Planet Labs (PL) Stock Forecast & Price Target

Planet Labs PBC has demonstrated significant growth, with total remaining performance obligations (RPO) increasing by 371% year-over-year to $672 million, and current RPO (cRPO) rising by 86% year-over-year to $222 million, driven by recent contracts. The company's total revenue for F3Q26 rose by 33% year-over-year to $81.3 million, surpassing both company guidance and Wall Street estimates, largely due to robust performance in its data subscription, solutions, and satellite services sectors, particularly within the Defense and Intelligence segment which grew by 72% year-over-year. Furthermore, the strong financial position is evidenced by a substantial increase in cash and equivalents, totaling $678 million, which positions Planet Labs favorably for future growth amidst expanding global opportunities and effective execution strategies.

Planet Labs PBC has experienced significant year-over-year growth in its total Remaining Performance Obligations (RPO), which reached $672.5 million, but this figure reflects a quarterly decline of 3%, indicating potential weakening in the commercial sector. The company's free cash flow has considerably decreased to $0.9 million compared to $46.3 million in the prior period, suggesting challenges in generating positive cash flow amidst efforts to balance capital expenditures. Additionally, prolonged sales cycles and slowed customer growth, driven by hesitance to leverage geospatial data, coupled with potential shortcomings in product development, contribute to a negative outlook for the company's financial performance.