Why Planet Labs Stock Rocketed Almost 50% Higher This Week

Key Points

• Investors liked what they heard about the company's second-quarter performance.

• It posted a 20% revenue gain in that frame.

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Investors very much wanted to colonize Planet Labs' (NYSE: PL) stock over the past few trading days. Thanks largely to encouraging quarterly results published by the company, which provides detailed geographic information about Earth culled from satellites, it had a banner week in the equity market. According to data compiled by S&P Global Market Intelligence, its share price ballooned by almost 50% in that time frame.

A satellite star

The week started off on quite a high note for Planet Labs, as it unveiled earnings results for its second quarter of fiscal 2026 on Monday.

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Image source: Getty Images.

The company managed to boost its revenue by a robust 20% year over year to over $73 million. It also narrowed its generally accepted accounting principles (GAAP) net loss, shrinking it to under $8 million compared to the year-ago deficit of over $16 million. Non-GAAP (adjusted) per-share net loss was $0.03 versus second-quarter 2025's $0.06 shortfall.

Planet Labs beat the consensus analyst estimates for both revenue and profitability. Analysts tracking the stock were modeling barely over $66 million for revenue and $0.04 per share for adjusted net loss.

The following day, the company published the first images from its Pelican-3 satellite. The photos of the ancient city of Turin, Italy, are extremely clear and detailed. This direct example of Planet Lab's output helped boost the buy case for the stock.

Willing investors

Finally, Planet Labs managed to significantly upsize a private issue of convertible senior notes. On Monday, the company announced it was floating $300 million worth of the securities, which mature on Oct. 15, 2030, if not converted into shares of the company's Class A common stock, cash, or a blend of the two before then. Interest is to be paid semiannually.

This was clearly a hot item, as the company upsized the issue twice over the course of the week. By Friday, the total flotation had swelled to $460 million.

Planet Labs said it will use the funds it draws from the issue to "strengthen our balance sheet and enhance our competitive position, while minimizing dilution for our existing shareholders."

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.