Planet Labs Earnings Fall After Stock Offering
Planet Labs earnings showed record Q1 revenue and raised guidance, but a disclosed $1.5B stock offering prompted investor selling and a share drop.
KEY TAKEAWAYS
- Reported record Q1 revenue of $94.2M, up 42% y/y, and raised full-year revenue outlook.
- Filed a prospectus for up to $1.5B stock offering and shares declined amid sector weakness.
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On June 4, 2026, Planet Labs reported record first-quarter revenue and raised its full-year outlook, but shares declined after management disclosed a planned common-stock offering amid broader weakness in space-related stocks.
Record Quarter and Raised Outlook
Planet Labs reported fiscal first-quarter 2027 revenue of $94.2 million, a 42% increase year over year, with earnings per share of -$0.03. Revenue from its defense and intelligence segment grew more than 65% year over year. The company had a backlog of about $906 million and remaining performance obligations exceeding $816 million, supporting management’s confidence in sustained contract demand.
The company raised its full-year fiscal 2027 revenue guidance to a range of $425 million to $441 million and forecast second-quarter revenue between $102 million and $107 million. It projected non-GAAP gross margins of 52% to 55% for the second quarter and 52% to 54% for the full year. Adjusted EBITDA was expected to range from breakeven to $5 million in the second quarter and breakeven to $10 million for the year. Capital expenditures were guided to $21 million to $27 million in the second quarter and $80 million to $95 million for the full year.
Stock Offering and Funding Plans
Planet Labs filed a prospectus for a common-stock offering of up to $1.5 billion. The disclosure coincided with investor selling that pressured the shares following the earnings announcement. The company ended the quarter with approximately $731 million in cash equivalents and short-term investments.
Management said planned capital spending would support next-generation satellites, expanded manufacturing capacity in San Francisco and Berlin, AI-powered solutions, and global sales and marketing. The company maintained its expectation to be free-cash-flow positive on an annual basis in fiscal 2027. These capital priorities align with the company’s backlog and its focus on defense and intelligence contracts.
The company’s investor-relations events page listed the fiscal first-quarter 2027 earnings call for June 4, 2026.
