Palladyne AI (NASDAQ:PDYN) saw its shares surge more than 32% to almost $10 per share on Thursday as it reported fourth quarter revenue growth that exceeded expectations.
Revenue for the quarter reached $1.66 million, up 118% year over year and well above analyst expectations of $809,000.
The company posted an adjusted loss of $0.16 per share, slightly wider than the consensus estimate of a $0.14 loss.
For the full year 2025, Palladyne AI reported revenue of $5.2 million, down from $7.8 million in 2024. GAAP net income for 2025 was $10 million, or $0.24 per share, compared with a net loss of $72.6 million, or $2.71 per share, in the previous year. On a non-GAAP basis, the company reported a net loss of $25.2 million, or $0.60 per share.
Palladyne AI ended 2025 with a backlog of $13.5 million, which has grown to nearly $18 million as of mid-February 2026.
The company reiterated its full-year 2026 revenue guidance of $24 million to $27 million, implying growth of 357% to 415% over last year. Management cited recent contract wins, acquisitions, and expanded program activity in defense and aerospace as supporting factors for the guidance.
The company highlighted strategic initiatives over the past year, including the launch of Palladyne Defense, commercialization of Palladyne IQ 2.0, and structural repositioning following acquisitions in November 2025, positioning it for execution in 2026.
“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,” Palladyne AI CEo Ben Wolff said.