Palladyne AI reported preliminary second quarter 2026 revenue of approximately $5.8 million, representing a 480% increase year-over-year and 66% sequential growth from the first quarter. The defence and industrial technology company's backlog reached approximately $24 million as of 30 June, up from $17.3 million at the end of March. The company secured approximately $12.5 million in new contracts during the quarter across its operations. Palladyne AI expects to recognise the majority of its backlog as revenue over the next 12 to 18 months. Chief executive Ben Wolff highlighted a recent partnership with Israel Aerospace Industries, which grants Palladyne AI exclusive US rights to a family of loitering munition systems. The company maintained approximately $44 million in cash, cash equivalents and marketable securities as of quarter-end.

Palladyne AI has appointed retired Lt. Gen. Sean A. Gainey to its Defense Advisory Board. Gainey previously served as Commanding General of U.S. Army Space and Missile Defense Command and Commander of Joint Task Force-Gold, overseeing homeland integrated air and missile defence operations for Golden Dome. Gainey founded the Joint Counter-UAS Office and developed joint force doctrine for counter-drone operations. His appointment follows Palladyne AI's exclusive U.S. partnership with Israel Aerospace Industries to manufacture HARPY, HAROP and Mini HARPY loitering munition systems domestically, marking the first U.S.-produced portfolio of long-range loitering munitions available to the military. CEO Ben Wolff said Gainey's experience will help the company align its roadmap with operational requirements and engage more effectively with defence customers on autonomous systems and precision fires.

Palladyne AI has secured two US Army contracts to research, develop and operationally validate its SwarmOS autonomous swarm technology and Gremlin-X mini-bomber UAV. The contracts were competitively selected under the Army's Disruptive Applications Broad Agency Announcement. SwarmOS is an edge AI autonomy software stack enabling a single operator to command multiple autonomous unmanned systems from different manufacturers simultaneously. Gremlin-X is a reusable Group 2 strike UAV designed to deliver munitions with precision in denied or degraded environments. The company will demonstrate both technologies across US Army 4th Infantry Division exercises in Colorado and California, and at Northern Strike 26-2, a joint exercise involving over 9,000 participants. The demonstrations will evaluate SwarmOS in reconnaissance and target acquisition missions using the Army's Android Team Awareness Kit interface.