Planet Labs PBC (NYSE: PL) experienced a mixed end to the trading week as shares declined on Friday, giving back some of the substantial gains recorded earlier in the week. Despite the daily drop, the satellite imagery company posted a solid weekly performance, buoyed by investor enthusiasm over new satellite deployments and a significant European contract.
The stock closed at $41.62 on Friday, a decline of 3.3% after trading in a range of $40.54 to $43.18. However, the stock managed to finish the week with a gain of approximately 6.6%, driven by a 7.2% surge on Monday and a 5.7% advance on Thursday. According to MarketScreener, Planet Labs shares have surged 111% year-to-date through Friday's close, reflecting strong investor sentiment.
Wedbush analyst Daniel Ives raised his price target on Planet Labs to $50 from $40, maintaining an Outperform rating. Ives highlighted the company's increasing exposure to defense spending, government contracts, and artificial intelligence (AI) technology as key drivers. The AI capabilities enable faster satellite data analysis and pattern recognition, which Ives believes will enhance Planet's competitiveness in defense and intelligence sectors. He also pointed to the company's growing satellite infrastructure and the potential for an "AI commercial flywheel" to drive further growth.
On Thursday, Planet announced the release of first images from its three newest Pelican satellites, which were launched on a SpaceX Falcon 9 rocket from Vandenberg Space Force Base in California on May 3. Among these is Sweden's first sovereign satellite, owned by the Swedish Armed Forces. CEO Will Marshall noted that the additional satellites provide "more capacity and a higher revisit rate," referring to the frequency at which the satellites can image the same location. Planet now operates nine AI-enabled, high-resolution Pelican satellites in orbit, with additional launches planned for 2026. Rear Admiral Anders Sundeman, Sweden's head of space, emphasized that the satellite gives Sweden a "sovereign means of identifying and analyzing threats globally."
Planet also secured a non-defense European contract this week through its Sinergise unit. The two-year deal, valued at seven figures, will deliver satellite imagery and AI analytics to the Czech Republic's State Agricultural Intervention Fund. The system will support agricultural payments and monitor approximately 25,000 agricultural holdings. Diego Vanelli, Planet's head of government sales for EMEA, said the contract shifts oversight "from manual, reactive inspections to proactive, AI-enabled" monitoring.
The broader space-data sector showed mixed performance on Friday. BlackSky (NYSE: BKSY) fell 9.3%, while Spire Global (NYSE: SPIR) rose 10.3%. BlackSky, which focuses on AI-powered real-time tactical intelligence for defense and security, continues to face a challenging market. Spire Global, which provides space-based data and analytics to both government and commercial customers, showed strength, indicating that the space-data sector is not moving uniformly.
Planet's fourth-quarter fiscal 2026 results, reported in March, remain a key backdrop. The company posted revenue of $86.8 million, up 41% year-over-year, and full-year revenue of $307.7 million. Adjusted EBITDA for fiscal 2026 was $15.5 million, excluding interest, taxes, depreciation, and amortization. However, the company reported a net loss of $246.9 million for the year, highlighting ongoing profitability challenges. Additionally, Planet's backlog of future revenue is subject to cancellation risks, particularly those tied to government funding. The company has noted that government cancellation clauses are beyond its control, potentially impacting the full realization of contract values.
Looking ahead, Planet's fiscal first-quarter 2027 results are scheduled for release after the market close on June 4. In the interim, Monday's trading session will likely hinge on whether investors view Friday's decline as a buying opportunity or a signal for caution. The broader market also faced headwinds, with the SPDR S&P 500 ETF (NYSE: SPY) down 1.2% and the Invesco QQQ Trust (NASDAQ: QQQ) declining 1.5% on Friday.
