Shares of Planet Labs (PL) surged 12% on news of a major contract with the Swedish Armed Forces, boosting investor confidence in the company’s global security role. The low-nine-figure deal includes satellite delivery and data solutions, marking Planet’s third such contract in a year, totaling $500 million in agreements.

Planet Labs’ stock has skyrocketed over 620% in the past year, driven by its expanding applications in agriculture, defense, energy, and forestry. With a focus on subscription-based data contracts, the company offers cost-effective, advanced space capabilities to governments and enterprises globally, positioning it for sustained growth amid increasing demand for real-time Earth observation.

Despite margin pressures from strategic investments, Planet Labs achieved its fourth consecutive quarter of adjusted EBITDA profitability at $5.6 million. With a backlog of $734.5 million and positive free cash flow, the company’s strong fundamentals, customer retention, and improving profitability signal continued momentum in 2026.

Analysts cautiously optimistic about Planet Labs’ future, citing growing government contracts, expanding backlog, profitability improvements, and high recurring revenue base. With a “Moderate Buy” consensus rating, the company’s momentum is expected to drive sustained growth and share price support in 2026.

Read more at Yahoo Finance: Is Planet Labs Stock a Buy or Sell After a Monster Rally?