Inquired about the drivers behind the significant strength seen in Europe during the quarter, particularly concerning defense work.

Management attributed the strong European demand to geopolitical dynamics, driving a need for sovereign systems quickly. They highlighted Planet's ability to offer both speed (immediate access to existing satellites) and sovereignty (dedicated satellite builds). The company's strong presence in Europe, including a Berlin team and manufacturing expansion, further supports this growth. “The demand is off the charts. We are leaning into it as best we can, both for our data and AI solutions and Constellation services.”

Followed up on the AI element, asking about the status of the Anthropic partnership and the path/bottlenecks to achieving more generic AI solutions.

Management emphasized the shift towards real-world models needing real-world data, where Planet's data is critical. They stated that research collaborations are building towards generic AI solutions that will allow non-technical users to create bespoke applications quickly. They see no major bottlenecks, as data is the key differentiator for AI, and expect these capabilities to come to fruition this year, unlocking huge markets beyond defense. “AI has the potential of making that more generic, that is that anyone can turn up, build their own bespoke application of equivalent fidelity in short order, like maybe within an hour and in a completely bespoke way for their needs.”

Asked about changes in customer behavior and potential contractual implications due to the 14-day satellite imagery delay in the Middle East.

Management stated there were no material changes or implications. They are focused on supporting critical customers in the region and balancing operational needs with transparency and accountability. The delay is a carefully considered decision to ensure safety while still providing access to data. “The short answer is nothing material. Look, -- what we're focused on there is helping our critical customers in the region to the things they need, which is get critical answers fast and trying to help them through that.”

Planet Labs PBC (PL) Q4 FY26 earnings call: guidance and Q&A

Earnings call· Jan 2026 (Q4 FY26)· Industrials· Mar 19, 2026

Source: earnings call transcript

Executive summary

Planet Labs PBC Q4 FY26 — Record Revenue, Profitability, and Strong Backlog

Planet Labs PBC concluded FY26 with record revenue and its first full year of adjusted EBITDA profitability and positive free cash flow, driven by strong execution in satellite services and defense & intelligence. The company is now in a growth CapEx investment cycle, expanding manufacturing and next-gen fleets, while also investing heavily in AI to unlock broader market opportunities in civil and commercial sectors. A robust backlog provides significant visibility for continued revenue growth, though Q1 FY27 anticipates a temporary dip in gross margin and EBITDA due to these strategic investments.

Highlights

Generated record annual revenue of $308 million, representing approximately 26% year-over-year growth.
Achieved adjusted EBITDA profit of $15.5 million for FY26, marking the first full fiscal year of non-GAAP profitability.
Delivered positive free cash flow of $53 million for FY26, a first for the company on an annual basis.
Q4 revenue grew 41% year-over-year to $86.8 million, marking a record quarter.
End-of-period backlog exceeded $900 million, an approximate 79% growth year-on-year, providing strong visibility for FY27.

Concerns

Commercial sector annual revenue was down year-on-year, and civil government revenue was flat year-over-year.
Q1 FY27 non-GAAP gross margin is projected to step down to 49%-51% from Q4 FY26's 57% and FY26's 59%.
Q1 FY27 Adjusted EBITDA is expected to be negative, ranging from -$6 million to -$3 million.
End-of-period customer count was slightly down on a sequential basis, reflecting a shift in sales strategy.

Guidance & targets

Category	Target	Timeline	Confidence
Q1 FY27 Revenue	$87M-$91M high materiality	Q1 · FY27	High
Q1 FY27 Non-GAAP Gross Margin	49%-51% medium materiality	Q1 · FY27	High
Q1 FY27 Adjusted EBITDA	-$6M to -$3M high materiality	Q1 · FY27	High
Q1 FY27 Capital Expenditures	$17M-$23M medium materiality	Q1 · FY27	High
FY27 Revenue	$415M-$440M high materiality	FY27	High
FY27 Non-GAAP Gross Margin	50%-52% medium materiality	FY27	High
FY27 Adjusted EBITDA	breakeven to $10M high materiality	FY27	High
FY27 Rule of 40	Aim to deliver medium materiality	FY27	Medium
FY27 Capital Expenditures	$80M-$95M high materiality	FY27	High
FY27 Free Cash Flow	positive on an annual basis high materiality	FY27	High
Non-GAAP Gross Margin	expansion medium materiality	FY28 and beyond	Medium
Rule of 40	achieved medium materiality	FY28 and beyond	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Defense & Intelligence Full year D&I revenue grew over 50% year-on-year, driven by strong performance in data subscriptions, solutions, and satellite services.	—	over 50%	—	—
Civil Government Full year revenue was flat year-over-year, driven in large part by the end of the contract with Norway for their NCI program.	—	flat	—	—
Commercial Annual revenue was down year-on-year, an expected trend given increased focus on large government customers and headwinds in agriculture.	—	down	—	—
Asia Pacific Approximate revenue growth of 41% year-over-year in fiscal 2026.	—	41%	—	—
EMEA Approximate revenue growth of 48% year-over-year in fiscal 2026.	—	48%	—	—
North America Approximate revenue growth of 11% year-over-year in fiscal 2026.	—	11%	—	—
Latin America Approximate revenue decline of 2% year-over-year in fiscal 2026.	—	down 2%	—	—

