By Connor Hart

Shares of Palladyne AI climbed after the company raised its revenue outlook for the year, in part citing growing demand and the integration of recent acquisitions.

The stock rose 14% to $7.17 in premarket trading Tuesday. Through Monday's close, shares had lost roughly one-third of their value over the prioryear.

The defense and industrial-technology company before the bell said full-year revenue is now projected to come in between $24 million and $27 million, compared with a prior outlook for about $24 million.

Palladyne said the new outlook is supported by new contracts, increasing customer activity and the successful integration of recently acquired operations, all of which are expected to result in as much as a roughly fivefold increase in revenue from last year.

Chief Executive Ben Wolff said the company has reached an inflection point, moving beyond the capability-building phase to the execution phase, with active customers, expanding backlog and a line of sight to revenue growth.

Palladyne had a backlog of more than $13 million as of the end of 2025, up from about $10 million in November, it said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

January 13, 2026 08:07 ET (13:07 GMT)

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