---
title: "Planet Labs and NASA's Tanager Test: Space Data Theme, Narrowing Losses"
canonical_url: https://www.stockexpertai.com/journal/2026-10-23/planet-labs-and-nasa-s-tanager-test-space-data-theme-thin-profits-5adab245816d
last_updated: 2026-10-23T04:50:09.607Z
section: "Tech Pulse"
author: "Stock Expert AI Research"
publisher: Stock Expert AI
tickers: PL
content_type: journal-article
---

# Planet Labs and NASA's Tanager Test: Space Data Theme, Narrowing Losses

_NASA will evaluate Planet's hyperspectral satellite data, a small step that fits a broader trend of government interest in commercial Earth data, while the stock sits near the low end of its 52-week range._

![Data cover: Planet Labs and NASA's Tanager Test: Space Data Theme, Narrowing Losses](/public-objects/streetnews/2026-10-23/TECH_PULSE-cover-c9652e0b.jpg)
Stock Expert AI data cover: figures from Financial Modeling Prep; background is an illustrative public-domain photo, credited on the image.

Planet Labs (NYSE: PL) said on Oct. 21, 2026 that NASA awarded it an evaluation task order to test its Tanager hyperspectral satellite data. The award is a trial, not a large contract. As background, our own explanation of the theme is that governments increasingly buy commercial Earth data instead of building everything themselves; the release does not make that claim. The company is growing quickly, with revenue of $116.1M in the quarter ended July 31, 2026, yet it still loses money and the shares traded at $13.08 on Oct. 22, 2026.

## Key facts

- **Oct. 21, 2026:** Planet Labs Federal, a subsidiary, was awarded an evaluation task order under NASA's Commercial Satellite Data Acquisition (CSDA) program, according to the company's release.
- **Sept. 3, 2026:** Planet reported revenue of $116.1M for the quarter ended July 31, 2026 (Q2 FY2027), against an analyst estimate of $104.5M.
- **Oct. 22, 2026:** The latest quote was $13.08, down 4.60% on the day. Its 52-week range is $10.52 to $51.76.
- **July 31, 2026:** Cash and short-term investments were $865.4M, above total debt of $448.3M. FMP separately reports net debt of $33.1M. The two figures differ, and the data provided does not explain why.
- **Dec. 9, 2026:** Next earnings date. Analysts expect revenue of $104.3M and EPS of -0.02.

| Metric | Q2 FY2027 (ended July 31, 2026) | Year-ago quarter (ended July 31, 2025) |
|---|---|---|
| Revenue | $116.1M | $73.4M |
| Gross margin | 56.6% | 57.6% |
| Operating margin | -11.6% | -24.5% |
| Operating income | $-13.5M | $-18.0M |
| Net income | $-9.4M | $-22.6M |
| Free cash flow | $25.6M | $49.3M |

## What happened

**The theme.** Satellites that photograph the Earth every day produce data that governments and companies use to track crops, forests, infrastructure and military activity. Some of that data is bought from private companies. Planet describes itself as "a leading provider of daily data and insights about change on Earth" and sells subscriptions to its imagery.

Tanager is a different kind of product. It is hyperspectral, meaning each image captures many narrow bands of light instead of just red, green and blue. Different materials reflect light differently, so the data can help identify things like methane leaks, mineral types, crop stress or water quality. A regular photo shows what a place looks like. Hyperspectral data helps show what it is made of.

**The NASA award.** NASA's CSDA program buys commercial data to test whether it can support the agency's science. Under this task order, NASA will assess the Tanager dataset's quality, reliability and usefulness for Earth science goals, according to the release. This is an evaluation. The release, as provided to us, does not disclose a value or any follow-on commitment from NASA. The potential value for Planet is credibility: a positive review from a respected science agency can help when selling to other government and commercial buyers.

**The latest quarter.** The business behind the headline looked stronger in the quarter reported Sept. 3, 2026. Revenue of $116.1M beat the analyst estimate of $104.5M by $11.5M, and was 58.1% higher than the year-ago quarter's $73.4M. FMP lists reported EPS of 0.02 against an estimate of -0.01903. GAAP (standard accounting) diluted EPS for the quarter was -0.03, so the two figures appear to be on different bases. Check which one a source is using before comparing.

