Planet Labs PBC (NYSE: PL), a leading provider of Earth-imaging data and geospatial analytics, has shed 11.9% over the past three months, underperforming its industry, sector, and the broader S&P 500.
The company operates the largest fleet of Earth-observation satellites globally, delivering imagery and analytics to governments and large enterprises through a cloud-based platform.
By contrast, peer Rocket Lab (NASDAQ: RKLB) surged 47.7% over the same three-month period, while fellow competitor BlackSky Technology (NYSE: BKSY) declined 6.7%.
Despite weak price performance, the stock continues to trade at a significant valuation premium, with a current price-to-sales multiple of 22.76 against an industry average of just 3.15.
That multiple also sits well above the stock’s own three-year median of 3.8, making PL expensive relative to historical norms, even as the share price retreats.
On the operational side, Planet Labs closed the first quarter of fiscal 2027 with its backlog surging 72% year over year to more than $906 million, providing meaningful revenue visibility heading into the remainder of the fiscal year.
Management has projected fiscal 2027 revenues of between $425 million and $441 million, representing substantial growth from prior periods according to company guidance.
The Zacks Consensus Estimate points to a 41.9% year-over-year revenue increase for fiscal 2027, though the same estimates project a steep 75% year-over-year decline in earnings for the same period.
Looking further ahead, fiscal 2028 consensus estimates point to 32.2% revenue growth and a 138.1% increase in earnings, suggesting analysts expect the profitability picture to improve meaningfully beyond the near term.
Planet Labs generates revenue through fixed-price subscription agreements and usage-based contracts, with growth increasingly driven by large government and defense deals that offer greater long-term revenue stability.
Management has identified AI-powered analytics, originally built for government customers, as a key driver of new commercial opportunities spanning supply chain monitoring, insurance risk assessment, financial analysis, energy management, and agriculture.
However, the company has posted losses for five consecutive years and is expected to remain unprofitable through fiscal 2027, weighed down by heavy satellite infrastructure investment, elevated research and development costs, and high operating expenses.
For fiscal 2027, management expects a non-GAAP gross margin of 52% to 54% and adjusted EBITDA ranging from breakeven to a profit of $10 million, signaling that durable profitability remains a work in progress.
Returns on equity and invested capital continue to trail industry averages, and consensus earnings estimates for both fiscal 2027 and 2028 have moved lower over the past 30 days.
With a VGM Score of F, a Zacks Rank of 4 (Sell), a premium valuation, and near-term earnings pressure mounting, analysts currently advise caution on PL shares despite the company’s long-term growth narrative.