PL operating KPIs by quarter

PL operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Jan 2026 Q4 FY26	Apr 2026 Q1 FY27	Jul 2026 Q2 FY27	Change vs prior quarter
Backlog	$900M+ End-of-period backlog was over $900 million, approximately 79% growth year-on-year, providing us with excellent visibility to accelerating our revenue growth for the coming fiscal year. Source: earnings call transcript	~$906M End-of-period backlog was approximately $906 million, equating to approximately 72% growth year-on-year. Source: earnings call transcript	~$815M We estimate our backlog, which includes contracts with the termination for convenience clause, to be approximately $815 million, up approximately 11% year-over-year. Source: earnings call transcript	—
Recurring ACV percentage	98% Recurring ACV was 98% of our end-of-period ACV book of business, reflecting our continued focus on selling subscription data contracts and solutions as opposed to onetime professional or engineering services. Source: earnings call transcript	99% Recurring ACV was 99% of our end-of-period ACV book of business, reflecting our continued focus on selling subscription data contracts and solutions as opposed to onetime professional or engineering services. Source: earnings call transcript	98% Recurring ACV was 98% of our end-of-period ACV book of business, reflecting our continued focus on selling subscription data contracts and solutions as opposed to onetime professional or engineering services. Source: earnings call transcript	-1 pt
Annual or multiyear contracts percentage of ACV	~85% Approximately 85% of our end-of-period ACV book of business consists of annual or multiyear contracts, lower than prior periods as we have seen a higher proportion of large shorter-term government contracts signed in recent quarters. Source: earnings call transcript	~92% Approximately 92% of our end-of-period ACV book of business consists of annual or multiyear contracts. Source: earnings call transcript	~94% Approximately 94% of our end-of-period ACV book of business consists of annual or multiyear contracts. Source: earnings call transcript	—
Net dollar retention rate	116% Net dollar retention rate at the end of fiscal year '26 was 116% and net dollar retention rate with win backs was 118%. Source: earnings call transcript	113% Net dollar retention rate at the end of the first quarter was 113%, and net dollar retention rate with win backs was 114%. Source: earnings call transcript	109% Net dollar retention rate on ACV at the end of the second quarter was 109% and net dollar retention rate with win backs was 110%. Source: earnings call transcript	-4 pt
Net dollar retention rate with winbacks	118% Net dollar retention rate at the end of fiscal year '26 was 116% and net dollar retention rate with win backs was 118%. Source: earnings call transcript	114% Net dollar retention rate at the end of the first quarter was 113%, and net dollar retention rate with win backs was 114%. Source: earnings call transcript	110% Net dollar retention rate on ACV at the end of the second quarter was 109% and net dollar retention rate with win backs was 110%. Source: earnings call transcript	-4 pt
Remaining performance obligations	~$852.4M At the end of FY '26, our remaining performance obligations or RPOs were approximately $852.4 million, up about 106% year-over-year, of which approximately 34% apply to the next 12 months and 65% to the next 24 months. Source: earnings call transcript	~$816M At the end of Q1, our remaining performance obligations or RPOs were approximately $816 million, up over 80% year-over-year, of which approximately 35% apply to the next 12 months and 66% to the next 24 months. Source: earnings call transcript	~$753M At the end of Q2, our remaining performance obligations or RPOs were approximately $753 million, up approximately 9% year-over-year of which approximately 46% apply to the next 12 months and 68% to the next 24 months. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Remaining Performance Obligations (RPOs) $852.4M end of FY26

up ~106% YoY

Approximately 34% applies to the next 12 months and 65% to the next 24 months.

