Palladyne AI Shares Rise After Missile Subsystem Contract Announcement

Palladyne AI Corp. (NASDAQ:PDYN) shares are trading higher Tuesday after the company announced it is set to deliver a propulsion subsystem to a major U.S. defense contractor.

Missile Propulsion Subsystem Contract Awarded

Palladyne AI said it 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.

The company said it was selected based on its performance on defense programs, established manufacturing and delivery track record, and ability to meet accelerated timelines. Palladyne AI expects to complete contract deliverables by the end of the third quarter of 2026.

CEO Ben Wolff said the contract represents a step toward scaling defense manufacturing revenues and strengthens the company's relationship with the defense prime contractor. Wolff added the company believes it is positioned for potential additional revenue from the program over time.

Palladyne AI said the contract supports its strategy to deepen integration within the U.S. defense industrial base and expand participation in long-life-cycle missile programs.

Palladyne Shares Surge Higher

PDYN Price Action: At the time of publication, Palladyne shares are trading 16.57% higher at $7.95, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.