Planet Labs Lands 240M German Contract, Expands Global Defense Footprint

Planet Labs (NYSE:PL) is one of the best space stocks to buy according to hedge funds. On July 1st, the company announced a €240 million multi-year satellite services contract with the German government, one of the largest in its history.

The deal includes direct downlink from its next-generation Pelican satellites, high-resolution SkySat imagery, and AI-enhanced surveillance tools, specifically designed for security, infrastructure monitoring, and maritime awareness. The services are set to begin in January 2026. Around the same time, Planet revealed four additional wins in the defense and intelligence sector, including an expanded partnership with the U.S. Defense Innovation Unit for Indo-Pacific threat detection, a seven-figure contract with the U.S. Navy for maritime operations, and a NATO surveillance contract focused on early warning systems.

All four were disclosed in a July 1st press release. While analyst updates following the announcement are still pending, firms like Needham, Wedbush, and Cantor Fitzgerald have recently reaffirmed bullish stances, citing strong momentum in Planet’s government and AI verticals.

Planet Labs PBC, founded by ex-NASA engineers in 2010, operates the world’s largest fleet of Earth observation satellites. It provides daily imagery and AI-driven analytics to customers in defense, agriculture, climate monitoring, and urban planning.

While we acknowledge the potential of PL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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