Palladyne AI revenue jumps 480% on defense contract growth
The company reported preliminary second-quarter revenue of approximately $5.8 million.
Palladyne AI (PDYN) reported a significant increase in preliminary second-quarter revenue, marking a period of rapid scaling for the defense technology provider.
The results reflected a sharp acceleration in commercial momentum, driven by a surge in new contract awards and the expansion of its hardware footprint within defense prime programs.
Preliminary revenue for the quarter was approximately $5.8 million, a 480% increase from the $1.0 million reported in the second quarter of 2025. This figure also represented a 66% sequential increase from the $3.5 million recorded in the first quarter of 2026.
Growth was supported by an increase in new business, as the company added approximately $12.5 million in gross new contracts during the second quarter. This followed approximately $7 million in new contract awards in the prior quarter. Consequently, the company's backlog grew to approximately $24.0 million as of June 30, 2026, up from $17.3 million at the end of March and a 1312% increase compared to the $1.7 million backlog in the second quarter of 2025.
Product adoption shifted toward larger scale deployments during the period. Palladyne AI reported its first large purchase of the BRAIN flight computer by a defense prime for a counter-UAS system. This followed smaller follow-on orders of approximately $500,000 for the X2 variant in the first quarter.
Strategic expansion continued in June 2026 through a partnership with Israel Aerospace Industries. The agreement granted Palladyne AI exclusive U.S. rights to manufacture, integrate, and market the HARPY, HAROP, and Mini HARPY loitering munition systems.
Cash, cash equivalents, and marketable securities remained roughly flat at approximately $44.0 million as of June 30, 2026, compared to $43.7 million as of March 31, 2026.