Backlog (including termination for convenience) $900M end of FY26

up ~79% YoY

Approximately 37% applies to the next 12 months and 67% to the next 24 months.

Product announcements

Product	Type	Timeline
Pelican satellites	launch	multiple launches scheduled this year
Owl spacecraft	launch	this year
Sun Catcher spacecraft	launch	this year
GPU-based computing platform for data processing	expansion	—
NVIDIA's new processor for in-space use	milestone	—
GPU native AI engine for satellite data	launch	—

Deals & partnerships

Germany Satellite services agreement $240M

A $240 million agreement funded by Germany for satellite services, part of three such deals in 12 months.

Swedish Armed Forces Multiyear satellite services and data deal 9-figure multiyear

A 9-figure multiyear deal announced in January to rapidly deliver a suite of satellites, space-based data, and solutions.

U.S. Defense Innovation Unit (DIU) Extension of pilot for Indo Pacific Command 7-figure

Awarded a 7-figure extension of a pilot in support of Indo Pacific Command to deliver vital indications and warnings, demonstrating leverage of Planet data and AI-powered analytics.

U.S. Defense Innovation Unit (DIU) Option under hybrid space architecture pilot just under $1M

DIU exercised an option under an existing hybrid space architecture pilot with Planet for just under $1 million.

NATO's Allied Command Transformation Extension of agreement for space-based surveillance

Extended its agreement with Planet to deliver persistent space-based surveillance and enhanced indications and warning capabilities.

U.S. Defense Agency Prime contractor for Shield IDIQ contract vehicle

Selected Planet as a prime contractor for the Shield IDIQ contract vehicle.

German Federal Agency for Cartography and Geodesy (BKG) Renewal and expansion of countrywide partnership 7-figure 1-year

Awarded a 7-figure renewal and expansion by BKG for a 1-year countrywide partnership.

Slovenia's Surveying and Mapping Authority Enterprise scale agreement for satellite data

Announced an enterprise scale agreement to provide comprehensive satellite data and high-resolution tasking capabilities for agriculture, urban planning, and disaster management.

San Diego Gas & Electric Renewal for vegetation health monitoring

Awarded a renewal for monitoring vegetation health and conditions to manage wildfire risk.

AI DASH Strategic partnership for fuel monitoring data

Signed a strategic partnership establishing Planet as the preferred provider of daily and weekly fuel monitoring data for utility wildfire risk mitigation across North America.

NVIDIA Technology collaboration on multiple fronts

Expanded technology collaboration to explore GPU-based computing for data processing, test new in-space processors, and build a scaled GPU native AI engine for satellite data.

Google Partnership to demonstrate satellites for compute in space (Sun Catcher)

Cutting-edge partnership to demonstrate satellites for compute in space, involving putting Google's CPUs into orbit as an early tech demo.

Capital programs

San Francisco Manufacturing Capacity Expansion underway

Benefit:doubled satellite manufacturing capacity

Leaning into market demand by expanding manufacturing capacity in San Francisco.

Berlin Manufacturing Facility underway

Benefit:second manufacturing location

Building out a second manufacturing location in Berlin to meet demand and connect with European interest.

Next-Generation Fleets Investment underway

Benefit:next-generation satellites (Pelican, Owl, Sun Catcher)

Investments in next-generation satellites to meet accelerating market demand, including scaling Pelican fleet and launching demos of Owl and Sun Catcher.

Risks & headwinds

Commercial sector revenue decline FY26

down year-on-year

Mitigation:Increased focus on large government customers, advancements in AI-enabled solutions to re-accelerate growth.

Civil government sector revenue stagnation FY26

flat year-over-year

Mitigation:End of Norway NCI program contract, advancements in AI-enabled solutions to re-accelerate growth.

Q1 FY27 Non-GAAP Gross Margin step-down Q1 FY27

49%-51%

Mitigation:Driven by satellite services contracts, mix of AI-enabled partner solutions, and investments in next-generation fleets; anticipated to expand in subsequent years.

Q1 FY27 Adjusted EBITDA expected negative Q1 FY27

-$6M to -$3M

Mitigation:Reflects investments to drive sustained growth; targeting breakeven to $10M for full FY27.

