SAN FRANCISCO, September 3, 2026, 15:30 (EDT) — Shares of Planet Labs slid 9.5% after the satellite imagery company revealed a new contract that represents a maximum of 1.1% of its total backlog.
- At 15:30 EDT, Planet Labs shares were down 9.5% at $18.095.
- A newly announced defense contract, lasting one year, was revealed as a seven-figure agreement.
- Thursday’s market close will be followed by the release of fiscal second-quarter results.
Shares of Planet Labs PBC NYSE:PL dropped 9.5% to $18.095 on Thursday. Trading volume totaled 20.8 million shares as of 15:30 EDT. The price hovered close to its session low of $17.835 Yahoo Finance.
The company disclosed a European defense contract with a one-year term prior to the market open. The value, which remains confidential, ranges from $1 million up to $9.99 million. At the upper end, that figure represents just 1.1% of Planet’s most recently reported backlog.
Thursday’s earnings report represents the more significant test due to its scale. Investors are looking for proof that a multitude of smaller contracts can drive growth and cash flow. A single deal does not answer this.
Planet shares lost ground through the session
$18.095 · −9.5% versus Wednesday’s $19.99 close
The contract covers Planet Mosaics along with professional operational planning services. The client was not identified. “growing demand for our foundational geospatial data and expert support services,” Planet’s head of defense Jon Powers said Planet release.
Planet is set to announce fiscal second-quarter earnings following the market close on Thursday. The earnings call begins at 17:00 EDT Planet investor events. The company had earlier projected revenue between $102 million and $107 million.
The reported fiscal Q2 guide
Quarter ended July 31, 2026
The midpoint of the revenue forecast stands at $104.5 million, representing a 10.9% increase over the first quarter. Guidance for adjusted EBITDA is set between break-even and a profit of $5 million.
The first quarter delivered solid fundamentals. Revenue climbed 42% to $94.2 million. Backlog was up 72% at $906.1 million, and free cash flow stood at negative $2.5 million SEC filing.
New contract is small beside reported backlog
“Seven figures” defines a range, not a precise contract value.
Backlog does not represent assured revenue. As of April 30, Planet listed $90.0 million in cancelable contract value. The company anticipated recognizing approximately 40% of its overall backlog in the following 12 months.
President and CFO Ashley Johnson said the backlog offers “excellent visibility and predictability into our future growth.” That visibility faces a test with Thursday’s report. Investors will be able to compare new bookings to recognized revenue.
Berenberg initiated coverage on Wednesday, assigning a buy rating and setting a $25 price target MarketScreener. The target was 38.2% higher than the 15:30 price on Thursday. This represents the opinion of a single firm, rather than a consensus.
One analyst target versus the current price
Scale runs from $0 to $30 per share
Risks: There is potential for government awards to face delays, cancellations, or gradual recognition. Execution risk arises from satellite launches and capital investments. A disappointing outlook may further pressure the stock’s fluctuating valuation.
Customer concentration is a factor as well. Two clients accounted for 15% and 11% of revenue in the first quarter. The company projected capital expenditures between $21 million and $27 million for the second quarter.
Planet concluded April holding $730.8 million in cash and short-term investments, providing a buffer that eases immediate funding needs. Investors will look to the post-market report for signs that contract momentum is translating into sustained positive cash flow.
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