Palladyne AI Corp(PDYN)
$3.24-0.22 (-6.36%)
PDYN
Palladyne AI Corp earnings date
$3.24
At close:-0.22 (-6.36%)
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Palladyne AI Corp (PDYN) Q3 2026 Earnings Report
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PDYN Q3 2026 EPS Results
- Actual EPS
- -$0.25
- Consensus EPS
- -$0.25
- Beat/Miss
- Missed by -$0.01
- One Year Ago EPS
- -$0.09
PDYN Q3 2026 Revenue Results
- Actual Revenue
- $8.56M
- Expected Revenue
- $7.54M
- Beat/Miss
- Beat by +$1.02M
- YoY Revenue Growth
- +895.00%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/10/2026
- Time
- Before Open
- Conference Call
- Tuesday, November 10, 2026
PDYN Upcoming Earnings
Palladyne AI Corp's next earnings date is estimated for March 30, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
PDYN Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call had strongly positive operational and commercial momentum, highlighted by record revenue, 895% year-over-year growth, raised revenue guidance, 44% gross margin, top Army ratings for SwarmOS, record BRAIN shipments, expanding partnerships, and backlog 35% above year-end. The principal negatives were widening losses, elevated cash burn expected to be at or slightly above the high end of guidance, a 24% sequential backlog decline, and uncertainty around defense budgets, procurement timing, and the conversion of early-stage opportunities into revenue. Overall, the positive achievements and outlook outweighed the stated challenges.
Company Guidance
Palladyne AI raised the bottom of its full year 2026 revenue guidance to $25 million and reiterated the top end of $27 million, representing roughly 377% to 415% growth over 2025 revenue of $5.2 million; it expects organic growth across each part of the company, full year operating cash burn to come in at or slightly above the high end of its $32 million to $36 million range, and Q4 operating cash burns to be below the year-to-date quarterly average through increased revenue and gross margin performance compared to the first half of the year. The company continues to expect the majority of its current backlog to convert to revenue over the next 12 to 18 months and expects its 2026 growth to extend into 2027.
- Record Third-Quarter Revenue and Raised GuidanceThird-quarter revenue reached a record $8.6 million, up 895% from $900,000 a year ago and up 48% sequentially from the second quarter. Palladyne raised the low end of its full-year 2026 revenue guidance to $25 million while reiterating the top end of $27 million, representing roughly 377% to 415% growth over 2025 revenue of $5.2 million.
- Broad Revenue Contribution Across Business LinesThird-quarter product revenue was $3.4 million, engineering services revenue was $2.4 million, and AI product development contract revenue was $2.8 million. Components revenue grew 26% sequentially, while government contract revenue increased 135% sequentially.
- Improved Gross MarginConsolidated gross margin was 44% in the third quarter, up from 29% in the second quarter, as new programs came online and higher product revenue was generated through existing manufacturing capacity and BRAIN order fulfillment.
- SwarmOS Earned Top Army RatingsDuring Project Convergence Capstone 6, SwarmOS enabled multi-drone, multi-vendor autonomous operations managed by a single soldier with minimal training. The Army evaluated SwarmOS against nine key performance criteria and gave it the highest ratings possible on all nine.
- Expansion of Real-World Defense ExercisesPalladyne followed Project Convergence Capstone 6 with the Northern Strike 2026 exercise at Camp Grayling, Michigan, continuing a series of Department of War exercises that began with Ivy Mass. Management said these exercises are building an operational track record and progressing from free demonstrations to paid exercises and ultimately procurement.
- Expansion Across Drone Platforms and MissionsPalladyne entered its first fixed-wing UAV partnership with Orkid Tech, extending Palladyne Pilot and SwarmOS to NDAA-compliant Group 2 fixed-wing VTOL drones for defense and commercial applications. The company also partnered with NORDA Dynamics to combine SwarmOS with the Underdog module for multi-target engagement in environments affected by GPS and communications jamming, with human authorization for each engagement.
- Launch of SwarmShot Counter-UAS SolutionAfter quarter end, Palladyne, Federal Ammunition, and Mossberg launched joint development of SwarmShot, a modular reusable kinetic solution designed to defeat incoming enemy drones. The solution combines purpose-built ammunition, an airborne weapon module, and SwarmOS, initially as a Gremlin-X mission add-on followed by a planned integration kit for compatible third-party drones.
- BRAIN Flight Computer MomentumBRAIN was selected as a finalist in the Army's FUZE xTech Apex Intercept competition, an evaluation pathway focused on low-cost interceptors and fire control. BRAIN provides guidance, navigation, and control at roughly one-tenth the weight and cost of legacy avionics, and Palladyne shipped more BRAIN flight computers in the third quarter than ever before, including the first BRAIN FC1 units.
