Shares of Planet Labs PBC (PL) skyrocketed 31.08% in pre-market trading on Thursday following the release of its impressive first-quarter fiscal year 2026 financial results, which exceeded analyst expectations and marked several significant milestones for the satellite imaging company.

Planet Labs reported record Q1 revenue of $66.3 million, representing a 10% year-over-year increase and beating the analyst estimate of $62.3 million. The company achieved breakeven results on a non-GAAP basis, compared to expectations of a $0.04 per share loss. Notably, this quarter marked Planet Labs' first-ever positive free cash flow of $8.0 million, a significant achievement for the growing space technology firm.

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, especially in the defense and intelligence sectors, which saw revenue growth of over 20% year-over-year. Looking ahead, Planet Labs provided an optimistic outlook for fiscal year 2026, raising its revenue guidance to a range of $265 million to $280 million, further fueling investor enthusiasm.