Palladyne AI (NASDAQ:PDYN) Announces Quarterly Earnings Results

Palladyne AI (NASDAQ:PDYN - Get Free Report) released its quarterly earnings results on Tuesday. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.16) by ($0.12), Zacks reports. Palladyne AI had a negative return on equity of 51.18% and a negative net margin of 358.04%.The firm had revenue of $3.54 million during the quarter, compared to analysts' expectations of $4.93 million.

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

• Revenue grew 107% YoY to $3.5M, backlog rose to approximately $17M after ~$7M in new awards, and management reiterated 2026 revenue guidance of $24M–$27M, implying a material ramp in H2.
• Management highlighted major operational validation — a live heterogeneous autonomous swarming demo (Gremlin‑X + Red Cat), two space‑domain engagements (AFRL HANGTIME, Portal), a new patent and invitations to Northern Strike and AFRL Relentless Wolfpack — signaling accelerating product adoption and partner interest.
• Operating cash usage in Q1 ran above the guided quarterly range (≈$10.2M vs $8–$9M expected), GAAP net loss was $12.6M, and full‑year cash burn is forecast at $32M–$36M despite $43.7M in liquidity, increasing near‑term funding sensitivity if revenue conversion delays persist.
• Manufacturing is underutilized (~30% capacity) and first‑article costs compressed current consolidated gross margin (~30%), but management expects margins to improve as backlog converts and higher‑margin software (SwarmOS/IntelliSwarm) revenue scales.

Palladyne AI Stock Up 5.2%

Palladyne AI stock opened at $6.46 on Thursday. The firm has a market cap of $300.33 million, a price-to-earnings ratio of -10.59 and a beta of 3.52. Palladyne AI has a 52 week low of $4.14 and a 52 week high of $13.00. The business's 50-day moving average price is $6.71 and its 200 day moving average price is $6.42.

Insiders Place Their Bets

In other Palladyne AI news, insider Stephen Sonne sold 6,802 shares of the company's stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $7.55, for a total value of $51,355.10. Following the sale, the insider owned 206,206 shares in the company, valued at approximately $1,556,855.30. This represents a 3.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CTO Denis Garagic sold 12,945 shares of Palladyne AI stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $7.55, for a total transaction of $97,734.75. Following the transaction, the chief technology officer directly owned 592,284 shares of the company's stock, valued at approximately $4,471,744.20. This trade represents a 2.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 27,396 shares of company stock worth $206,840. Corporate insiders own 13.40% of the company's stock.

Institutional Investors Weigh In On Palladyne AI

A number of institutional investors have recently modified their holdings of PDYN. Vanguard Group Inc. lifted its position in shares of 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 buying an additional 315,660 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Palladyne AI by 12.5% during the fourth quarter. Geode Capital Management LLC now owns 721,997 shares of the company's stock valued at $3,077,000 after purchasing an additional 80,075 shares in the last quarter. State Street Corp lifted its holdings in Palladyne AI by 24.4% during the fourth quarter. State Street Corp now owns 588,570 shares of the company's stock valued at $2,507,000 after purchasing an additional 115,409 shares in the last quarter. Millennium Management LLC grew its position in shares of Palladyne AI by 767.3% in the third quarter. Millennium Management LLC now owns 565,693 shares of the company's stock valued at $4,859,000 after purchasing an additional 500,472 shares during the period. Finally, Raymond James Financial Inc. grew its position in shares of Palladyne AI by 96.5% in the third 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. 26.02% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages recently weighed in on PDYN. Alliance Global Partners restated a "buy" rating on shares of Palladyne AI in a research note on Tuesday. Zacks Research upgraded Palladyne AI to a "hold" rating in a research note on Wednesday, April 8th. Wall Street Zen downgraded shares of Palladyne AI from a "hold" rating to a "sell" rating in a report on Saturday, March 7th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $7.00 price objective on shares of Palladyne AI in a research report on Wednesday. Finally, Lake Street Capital initiated coverage on shares of Palladyne AI in a research note on Friday, April 17th. They set a "buy" rating and a $11.00 price target on the stock. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $9.33.

Palladyne AI Company Profile

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.