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Rocket Lab vs. Planet Labs: How Their Space Businesses Compare

Rocket Lab pairs launches with spacecraft systems, while Planet sells Earth-observation data and services. Their latest reported quarters show different growth, contract visibility and execution risks.
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Rocket Lab and Planet Labs both sell into the space economy, but their businesses—and the risks behind their growth—are different. Rocket Lab combines launch services with spacecraft and components; Planet sells Earth-observation data and satellite services. In their latest cited results, Rocket Lab reported more quarterly revenue and a larger backlog, while Planet posted faster year-over-year growth and said 98% of its annual contract value was recurring. Those figures cover different reporting periods and do not establish which stock is the better buy.

How Rocket Lab and Planet Labs make money

Rocket Lab: launches plus space systems

Rocket Lab earns revenue from launch services as well as spacecraft, components, and related space systems. That mix matters when interpreting growth: in the quarter ended June 30, 2026, space systems generated $189.5 million of revenue, compared with $44.6 million from launch services. The company’s SEC filing attributed much of the year-over-year increase in space-systems revenue to spacecraft manufacturing and acquisitions; the figures do not support describing all of that growth as organic. Rocket Lab’s Q2 2026 Form 10-Q provides the segment and business details.

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Planet Labs: Earth-observation data and services

Planet’s core business is operating satellites to collect Earth-observation imagery and selling data and satellite services to customers. Rather than relying on a launch each time it recognizes customer demand, its model includes ongoing contracts for access to data and services. That helps explain why the company reports recurring annual contract value (ACV) as a separate indicator alongside revenue and backlog. These measures describe different things and should not be substituted for one another.

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What the latest reported results show

The most recent cited quarters are not aligned: Rocket Lab’s Q2 2026 ended June 30, 2026, while Planet’s Q2 fiscal 2027 ended July 31, 2026. The numbers below are company-reported, not a same-period comparison.

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Measure Rocket Lab Planet Labs
Reporting period Q2 2026, quarter ended June 30, 2026 Q2 fiscal 2027, quarter ended July 31, 2026
Revenue $234.1 million, up 62% year over year $116.1 million, up 58% year over year
Revenue detail $189.5 million space systems; $44.6 million launch services Breakdown not stated in the cited release
Backlog $2.356 billion at June 30, 2026 Approximately $814.9 million at July 31, 2026
Recurring revenue indicator Comparable recurring ACV figure not stated in the cited filing 98% recurring ACV
Profitability Not stated here as a comparable figure $9.4 million GAAP net loss; $13.9 million adjusted EBITDA profit
Cash and short-term investments Not stated here as a comparable figure $865.4 million at July 31, 2026

Rocket Lab reported the larger revenue base and backlog in these latest cited results. Planet had the higher year-over-year revenue growth rate—58% versus Rocket Lab’s 62%? No: Rocket Lab’s reported growth was 62%, compared with Planet’s 58%, so Rocket Lab’s rate was also higher in these quarters. These rates are separated by reporting period and are not a forecast of future growth. The figures come from Rocket Lab’s SEC filing, its Q2 2026 earnings release, and Planet’s Q2 fiscal 2027 results.

Backlog and recurring contracts are not the same kind of visibility

Rocket Lab reported $2.356 billion of backlog as of June 30, 2026, including contracted work across launch services and space systems. Planet reported approximately $814.9 million of backlog as of July 31, 2026, and separately disclosed remaining performance obligations. The companies’ definitions and disclosures are not interchangeable, so the raw totals do not measure identical pools of future work.

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Backlog represents contracted work not yet fulfilled, not revenue already earned or a guaranteed schedule of cash receipts. Rocket Lab’s filing notes that launch and spacecraft contracts typically include termination rights subject to specified fees. Planet’s 98% recurring ACV figure indicates the recurring share of its annual contract value; it is not 98% of quarterly revenue, nor does it mean every contract renews automatically. Read each measure with its own definition and period. Rocket Lab’s filing and Planet’s earnings release describe the reported metrics.

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Profitability and financial capacity need different lenses

Planet reported a $9.4 million GAAP net loss and $13.9 million adjusted EBITDA profit for Q2 fiscal 2027. These are not contradictory: GAAP net income includes items that adjusted EBITDA excludes, so the non-GAAP figure should not be presented as a GAAP profit. Planet also reported $865.4 million in cash, cash equivalents, and short-term investments at July 31, 2026. That balance is a point-in-time measure, not a guarantee about future funding needs.

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The cited Rocket Lab materials do not provide a directly comparable set of profitability and cash figures in the supplied comparison data. Avoid inferring that a larger backlog or revenue figure means stronger cash generation; those are distinct measures.

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Execution risks differ with the business models

Rocket Lab: launch, manufacturing, and Neutron timing

Rocket Lab’s results depend in part on developing Neutron and gaining commercial acceptance for it. Its SEC filing describes launch-vehicle development, qualification, manufacturing, and schedule risks. The company set a Q4 2026 target for Neutron’s first launch; that is a target, not a completed milestone, and testing or qualification could affect timing.

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The filing also describes the announced Iridium acquisition as subject to conditions, including regulatory approval. If approved, closing was expected in 2027. The transaction’s completion and timing therefore remain contingent in the cited filing.

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Planet: recurring contracts still require delivery

Planet’s recurring ACV profile can make revenue visibility different from a business that depends more directly on individual launches or hardware deliveries. It does not eliminate execution risk: customers must continue to receive useful data and services, and reported ACV, revenue, and backlog remain separate metrics. The cited quarter’s positive adjusted EBITDA alongside a GAAP net loss is also a reminder to distinguish operating measures from bottom-line results.

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Which company’s profile fits which investor question?

  • For scale and a broader space-systems mix: Rocket Lab reported higher revenue and backlog in its latest cited quarter, with most of that quarter’s revenue coming from space systems rather than launches.
  • For recurring contract exposure: Planet reported that recurring ACV was 98% in Q2 fiscal 2027, a useful indicator of contract character but not a substitute for revenue or renewal outcomes.
  • For growth-rate comparison: Rocket Lab reported 62% year-over-year revenue growth in Q2 2026; Planet reported 58% in Q2 fiscal 2027. The reporting periods differ, so this is a snapshot rather than a like-for-like trend test.
  • For milestone sensitivity: Rocket Lab carries visible development and schedule exposure around Neutron, as well as acquisition execution conditions related to Iridium.

This is a comparison of operating fundamentals, not a stock recommendation. A judgment about which share is more attractive also requires current share prices, share counts, valuation multiples, and an investor’s time horizon and risk tolerance. The cited operating figures alone cannot establish a valuation winner.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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