By region, North America revenue was $39.0M, EMEA (Europe, Middle East and Africa) was $55.2M, Asia Pacific and Japan was $19.1M and Latin America was $2.7M. The largest share came from outside North America.

The stock has not followed the business. It sits well below its 52-week high of $51.76, and one Zacks headline on Oct. 21, 2026 noted a decline over the prior four weeks. A separate headline that day described a sector rally after SpaceX results.

## Why it matters for investors

**The trend improved sharply in one quarter.** Operating margin, which is operating profit as a share of revenue, was -24.5% a year ago, -22.6% in the quarter ended Oct. 31, 2025, -41.5% in the quarter ended Jan. 31, 2026 and -37.1% in the quarter ended April 30, 2026. It then improved to -11.6% in the latest quarter. Net loss also narrowed sharply, to $-9.4M from $-152.5M and $-138.9M in the two prior quarters. Those earlier net losses were far larger than their operating losses, so most of them arose below the operating line; the data does not specify the cause. Gross margin, which is what is left after the direct cost of delivering the service, slipped from 57.6% a year ago to 56.6%, so the operating margin improvement came from spreading operating costs over more revenue, not from cheaper delivery. The company's call commentary was not part of the data provided for this article, so we cannot quote management on what drove the two prior quarters' larger losses.

**Cash flow is positive but uneven.** Free cash flow (operating cash flow minus capital spending) was $25.6M in the latest quarter, after roughly break-even or slightly negative readings in the three quarters before it: $650,000 in the quarter ended Oct. 31, 2025, $-951,000 in the quarter ended Jan. 31, 2026 and $-1.9M in the quarter ended April 30, 2026. A year ago it was higher, at $49.3M. Operating cash flow was $52.9M, and capital spending was $27.3M; the data does not break down what that spending covers. Buybacks were $8.7M in the latest quarter. FMP's buyback line for the quarter ended April 30, 2026 shows a positive $94.8M; as a data caveat, the sign and size differ from the other quarters, so we would not treat it as a reliable repurchase figure.

**Valuation is demanding for a loss-maker.** On a trailing 12-month basis, price-to-sales is 11.77 and price to free cash flow is 190.00. The P/E is negative at -11.89 because of losses, and net margin is -95.1%, which covers the trailing period including the heavy losses of the prior two quarters. Peers vary widely:

- Mercury Systems (MRCY): market cap $4.60B, net margin -3.0%.
- Firefly Aerospace (FLY): market cap $2.93B, net margin -126.6%.
- Eos Energy Enterprises (EOSE): market cap $618.5M, net margin -246.8%.
- Argan (AGX): market cap $4.63B, P/E 25.68 and net margin 15.1%, the only profitable name in the group.

Planet's market cap is $4.45B, close to Mercury's and Argan's, but its margins are still negative.

**Analysts are more positive than our model.** Of 23 ratings, 13 are buy and 10 are hold, with none at sell, for a consensus of "Buy." The average price target is $31.00, the median is $28.00, and the range runs from $17.00 to $50.00. All of those sit above the $13.08 latest quote, though targets are opinions and often lag fast price moves. FMP's discounted cash flow model, an estimate of value based on projected cash, gives -10.31 USD per share. A negative model value is a caveat on the model's output given the company's negative earnings, and should not be read as a literal price estimate.

**Our MoonshotScore is weak.** Stock Expert AI's MoonshotScore V2 for PL is 18 (Weak). The pillars, measured relative to its sector, are growth 44, momentum 21, quality 14, safety 17 and valuation 12. Growth is the strongest area, which matches the revenue trend. Quality, safety and valuation are the weakest. Financial strength scores agree: a Piotroski score of 3 on a 0-9 scale and an Altman Z of 1.67, both on the low side.

