Palladyne AI Corp (NASDAQ:PDYN) shares are up on Thursday following the company’s announcement of a strong revenue outlook for 2026.

The stock’s rise comes as the company reported a projected revenue growth of 357% to 415% year-over-year, which is contributing positively to investor sentiment amidst broader market trends.

Palladyne AI is a U.S.-based technology company developing embodied artificial intelligence, collaborative autonomy solutions, advanced avionics, autonomous systems, advanced UAV engineering services, and precision-manufactured components for defense and industrial markets.

Clocks 118% Jump In Sales

Palladyne AI reported a fourth-quarter adjusted loss of 16 cents, missing the consensus loss of 14 cents per share.

The company’s sales reached $1.66 million, up 118% year over year, beating the consensus of $809 thousand.

Sales Outlook For 2026

Palladyne AI reiterated its full-year 2026 revenue guidance of $24 million to $27 million, indicating significant growth compared to the previous year’s revenue of $5.2 million.

The company also reported a backlog of nearly $18 million, which has increased by more than 30% since the end of 2025, supporting its optimistic revenue projections.

In addition to the financial highlights, Palladyne AI has made strides in expanding its capabilities through recent acquisitions and product launches. The company launched Palladyne IQ 2.0 and signed its first customer for this product, enhancing its position in the defense and industrial technology sectors.

Aligns With Evolving War Priorities

“2025 was a year of operational validation that culminated in structural transformation…We exited 2025 as a fundamentally different company, with expanded backlog, deeper defense engagement, and an integrated autonomy-to-manufacturing stack aligned with evolving Department of War priorities,” commented Ben Wolff, President and CEO of Palladyne AI.

The broader market experienced declines on the previous trading day, with the S&P 500 down 0.41% and the Nasdaq down 0.49%. Palladyne AI’s gains stand out against this backdrop, suggesting that the stock is moving independently of the broader market trends.

In February, Palladyne AI secured a contract to deliver a key, mission-critical subsystem supporting missile propulsion for an existing U.S. missile system program.

The company said the contract is expected to contribute nearly $1 million in revenue, with all revenue anticipated to be recognized in 2026.

Palladyne AI Technical Analysis

Currently, Palladyne AI is trading at $8.60, which positions it 15.75% higher than its previous close.

The stock is trading above its 52-week low of 4.14 but remains significantly below its 52-week high of $13.00, indicating potential for recovery.

PDYN Price Action: Palladyne AI shares were up 24.06% at $9.23 at last check on Thursday, according to Benzinga Pro data.

Image: Shutterstock