Palladyne AI (NASDAQ:PDYN) Issues Earnings Results, Misses Expectations By $0.01 EPS

Palladyne AI (NASDAQ:PDYN) announced its quarterly earnings data on Tuesday. The company reported ($0.25) EPS for the quarter, missing analysts’ consensus estimates of ($0.24) by ($0.01), Zacks reports. The firm had revenue of $8.56 million during the quarter, compared to analyst estimates of $7.54 million. Palladyne AI had a negative net margin of 196.74% and a negative return on equity of 61.10%. During the same quarter in the previous year, the business earned ($0.09) EPS.

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

• Palladyne reported record third-quarter revenue of $8.6 million, up 895% year over year and 48% sequentially, and raised the low end of its 2026 revenue guidance to $25 million while maintaining the $27 million top end.
• The Army gave SwarmOS its highest ratings across all nine performance criteria at Project Convergence Capstone 6, where it enabled one soldier to manage multiple autonomous drones from different vendors. Management said the field results advance the product toward procurement, though it offered no timing for awards.
• The components business gained traction, with record BRAIN flight-computer shipments, initial deliveries of the lower-cost FC-1, and a new order for components for 500 small drones. Management also cited new development customers, while noting that some opportunities are early and may not reach production.
• A partnership with industrial-automation leader FANUC is introducing Palladyne IQ to a broader set of manufacturers and potential applications. However, the cited customer opportunities have not yet generated revenue, and management cautioned that large-company sales cycles are long.
• Backlog fell 24% sequentially to $18.7 million, including $15.3 million funded, and management expects full-year operating cash burn to be at or slightly above its $32 million–$36 million range. Defense-budget uncertainty has delayed some funding and could affect contract timing, although Palladyne ended the quarter with $47 million in cash and marketable securities.

Palladyne AI Trading Down 1.9%

PDYN stock traded down $0.07 during trading on Thursday, hitting $3.39. The company had a trading volume of 277,845 shares, compared to its average volume of 2,220,458. The business has a 50 day moving average of $4.65 and a 200 day moving average of $5.98. The firm has a market capitalization of $167.41 million, a price-to-earnings ratio of -4.02 and a beta of 3.87. Palladyne AI has a fifty-two week low of $2.66 and a fifty-two week high of $10.00.

Wall Street Analysts Forecast Growth

PDYN has been the topic of several research reports. Weiss Ratings restated a “sell (d-)” rating on shares of Palladyne AI in a report on Friday, October 30th. Jefferies Financial Group lowered their price target on shares of Palladyne AI from $7.00 to $5.50 and set a “hold” rating for the company in a report on Wednesday. Three equities research 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. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $10.50.

Insider Activity at Palladyne AI

In other news, CTO Denis Garagic sold 17,255 shares of Palladyne AI stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $6.16, for a total value of $106,290.80. Following the transaction, the chief technology officer directly owned 990,798 shares of the company’s stock, valued at $6,103,315.68. This trade represents a 1.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Trevor Thatcher sold 4,636 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $6.16, for a total transaction of $28,557.76. Following the sale, the chief financial officer owned 319,602 shares in the company, valued at $1,968,748.32. This represents a 1.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 27,232 shares of company stock valued at $167,749 over the last 90 days. 13.40% of the stock is currently owned by corporate insiders.

About Palladyne AI

Palladyne AI Corp. develops artificial intelligence software designed to help robots and other machines operate more autonomously in complex, changing environments. Its technology is intended to enable systems to perceive their surroundings, learn tasks and adapt their actions, including in settings where tasks may be difficult to pre-program. The company offers the Palladyne™ IQ software platform, which is designed to work with robotic hardware and support applications across industrial and other sectors.