- New BRAIN and Engineering Services CustomersPalladyne began supporting two new development customers: one developing an interceptor missile and another developing a heavy-lift multi-rotor platform that plans to use BRAIN and could also be a candidate for SwarmOS. Management stated that both programs are early and are not guaranteed to reach production.
- Expansion Into Small UAV ComponentsPalladyne delivered precision machine components for a new customer's initial order of 500 small drones. Management identified emerging opportunities in high-volume, lower-cost UAV components and said domestic production of drone components is receiving increased focus.
- IAI Loitering-Munition Partnership ProgressPalladyne continued its partnership with Israel Aerospace Industries after securing exclusive U.S. rights to Americanize, manufacture, integrate, and market the HARPY, HAROP, and Mini HARPY loitering munitions for the Department of War. Management said the partnership has gained visibility and attracted interest from key constituents.
- Fanuc Collaboration Expands Commercial ReachPalladyne announced a strategic collaboration with Fanuc, which has more than 40 million robots installed worldwide. Palladyne IQ's Scan to Path software is intended to help robots recognize parts, understand their orientation, and generate task paths, and the collaboration has placed Palladyne's software in front of manufacturing companies ranging from Fortune 500 companies to small and mid-sized businesses.
- Commercial Customer Pipeline and Use CasesFanuc featured Palladyne at its Customer Day in August and selected Palladyne IQ for its FABTECH booth in October. Potential applications include grinding hundreds of tack welds per unit, handling ceiling seams, and creating digital-twin environments so welding robots can be programmed offline.
- Backlog Remains Above Year-End LevelBacklog ended the quarter at $18.7 million, including $15.3 million funded. Although backlog declined during the quarter as $8.6 million of revenue was recognized, Palladyne signed $2.7 million of net new contracts, and backlog was up $4.8 million, or 35%, from year-end. The company expects the majority of current backlog to convert to revenue over the next 12 to 18 months.
- Liquidity and Capital Structure ImprovementPalladyne ended the quarter with $47 million in cash, cash equivalents, and marketable securities, up $3.3 million from the end of the second quarter, and had no long-term debt. The company raised $29 million in net proceeds under its ATM during the first nine months at an average price of $6.53 per share, with approximately $12.6 million remaining available. The expiration of 20.5 million warrants and 2.3 million contingent merger consideration shares reduced the fully diluted share count by over 9%.
- Expected Fourth-Quarter Cash Burn ImprovementManagement said strong third-quarter revenue led to a decrease in operating cash burn and expects fourth-quarter operating cash burn to be below the year-to-date quarterly average as revenue and margins improve.
- Expected Growth Into 2027Management said it expects 2026 growth to extend into 2027 and expressed confidence that Palladyne is in the right place at the right time. Management also said autonomy and collaborative autonomous systems remain a key area of focus and future investment across both political parties.
- Defined SwarmOS Pricing FrameworkPalladyne said it is focused on pricing SwarmOS at 10% of total platform cost, including examples of $300 for a $3,000 drone and $3,000 for a $30,000 drone. Management said direct end users had not indicated that this pricing structure was unreasonable, while also noting that the company does not yet have large contracts using the pricing model.
PDYN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 30, 2027 | 2026 (Q4) | -0.23- | -0.04 | ― | ― |
| Nov 10, 2026 | 2026 (Q3) | -0.24-0.25 | -0.09 | -177.78% (-0.16) | |
| Aug 06, 2026 | 2026 (Q2) | -0.23-0.27 | -0.2 | -36.36% (-0.07) | |
| May 05, 2026 | 2026 (Q1) | -0.17-0.28 | 0.55 | -150.91% (-0.83) | |
| Mar 05, 2026 | 2025 (Q4) | -0.09-0.04 | -1.98 | 97.98% (+1.94) | |
| Nov 12, 2025 | 2025 (Q3) | -0.18-0.09 | -0.27 | 66.67% (+0.18) | |
| Aug 06, 2025 | 2025 (Q2) | -0.20-0.20 | -0.2 | 1.00% (+0.00) | |
| May 07, 2025 | 2025 (Q1) | 0.550.55 | -0.28 | 297.13% (+0.83) | |
| Feb 20, 2025 | 2024 (Q4) | -1.98-1.98 | -1.41 | -40.43% (-0.57) | |
| Nov 13, 2024 | 2024 (Q3) | ―-0.27 | -0.66 | 59.09% (+0.39) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
