Palladyne AI (NASDAQ:PDYN) Releases Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Palladyne AI posted a quarterly loss of $0.25 per share, missing estimates by $0.01, while revenue of $8.56 million exceeded the $7.54 million consensus estimate.
• Third-quarter revenue reached a record, up 895% year over year; the company raised the low end of its 2026 revenue guidance to $25 million and kept the high end at $27 million.
• Army testing gave its SwarmOS system top ratings across nine criteria, but backlog fell 24% sequentially to $18.7 million. Palladyne expects operating cash burn at or above its $32 million–$36 million range, and ended the quarter with $47 million in cash and marketable securities.

Palladyne AI (NASDAQ:PDYN - Get Free Report) announced its earnings results on Tuesday. The company reported ($0.25) EPS for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.01), Zacks reports. Palladyne AI had a negative net margin of 254.75% and a negative return on equity of 53.29%. The business had revenue of $8.56 million during the quarter, compared to analyst estimates of $7.54 million. During the same period in the previous year, the firm earned ($0.09) earnings per share.

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 Stock Performance

Palladyne AI stock traded up $0.68 during mid-day trading on Tuesday, reaching $4.21. 3,659,900 shares of the company were exchanged, compared to its average volume of 2,222,113. Palladyne AI has a twelve month low of $2.66 and a twelve month high of $10.00. The firm's 50-day simple moving average is $4.74 and its two-hundred day simple moving average is $6.02. The firm has a market cap of $207.97 million, a PE ratio of -6.17 and a beta of 3.87.

Insider Buying and Selling at Palladyne AI

In other news, CTO Denis Garagic sold 17,255 shares of the company's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $6.16, for a total transaction of $106,290.80. Following the completion of the sale, the chief technology officer owned 990,798 shares in the company, valued at $6,103,315.68. This represents a 1.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Trevor Thatcher sold 4,636 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $6.16, for a total value of $28,557.76. Following the sale, the chief financial officer directly owned 319,602 shares of the company's stock, valued at approximately $1,968,748.32. This represents a 1.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 27,232 shares of company stock worth $167,749. 13.40% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a "sell (d-)" rating on shares of Palladyne AI in a research report on Friday, October 30th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $11.00.

Palladyne AI Company Profile

Palladyne AI Corp. develops artificial intelligence software designed to help robots perceive their surroundings, learn from experience and perform complex physical tasks with greater autonomy. Its technology is intended to enable robots to operate in dynamic, unstructured environments while reducing the need for detailed task-by-task programming.

The company's software platform, Palladyne IQ, uses machine learning, computer vision and related AI capabilities to support robotic perception, decision-making and control.

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