Planet Labs PBC (PL) stock surged 13.53% in after-hours trading on Wednesday following the release of its first-quarter fiscal year 2026 financial results, which exceeded analyst expectations and showcased significant growth and financial milestones.

The satellite imaging company reported record Q1 revenue of $66.3 million, marking a 10% increase year-over-year and beating the analyst estimate of $62.3 million. This strong performance was accompanied by the company's first-ever quarter of positive free cash flow, amounting to $8.0 million. Planet Labs also achieved an impressive growth in its backlog, which surged by 140% year-over-year to $527.0 million, while remaining performance obligations (RPOs) increased by 262% to $451.9 million.

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 the current analyst expectations of $270.6 million. The company's focus on delivering global insights at scale through AI-enabled solutions and expanding its satellite services offering appears to be resonating with investors. With approximately $226.1 million in cash, cash equivalents, and short-term investments on its balance sheet, Planet Labs seems well-positioned for continued growth and innovation in the space technology sector.