NATO selects Planet Labs for satellite monitoring in seven-figure deal

SAN FRANCISCO - Planet Labs PBC (NYSE: PL), a satellite imaging company with a market capitalization of $1.65 billion, has secured a new seven-figure contract with NATO to provide daily monitoring and intelligence capabilities across the Alliance’s areas of interest, according to a press release statement issued Thursday. InvestingPro data shows the company maintains strong gross profit margins of 58%.

Under the agreement, Planet will deliver a specialized platform solution combining its PlanetScope Broad Area Monitoring technology with artificial intelligence and machine learning analytics. The system aims to provide persistent space-based surveillance, early warning indicators, and Maritime Domain Awareness functions.

Admiral Pierre Vandier, Supreme Allied Commander Transformation, said the partnership "grants us persistent space-based surveillance, bolstering our enhanced early Indicators and Warnings and strengthening our Maritime Domain Awareness."

The collaboration comes as European nations enhance their defense capabilities in response to changing geopolitical dynamics. The technology represents a shift from reactive surveillance to proactive, broad-area anomaly detection.

The system will be integrated through NATO’s Smart Indications and Warning, Broad Area Detection (SINBAD) project. According to the press release, this initiative aims to strengthen global awareness and address security challenges.

Planet Labs, founded in 2010 by three NASA scientists, operates what it describes as the largest Earth observation fleet of imaging satellites. The company provides satellite imagery and geospatial solutions to customers in various sectors including agriculture, forestry, intelligence, education, and finance.

Planet Labs is publicly traded on the New York Stock Exchange under the ticker symbol PL.

In other recent news, Planet Labs has announced a significant seven-figure contract with NATO to provide advanced daily monitoring and intelligence capabilities. This partnership will utilize Planet Labs’ PlanetScope Broad Area Monitoring technology combined with Artificial Intelligence and Machine Learning analytics to enhance NATO’s surveillance and early warning capabilities. Additionally, several analyst firms have adjusted their outlook on Planet Labs, with Citi, Craig-Hallum, and Wedbush all raising their price targets to $7, citing strong demand and market expansion. Citi analysts noted the company’s first quarter of positive free cash flow and highlighted increased demand from European customers, while Craig-Hallum emphasized substantial wins in maritime awareness and a notable contract with JSAT.

Cantor Fitzgerald reiterated an Overweight rating, maintaining a $6.30 price target, and expressed optimism about Planet Labs’ ability to achieve sustainable free cash flow over the next 24 months. The analysts also mentioned a robust pipeline of deals similar to the JSAT contract. Wedbush analysts raised their price target following Planet Labs’ decision to increase its fiscal year 2026 revenue and adjusted EBITDA guidance, driven by innovations in AI-enabled solutions. Despite potential challenges, such as anticipated budget cuts, Planet Labs remains confident in its financial outlook, with expectations of significant revenue growth and improved profitability.

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