Why Planet Labs Stock Just Rocketed

• Planet Labs bushed connected net past night.

• The spy outer relation is hitting its stride, and generating accordant escaped currency flow.

• 10 stocks we similar amended than Planet Labs PBC ›

Earth reflection outer institution Planet Labs (NYSE: PL) banal rocketed 32.5% done 11:10 a.m. ET Thursday morning, aft beating expert forecasts for some income and net past night.

Heading into the fiscal Q3 2026 report, analysts weren't optimistic, expecting Planet to suffer $0.04 per stock connected $72 cardinal successful sales. Instead, Planet broke adjacent -- zero cents lost, zero cents earned -- and scored $81 cardinal successful revenue.

Planet Labs grew its income 33% twelvemonth implicit twelvemonth -- and tripled its backlog, suggesting adjacent much gross maturation lies ahead. "We're seeing beardown traction with our AI-enabled planetary monitoring solutions," said CEO Will Marshall, and the company's pivot distant from biology subject activities and toward subject and information contracts is bearing fruit, arsenic "demonstrated by our caller grant nether the NGA's Luno B programme and enlargement with NATO."

Best of all, arsenic CFO Ashley Johnson pointed out, Planet Labs conscionable reported its "third consecutive 4th of affirmative escaped currency flow."

I don't cognize astir you, but this is the fig I'm focused connected astatine Planet Labs. GAAP-unprofitability notwithstanding, twelvemonth to date, Planet has present generated $58.6 cardinal successful affirmative escaped currency flow, oregon $55.2 cardinal if you number "capitalized internal-use software" arsenic a superior disbursal (which I do). Annualize that number, and the company's connected people to study its first-ever twelvemonth of affirmative escaped currency flow, possibly arsenic overmuch arsenic $73.6 million.

Is that capable to marque Planet Labs banal a buy?

Valued astatine $5.25 cardinal today, it gives the banal a price-to-free currency travel ratio of astir 71. Expensive? Yes. But assuming FCF continues increasing adjacent faster than the 33% gait of income growth, past yes, I judge Planet banal whitethorn beryllium a buy.

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