Planet Labs Stock Surges After Record Revenue and First-Ever Quarterly Profit

Shares of Planet Labs PBC (PL) surged in pre-market trading after the company reported record fiscal second-quarter earnings that significantly surpassed analyst expectations and marked its first profitable quarter on a non-GAAP basis since going public.

Record Quarter Drives Profitability

Planet Labs announced its fiscal Q2 2027 results after Thursday's market close, revealing a substantial beat on key financial metrics. The performance was highlighted by the company's first-ever non-GAAP profitable quarter.

Key figures from the report include:

• Revenue: A record $116.1 million, representing a 58% year-over-year increase and coming in about 11% above the consensus estimate of $104.5 million.
• Adjusted EPS: $0.02, a significant surprise compared to Wall Street's forecast for a loss of $0.02 per share.
• Adjusted EBITDA: $13.9 million, far exceeding analyst expectations of approximately $2 million.

The company also reported a net dollar retention rate of 109%, indicating strong revenue growth from its existing customer base.

Defense Segment and Guidance in Focus

Ad

The strong quarterly results were largely driven by powerful momentum in Planet's defense and intelligence segment, which grew over 90% year-over-year and accounted for roughly 70% of total sales. The company also announced a new seven-figure, one-year contract with an undisclosed European defense and intelligence client.

Looking ahead, management raised its full-year fiscal 2027 revenue guidance to a range of $430–$441 million, implying 40–43% annual growth. Planet also set its first-ever target for full-year adjusted EBITDA profitability.

However, the company's third-quarter revenue guidance of $101–$105 million came in well below the approximately $118 million analysts had modeled. The company also expects to return to an adjusted EBITDA loss in Q3.

Market Reaction

The stock's reaction was volatile. Shares initially fell about 8% in regular trading on Thursday as investors focused on the weaker-than-expected Q3 forecast.

Sentiment shifted overnight, and by Friday's pre-market session, the stock had reversed course to surge 14.1% to $20.94. The market appeared to weigh the historic Q2 performance, the milestone of non-GAAP profitability, and the upgraded full-year outlook more heavily than the near-term guidance.