Sequential decline in customer count end of FY26

slightly down sequentially to 897 customers

Mitigation:Intentional shift to focus on large customer opportunities and leveraging self-serve platform for smaller customers; focus on ACV retention metrics instead.

Middle East satellite imagery delay ongoing

14 days

Mitigation:Carefully thoughtful decision balancing operational needs and transparency; focused on supporting critical customers.

What to watch in Q1 FY27

AI-enabled generic solutions impact

this year

Current start of returns expected this year

Target visible impact on market expansion

Why it matters

AI is expected to unlock huge market opportunities in commercial and civil government sectors by democratizing access to Earth Intelligence.

This year, we expect to see the start of returns into our investments in AI.

Find out whether PL delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked for an update on the timing and scaling of the Sun Catcher opportunity and the nascent geo-intelligence platform with NVIDIA, and their revenue implications.

Management stated Sun Catcher is an early-stage R&D tech demo focused on putting CPUs into space, with long-term market potential but no immediate revenue. The NVIDIA collaboration is also a research partnership focused on leveraging GPUs for faster data processing, with no direct revenue implications currently.

“SunCapture,'s going well. It's early days. Just to recap that project. This is about putting their CPUs into space. It's an early tech demo that is what we're doing right this second for them.”

asked by Colin Canfield · answered by William Marshall

3 min read 6 chapters

Detailed narrative

Defense & Intelligence Sector Drives Strong Growth

The Defense & Intelligence (D&I) sector was a major area of strength for Planet in FY26, with revenue growing over 50% year-on-year. This growth was underpinned by global dynamics and strong performance in data subscriptions, solutions, and satellite services. Key wins included two awards from the U.S.

Defense Innovation Unit (DIU), a 7-figure extension for Indo Pacific Command, and an option under the hybrid space architecture pilot. NATO's Allied Command Transformation also extended its agreement, and Planet was selected as a prime contractor for the U.S. Defense Agency's Shield IDIQ contract vehicle.

Satellite Services Momentum and Manufacturing Expansion

Planet announced a 9-figure multiyear deal with the Swedish armed forces for satellites, data, and solutions, following a $240 million agreement funded by Germany. The company is executing well on existing contracts, progressing with builds for JSAT and serving dedicated capacity under the German contract.

Robust demand for satellite services, driven by geopolitical landscapes and the need for sovereign space systems, has led Planet to expand its manufacturing capacity in San Francisco and build a second location in Berlin, leveraging its proven track record and speed in satellite deployment.

AI Integration and Transformational Impact

The integration of Bedrock Research is scaling AI-based solutions, enabling rapid setup of monitoring sites (e.g., 600 new sites in 3 hours). Planet is collaborating with NVIDIA to explore GPU-based processing for faster data pipelines and testing NVIDIA's new processor for in-space use.

The company anticipates AI will be transformational, leveraging its deep data archive to train next-generation real-world models, similar to Wikipedia for LLMs. This is expected to unlock huge markets in commercial and civil government sectors by democratizing access to Earth Intelligence through generic AI applications.

Commercial and Civil Government Outlook

While annual revenue in the commercial sector was down and civil government was flat year-over-year, Planet remains confident in these segments as significant market opportunities. The company attributes the recent trend to an increased focus on large government customers and headwinds in agriculture.

However, advancements in AI-enabled solutions are expected to re-accelerate growth in these areas, enabling non-technical users to create bespoke applications and expand into markets such as agriculture, insurance, energy, supply chain, and finance.

Financial Milestones and Strategic Investments

FY26 marked Planet's first full fiscal year of adjusted EBITDA profitability ($15.5 million) and positive free cash flow ($52.9 million), alongside record revenue of $308 million. The company achieved Rule of 40 in Q4 and Rule of 30 for the full year.

Planet is now in a growth CapEx investment cycle, with $81.5 million spent in FY26, focusing on scaling manufacturing capacity and building out next-generation fleets like Pelican, Owl, and Sun Catcher to meet accelerating market demand and capture future growth opportunities.

Customer Strategy and Retention Metrics

Planet's end-of-period customer count was 897, slightly down sequentially, reflecting an intentional shift by the direct sales team to focus on large customer opportunities and leverage a self-serve platform for smaller customers. Management believes net dollar retention rates on ACV are more constructive measures of business health.

Net dollar retention rate at the end of FY26 was 116%, and 118% with win-backs, indicating strong retention of high-value accounts. The company plans to discontinue reporting customer count from Q1 FY27.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.