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

Palladyne AI (NASDAQ:PDYN) released its quarterly earnings data on Tuesday. The company reported ($0.25) earnings per share (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 firm had revenue of $8.56 million for the quarter, compared to analyst estimates of $7.54 million. During the same period in the previous year, the business posted ($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 Up 11.8%

NASDAQ PDYN traded up $0.42 during trading on Tuesday, reaching $3.96. The company’s stock had a trading volume of 3,862,749 shares, compared to its average volume of 2,222,840. The stock has a market capitalization of $195.24 million, a PE ratio of -6.01 and a beta of 3.87. Palladyne AI has a 1-year low of $2.66 and a 1-year high of $10.00. The business has a 50-day moving average price of $4.74 and a 200-day moving average price of $6.02.

Insider Transactions at Palladyne AI

In other news, CTO Denis Garagic sold 17,255 shares of the firm’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $6.16, for a total transaction of $106,290.80. Following the transaction, the chief technology officer owned 990,798 shares in the company, valued at approximately $6,103,315.68. This trade represents a 1.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Trevor Thatcher sold 4,636 shares of Palladyne AI stock in a transaction 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 completion of the sale, the chief financial officer directly owned 319,602 shares of the company’s stock, valued at approximately $1,968,748.32. The trade was a 1.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 27,232 shares of company stock worth $167,749 in the last 90 days. 13.40% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

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

About Palladyne AI

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.