Shares of Planet Labs PBC (PL) surged 14.79% in after-hours trading on Wednesday following the company's impressive first-quarter fiscal 2026 financial results, which exceeded analyst expectations and marked several significant milestones.

The satellite imaging company reported record Q1 revenue of $66.3 million, representing a 10% year-over-year increase and beating the analyst estimate of $62.3 million. Planet Labs achieved breakeven results on a non-GAAP basis, compared to expectations of a $0.04 per share loss. The company also reached a crucial financial milestone, generating its first-ever quarter of positive free cash flow at $8.0 million.

Investors were particularly encouraged by Planet Labs' strong backlog growth, which surged 140% year-over-year to $527.0 million, while remaining performance obligations (RPOs) increased by 262% to $451.9 million. These metrics indicate significant future revenue coverage and growth visibility. The company's focus on AI-enabled solutions and expanding satellite services offerings appears to be gaining traction with customers, especially in the defense and intelligence sectors.

Looking ahead, Planet Labs provided an optimistic outlook for fiscal year 2026, projecting full-year revenue in the range of $265 million to $280 million. This forecast aligns closely with analyst expectations and suggests continued growth momentum. With a solid balance sheet showing approximately $226.1 million in cash, cash equivalents, and short-term investments, Planet Labs appears well-positioned to execute its growth strategy in the expanding space technology market.