Labs PBC (NYSE:PL) delivered a strong fiscal first-quarter 2027 performance that prompted analysts to raise expectations for the satellite imaging company, but investors looked past the upbeat results on Friday, sending the stock sharply lower amid dilution concerns and a broader selloff in space stocks.
Wall Street analysts turned more constructive following the earnings report, with both Wedbush and Needham highlighting accelerating revenue growth, expanding backlog, and increasing demand from defense customers.
Planet Labs reported first-quarter revenue of $94.2 million, up 42% from a year earlier and ahead of the $90 million consensus estimate.
Geopolitical Tensions Accelerate Defense Sales According to Needham analyst Ryan Koontz, Planet Labs reported its strongest revenue growth in 12 quarters, driven by sustained momentum in the Europe, Middle East, and Africa (EMEA) region, where revenue increased 88% year over year, and in its Defense and Intelligence segment, which grew 68% year over year.
The performance reflects rising demand for sovereign Earth observation (EO) data amid escalating geopolitical tensions.
