Palladyne AI Corp. (PDYN) AI Stock Analysis

Palladyne AI Corp, originally established as Sarcos Technology and Robotics Corporation in 2017 and rebranded in March 2024, is a Salt Lake City software firm specializing in advanced technologies for stationary and mobile robotic systems. Its core Artificial Intelligence and Machine Learning software platform enables robots to observe, learn, reason, and execute tasks across structured and unstructured environments. By utilizing dynamic real-time operations, the software reduces the need for extensive programming or training, allowing robots to perceive surroundings autonomously and adapt to changing conditions across industrial manufacturing, logistics, defense, energy, and aerospace sectors.

Annual revenue swung from $5.1M in FY2021 to $14.6M in FY2022, before falling to $6.1M in FY2023, $7.8M in FY2024, and $5.2M in FY2025, reflecting a 5-year revenue CAGR of -9.9%. Gross margin stood at 48.7% in FY2025, down from 55.2% in FY2024. Operating margins remained deeply negative across historical years, including -617.7% in FY2025. Although net income reached $10.0M with diluted EPS of $0.22 in FY2025, trailing twelve month results showed an EPS of -$0.69 and an operating margin of -231.9% on revenue of $11.8M. For the latest quarter ended June 30, 2026, quarterly revenue grew 469.8% year-over-year.

As of June 30, 2026, the company held $43.7M in cash and short-term investments against total debt of $10.6M, resulting in net cash of $33.2M. Total assets were $94.4M, shareholders' equity stood at $70.8M, and the current ratio was 6.30 with a debt-to-equity ratio of 0.15. Free cash flow was -$28.4M in FY2025, while capital expenditures totaled $713,000. Over the past five years, the company's share count increased 100.4%.

At a market cap of $187.0M and an enterprise value of $235.5M, Palladyne AI Corp. trades at a forward P/E of 4.6x, compared to 18.8x for the median of its US-listed Technology peers. Its price-to-sales ratio of 15.8x and EV-to-revenue ratio of 19.9x are above the peer group median price-to-sales of 2.8x. Over the past year, the stock fell 57.9%, while the S&P 500 gained 16.8%. Over five years, the stock dropped 90.3% compared to an 83.0% gain for the S&P 500.

Wall Street analysts cover the stock with 3 Strong Buy ratings and 1 Hold rating. The mean price target is $10.75, representing an upside of 183.6% compared to the last close of $3.79 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $24.8M and EPS of -$0.93. For the next fiscal year, 3 analysts project revenue of $40.0M and EPS of -$0.73. Palladyne AI Corp. beat EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for November 11, 2026.

This page is an AI-written research summary of Palladyne AI Corp. (PDYN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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