What does it indicate when earned value is above planned value?

When earned value is above planned value, it signifies that the project is ahead of schedule because it indicates that more work has been completed than what was originally planned for that time period. In project management, earned value is a crucial metric that helps assess project performance by measuring the value of work actually completed against the value that was planned.

When this metric is favorable, it demonstrates effective progress towards project objectives, showing that resources are being utilized efficiently and timelines are being adhered to. This positive scenario can instill confidence among stakeholders and can often lead to better morale within the project team.

The other options do not directly relate to the relationship between earned value and planned value as effectively as the correct choice does. For instance, while being under budget might be a positive outcome, it is not directly indicated by the earned value metric alone. Similarly, the risk of future work falling behind and stakeholder satisfaction is not inherently tied to the earned value being above planned value. Those points may require additional context or metrics to fully assess the project's status.