Planet Labs PBC (PL) closed at $44.35 on Friday, a 4.3% gain, marking a strong finish ahead of the Memorial Day holiday weekend. The satellite-imagery firm's shares rose approximately 6.6% for the week, climbing from a May 15 close of $41.62, according to market data.
The New York Stock Exchange will be closed on Monday, May 25, for Memorial Day, resuming regular trading on Tuesday. The shortened trading week leaves investors with limited time to reposition ahead of Planet Labs' fiscal first-quarter 2027 earnings report, scheduled for release after the market close on June 4.
Planet's recent gains outpaced the broader market. The SPDR S&P 500 ETF (SPY) added 0.4% on Friday, while the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, also rose 0.4%. The iShares Russell 2000 ETF (IWM), a gauge for small-cap stocks, gained 0.9%.
The company has been buoyed by optimism around accelerating government contracts and the growing utility of artificial intelligence in satellite imagery analysis. Bulls are betting that these trends will translate into strong financial results when the company reports next month.
Planet's most recent annual results set new records. For the fiscal fourth quarter ended January 31, the company posted revenue of $86.8 million, a 41% year-over-year increase. Full-year revenue rose to $307.7 million, up 26%. Backlog reached approximately $900.4 million as of January 31, compared to $503.7 million a year earlier.
CEO Will Marshall highlighted "strong momentum in satellite services" in the company's March earnings call, citing work in Sweden. CFO Ashley Johnson noted that Planet achieved "its first fiscal year of Adjusted EBITDA and free cash flow profitability." Adjusted EBITDA excludes interest, taxes, depreciation, and other items.
On May 14, Planet released first-light images from its newest Pelican satellites, including imagery from the Swedish Armed Forces' first sovereign satellite. Marshall said the three new Pelicans bring "more capacity and a higher revisit rate." The company now has nine high-resolution, AI-enabled Pelicans in orbit.
Planet is also securing smaller government contracts in Europe. Its Sinergise unit won a two-year, seven-figure contract with the Czech Republic's State Agricultural Intervention Fund for satellite imagery and AI-based farm monitoring. A separate two-year, seven-figure deal with Greece is tied to the country's National Satellite Space Project. "It's moving from manual, reactive inspections to proactive, AI-enabled operations," said Planet executive Diego Vanelli regarding the Czech contract.
Competitors also saw gains this week. BlackSky (BKSY) rose 7.2% on Friday, and Spire Global (SPIR) climbed 10.1%, indicating broad interest in the space intelligence sector. BlackSky announced in May it had secured a seven-figure government subscription deal for Gen-2 mission work.
Wall Street is divided on Planet's prospects. Wedbush analyst Daniel Ives raised his price target to $50 from $40, maintaining an Outperform rating. However, New Street Research initiated coverage with a Sell rating and a $28 target, citing valuation concerns after the recent rally.
Risks remain. The stock's recent run-up means the upcoming earnings report must demonstrate that government demand is boosting revenue without significantly pressuring margins. Planet guided first-quarter revenue between $87 million and $91 million, with an adjusted EBITDA loss of $3 million to $6 million. Capital spending for fiscal 2027 is set at $80 million to $95 million. Any shortfall in growth, profitability, or cash flow could trigger selling pressure.
With a short trading week ahead, attention will turn to Planet Labs as it approaches its June 4 earnings report. Investors will be watching for updates on Pelican launches, AI product developments, and progress in converting the substantial backlog into revenue.