## What could go wrong

- **Losses are not gone.** One better quarter is not a trend, and the two earlier quarters had much larger net losses, mostly below the operating line for reasons the data does not specify.
- **Evaluation may not become revenue.** The NASA order is a test, and the release as provided does not disclose a value or any follow-on commitment.
- **Valuation leaves little room.** A price-to-sales of 11.77 assumes growth continues.
- **Insider selling.** Among recent Form 4 filings in the last 90 days, there were 5 sales and 0 open-market purchases. Sales can have many personal reasons, but there is no buying to offset them.
- **Balance sheet.** Debt of $448.3M is covered by cash and short-term investments, but debt-to-equity is 0.79, and capital spending was $27.3M in the latest quarter.

## What to watch next

- **Dec. 9, 2026 earnings.** The estimate of $104.3M in revenue is below the quarter just reported, so watch whether the company's results and its own outlook confirm the jump or suggest it was partly one-time.
- **Margins.** Whether operating margin holds near -11.6% or moves back toward the earlier readings.
- **Free cash flow.** Whether it stays positive as capital spending continues.
- **Tanager follow-through.** Any statement on whether NASA's evaluation leads to a broader purchase.
- **Analyst expectations.** Estimates for the periods ending April 30, 2028 and July 31, 2028 show revenue of $163.0M and $180.1M, with EPS of -0.01 and 0.01 from two analysts each.

## Frequently asked questions

## Q: What did NASA award Planet Labs?
According to the company's Oct. 21, 2026 release, NASA awarded Planet Labs Federal an evaluation task order under its CSDA program. NASA will assess the quality, reliability and usefulness of Planet's Tanager hyperspectral data for its Earth science goals. It is a trial, and the release as provided does not disclose a long-term purchase commitment.

## Q: What is hyperspectral satellite data?
It is imagery that records many narrow bands of light instead of the three colors in an ordinary photo. Because materials reflect light in distinct ways, the data can help identify things like gases, minerals, vegetation health and water conditions from orbit.

## Q: Is Planet Labs profitable?
Not yet on a GAAP basis. In the quarter ended July 31, 2026, net income was $-9.4M and diluted EPS was -0.03, though revenue grew and losses narrowed from a year earlier. Free cash flow was positive at $25.6M. Trailing 12-month net margin is -95.1%. This article is information, not investment advice.



*This is educational content, not investment advice. Past performance does not guarantee future results.*

## Related Tickers
- [PL](https://www.stockexpertai.com/stock/pl)

## Sources
- [Stock Expert AI PL page: quote, financials and MoonshotScore](https://www.stockexpertai.com/stock/pl)
- [businesswire.com: Planet Awarded NASA Commercial Satellite Data Acquisition (CSDA) Evaluation Task Order for Tanager Hyperspectral Data](https://www.businesswire.com/news/home/20261021824897/en/Planet-Awarded-NASA-Commercial-Satellite-Data-Acquisition-CSDA-Evaluation-Task-Order-for-Tanager-Hyperspectral-Data/)
- [zacks.com: Planet Labs vs. BlackSky: Which Space Stock Is the Better Pick?](https://www.zacks.com/stock/news/3013008/planet-labs-vs-blacksky-which-space-stock-is-the-better-pick?cid=CS-STOCKNEWSAPI-FT-analyst_blog|most_popular_stocks-3013008)
- [247wallst.com: Space Stocks Rally as SpaceX Results Lift Sector: Intuitive Machines Advances 5%, Redwire and Planet Labs Climb 4%](https://247wallst.com/investing/2026/10/21/space-stocks-rally-as-spacex-results-lift-sector-intuitive-machines-advances-5-redwire-and-planet-labs-climb-4/)
- [zacks.com: After Plunging 20.8% in 4 Weeks, Here's Why the Trend Might Reverse for Planet Labs PBC (PL)](https://www.zacks.com/stock/news/3011765/after-plunging-20-8-in-4-weeks-here-s-why-the-trend-might-reverse-for-planet-labs-pbc-pl?cid=CS-STOCKNEWSAPI-FT-fundamental_analysis|rsi-3011765)

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_AI-generated under human editorial supervision. Educational research, not financial advice._