Dell Technologies vs. Planet Labs PBC: Which Technology Stock Is a Better Buy in 2026?

Investors often face a choice between established hardware giants and disruptive high-growth specialists. Comparing Dell Technologies Inc (NYSE:DELL) and Planet Labs PBC (NYSE:PL) highlights the trade-offs between cash-flow stability and satellite-scale ambition.

Dell provides the physical backbone of the digital economy, from enterprise servers to consumer laptops. Planet Labs captures daily images of the entire Earth's landmass to provide actionable data for government and commercial clients. This comparison evaluates which business model offers a more compelling risk-reward profile for long-term investors.

The case for Dell Technologies

Dell sells a wide range of hardware, software, and integrated services among tech stocks to global enterprises and public institutions. It relies on a direct sales force and a partner network that accounts for nearly 40% of its net revenue. Recently, the company ended its distribution partnership with Arrow Enterprise Computing Solutions to refine its strategy for high-end server and storage sales. It serves a diverse global client base ranging from large global enterprises to consumers, increasingly offering consumption-based models like utility and subscription.

In FY 2026, revenue reached approximately $113.5 billion, representing growth of close to 19% compared to the previous year. The company reported net income of more than $5.9 billion. This performance reflects a steady upward trend from FY 2024, when revenue was approximately $88.4 billion and net income was $3.2 billion. The growth is largely driven by increased demand for infrastructure solutions and high-performance computing required for artificial intelligence applications.

As of its January 2026 balance sheet, its net debt (total debt less cash and equivalents on hand) was $20 billion. Free cash flow, which is cash from operations minus capital expenditures, reached approximately $8.6 billion for the year. This strong cash generation allows the company to maintain its leading position in the infrastructure market.

The case for Planet Labs PBC

Planet Labs PBC designs and operates a fleet of roughly 200 satellites to provide daily Earth-imaging data and analytics. It serves a diverse client base ranging from defense and intelligence agencies to commercial agricultural enterprises. To deepen its integration with regional customers, the company recently opened a new London office to bolster European partnerships and AI integration.

In FY 2026, the company reported revenue of $307.7 million, which is a growth of approximately 26% compared to the previous year. However, it recorded a net loss of nearly $246.9 million, up from a loss of $123.2 million in its prior fiscal year.

As of its January 2026 balance sheet, Planet Labs maintained a debt-to-equity ratio of approximately 2.5x, meaning its total debt is 2.5 times the value of its equity. Its current ratio was a healthy 1.7x, and the company generated nearly $57.6 million in free cash flow, or cash from operations minus capital expenditures. Note that stock-based compensation (SBC) represented roughly 41% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparison

Dell Technologies faces a complex set of challenges, including a $70 million server pricing lawsuit from XTX Markets that could impact operational results. Its heavy strategic dependence on artificial intelligence also carries risks, as rapid shifts in technology could lead to product obsolescence or inventory impairments. Furthermore, the company relies on a concentrated supply chain in Asia and faces constant competition from Hewlett Packard Enterprise Co (NYSE:HPE) and other global manufacturers.

Planet Labs PBC deals with the inherent volatility of the aerospace industry, where launch failures or satellite malfunctions can lead to immediate revenue losses. It also faces growing competition from government-subsidized providers and companies like Space Exploration Technologies (NASDAQ:SPCX), as well as mapping data from Alphabet Inc (NASDAQ:GOOGL). The business is highly capital-intensive, requiring constant investment to replace aging satellites, while its history of operating losses remains a concern for long-term scaling.

Valuation comparison

Dell Technologies trades at a much lower P/S ratio than its peer, reflecting its mature hardware business. Investors paying for the growth of Planet Labs need to expect future earnings, given the company has no forward P/E for its current fiscal year because it is not expected to turn a profit.

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Planet Labs operates a series of satellites that provide military, civil, and commercial intelligence and data about the atmosphere, sea lanes, and facilities on remote land. Various, mostly U.S., militaries accounted for about two-thirds of sales, while non-military businesses included everything from farmland monitoring for commodity traders to surveying Earth’s electromagnetic fields for climate researchers. One potentially lucrative deal could be for Alphabet’s Project Suncatcher, which seeks to build AI data centers in space that would use solar power and not require cooling.

In the near term, however, Wall Street analysts expected Planet Labs to post a wider net loss of about $306 million in fiscal 2027 on sales of $436 million.

Dell, meanwhile, is seen boosting its sales 50% this current fiscal year 2027, to about $171 billion, with more than $11 billion in both net income and free cash flow coming in as well. While Dell still sells the laptops that originated the business, its story for investors today is all about AI. The business is selling AI-optimized servers hand over fist, with management expecting more than $60 billion in AI server sales in FY 2027, almost triple the prior year.

Planet Labs is a well-growing business in the still-nascent sector of space services. But Dell’s exposure to the AI data center wave is too strong to ignore in 2026, given the company trades at a much lower P/S and has a reasonable P/E for a tech business.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Hewlett Packard Enterprise, and Planet Labs PBC. The Motley Fool recommends Helmerich & Payne. The Motley Fool has a disclosure policy.