Shares of Plant Labs (PL 2.86%) jumped 83.1% higher in September, according to data provided by S&P Global Market Intelligence.
During the month, the Earth-imaging satellite company announced strong second-quarter earnings results and made significant upward revisions in its guidance. Its results were met with a flurry of upgrades from investment banks as a result. Here's a breakdown.
Planet Labs reported strong results and raised its forecast
Planet Labs reported its second-quarter earnings results on Sept. 8. During the quarter, the company notched revenue growth of nearly 20% to $73.4 million, well above analysts' consensus estimates of $66.1 million.
CEO Will Marshall said he was "incredibly pleased with the strong results" and that the "business is humming." The company experienced strong momentum in both its satellite and data services segments, with record revenue and a substantial increase in its backlog. The company reported that its backlog increased to $736.1 million at the end of the quarter, representing a 245% year-over-year increase.
Some major contract wins during the quarter included agreements with the German government, NATO, and the U.S. Defense Innovation Unit (part of the U.S. Department of Defense). Planet expanded its existing Hybrid Space Architecture (HSA) agreement with the Defense Innovation Unit, and also secured a new seven-figure contract with NATO, complementing July announcements.

Image source: Getty Images.
It also announced a 240 million-euro multiyear deal with the German government. The agreement includes dedicated capacity on Planet's next-generation Pelican satellites, as well as a renewed multiyear contract for PlanetScope data and maritime monitoring.
On the back of these strong results, Planet Labs raised its guidance. For the third quarter, it projects revenue to be in the range of $71 million to $74 million, surpassing the consensus analyst estimate of $68.86 million. For its full 2026 fiscal year (which ends Jan. 31), it projects revenue to be in the range of $281 million to $289 million, up from the previously guided range of $265 million to $280 million.
A play on the growing space economy
Following its results, Needham and Citizens JMP raised their price targets to $12 and $11, respectively. Clear Street raised its price target to $12 from $9 and maintained a buy rating. The analyst noted that the results were well ahead of expectations, leading it to forecast that Planet would achieve annual free cash flow in 2026, a year sooner than previously forecast.
Planet Labs' stock rallied in September, driven by strong growth and a promising outlook for the satellite operator. For aggressive growth investors, the stock offers an intriguing opportunity to invest in the growing space economy.