After suffering a significant drop in late 2021 and spending years without a breakout, the stock of the geospatial intelligence services and Earth observation satellite company BlackSky Technology (NYSE: BKSY) saw significant success in the last 12 months.
Specifically, after spending multiple years below the $10 mark, the shares of the ‘UFO company’ broke out and rallied 253% between May 12, 2025, and the same date in 2026. A deluge of contracts secured year-to-date (YTD) reinforced the surge, and BlackSky stock is up 117% to $40.68 since January 2: the first regular trading session of the year.
The shift in the equity market fortunes also translated into strong business results, with the satellite company revealing particularly strong results in its most recent quarterly filing – covering the first quarter (Q1) of 2026 – and led to significant guidance upgrades.
Here’s why BlackSky stock soared 117% in 2026
Indeed, BlackSky revealed approximately $160 million in various contracts and a likely $90 million contract with the U.S. Air Force (USAF), while reporting $20.8 millon in revenue for Q1.
Furthermore, Chief Executive Officer (CEO) Brian O’Toole explained that the company is ‘off to a strong start to 2026,’ before adding that ‘demand for our Gen-3 capabilities has never been stronger.’
BlackSky also revised its whole-year 2026 revenue guidance to a range of $130 million to $150 – up from the previous $120-145 million – implying an overall 12-month growth of 30%.
The company’s integration of artificial intelligence (AI) technology and the deployment of its third-generation satellites were particularly highlighted as related services enjoyed both a 14% rise compared to the previous quarter and are expected to grow 50% in 2026.
BlackSky’s capability to deploy Gen3 satellites was also increased in 2026 with a partnership with Rocket Lab (NASDAQ: RKLB) announced late in February.
What is next for the BlackSky ‘UFO stock’
Looking ahead, BKSY stock appears to benefit from a particularly strong setup for a continued rally.
Along with the contracts and optimistic guidance, BlackSky equity remains substantially below the psychological barrier presented by its all-time highs (ATH), as, in 2021, it was changing hands above $90.
Technical analysis (TA) also paints a bullish picture with both the moving averages (MA) and oscillators showing BKSY as a ‘Buy,’ for an overall rating of ‘Strong Buy,’ on the stock analysis platform TradingView.
Lastly, the ‘UFO stock’ boasts confidence from Wall Street, though the mismatch between the overall ‘Strong Buy’ rating, underscored by a complete absence of ‘Sell’ recommendations, and the average price target $36.61 – 11.52% below the press time price – demonstrates there have been few recent revisions issued by institutional analysts.
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