Palladyne AI (NASDAQ:PDYN) Announces Earnings Results

Palladyne AI (NASDAQ:PDYN) issued its quarterly earnings results on Thursday. The company reported ($0.27) EPS for the quarter, missing analysts’ consensus estimates of ($0.23) by ($0.04), Zacks reports. The company had revenue of $5.78 million during the quarter, compared to the consensus estimate of $5.80 million. Palladyne AI had a negative return on equity of 54.38% and a negative net margin of 254.75%.

Here are the key takeaways from Palladyne AI’s conference call:

• Record revenue and backlog growth: Q2 revenue rose 63% sequentially to approximately $5.8 million, while backlog increased 43% to $24.6 million after roughly $13 million of new contract awards. Management reiterated 2026 revenue guidance of $24 million–$27 million.
• Cash burn and expenses remain elevated: Operating cash burn, including CapEx, was $11.1 million in Q2, above the company’s targeted quarterly pace, and GAAP net loss widened to $12.3 million. Palladyne used $10.8 million in ATM proceeds during the quarter, with stock-based compensation expected to increase materially in Q3.
• Autonomy technology gained field validation: SwarmOS and Gremlin-X were used by soldiers in the Ivy Mass and larger PCC6 exercises, demonstrating multi-vendor drone coordination, operation under degraded communications, and control of multiple systems by a single operator. The company said the results led to additional exercise invitations and potential future procurement opportunities.
• Product and defense-program opportunities expanded: Palladyne received a follow-on order for more than 1,000 BRAIN flight computers valued at approximately $2.3 million, advanced Gremlin-X to TRL7, and entered a partnership with Israel Aerospace Industries to Americanize and manufacture loitering munitions. Management also cited more than 20 submitted Department of War proposals representing several hundred million dollars of potential initial value, though outcomes and timing remain uncertain.

Palladyne AI Stock Up 1.7%

Shares of NASDAQ PDYN traded up $0.10 during midday trading on Friday, reaching $5.99. The company had a trading volume of 676,554 shares, compared to its average volume of 926,729. Palladyne AI has a one year low of $4.14 and a one year high of $10.73. The firm’s fifty day moving average price is $6.01 and its 200-day moving average price is $6.48. The stock has a market cap of $278.48 million, a PE ratio of -8.81 and a beta of 3.65.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on PDYN. Jefferies Financial Group upgraded shares of Palladyne AI to a “hold” rating in a research report on Wednesday, June 10th. Alliance Global Partners restated a “buy” rating on shares of Palladyne AI in a research report on Tuesday, May 5th. Northland Securities set a $15.00 price target on Palladyne AI in a research note on Monday, June 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Palladyne AI in a report on Monday. Finally, Lake Street Capital began coverage on Palladyne AI in a research report on Friday, April 17th. They set a “buy” rating and a $11.00 price objective on the stock. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $11.00.

Insider Buying and Selling

In other news, insider Stephen Sonne sold 5,245 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $6.14, for a total transaction of $32,204.30. Following the completion of the sale, the insider owned 197,490 shares of the company’s stock, valued at approximately $1,212,588.60. This represents a 2.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Trevor Thatcher sold 4,561 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $6.14, for a total value of $28,004.54. Following the sale, the chief financial officer directly owned 175,697 shares of the company’s stock, valued at approximately $1,078,779.58. This trade represents a 2.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 26,982 shares of company stock worth $165,669 in the last ninety days. 13.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Palladyne AI

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Millennium Management LLC boosted its holdings in shares of Palladyne AI by 767.3% during the third quarter. Millennium Management LLC now owns 565,693 shares of the company’s stock worth $4,859,000 after purchasing an additional 500,472 shares during the period. Geode Capital Management LLC grew its stake in shares of Palladyne AI by 172.9% in the second quarter. Geode Capital Management LLC now owns 592,640 shares of the company’s stock worth $5,133,000 after purchasing an additional 375,440 shares during the last quarter. Vanguard Group Inc. increased its holdings in Palladyne AI by 26.0% during the 3rd quarter. Vanguard Group Inc. now owns 1,528,052 shares of the company’s stock valued at $13,126,000 after purchasing an additional 315,660 shares during the period. Raymond James Financial Inc. increased its holdings in Palladyne AI by 96.5% during the 3rd quarter. Raymond James Financial Inc. now owns 412,586 shares of the company’s stock valued at $3,544,000 after purchasing an additional 202,571 shares during the period. Finally, Goldman Sachs Group Inc. raised its position in Palladyne AI by 88.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 291,171 shares of the company’s stock valued at $1,240,000 after purchasing an additional 136,914 shares during the last quarter. 26.02% of the stock is currently owned by institutional investors.

Key Stories Impacting Palladyne AI

Here are the key news stories impacting Palladyne AI this week:

• Positive Sentiment: Record growth and expanding backlog: Palladyne highlighted explosive second-quarter growth and a stronger backlog, supporting the outlook for future revenue as demand develops across its AI, aerospace and defense businesses. Palladyne AI Delivers Explosive Q2 Growth and Backlog
• Positive Sentiment: SwarmOS receives additional military validation: The company said its SwarmOS autonomy platform successfully performed again during the U.S. Army’s division-scale test of future warfare. Continued performance at a major defense exercise could improve Palladyne’s credibility and support potential follow-on opportunities. Palladyne AI SwarmOS Army Test
• Positive Sentiment: Full-year revenue outlook remains intact: Palladyne issued 2026 revenue guidance of $24 million to $27 million, a range that brackets the $24.6 million analyst consensus. Maintaining this outlook despite near-term execution challenges provides some support for the shares. Palladyne AI Reports Second Quarter 2026 Results
• Neutral Sentiment: Management emphasized strategic growth: The earnings call focused on record revenue, defense applications and the company’s strategic direction. Investors will likely look for evidence that backlog converts into sustained commercial revenue and improving margins. Palladyne AI Q2 2026 Earnings Call Transcript
• Negative Sentiment: Quarterly loss exceeded expectations: Palladyne reported a second-quarter loss of $0.27 per share, worse than the expected $0.23 loss and the $0.20 loss recorded a year earlier. Revenue of $5.78 million also narrowly missed the $5.80 million consensus estimate, while the company continues to report deeply negative profitability. Palladyne AI Q2 Loss and Revenue Results

About Palladyne AI

Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training.