Palladyne AI shares surge 11.58% premarket after securing $1 million missile propulsion contract with U.S. defense prime.

Palladyne AI surged 11.58% in premarket trading following the announcement of a contract to deliver a mission-critical propulsion subsystem for a U.S. missile system program. The $1 million revenue contribution in 2026 reinforces the company’s strategy to deepen integration into long-life-cycle defense programs and strengthens its relationship with a major prime contractor. CEO Ben Wolff emphasized the win as a milestone for scaling defense manufacturing revenues and validating the company’s ability to meet demanding timelines with precision-manufactured components. The contract, expected to deliver by late Q3 2026, underscores Palladyne AI’s positioning in critical national security platforms and aligns with broader efforts to expand its presence in aerospace and industrial autonomy. The news, coupled with recent expansion into space and industrial domains, has bolstered investor confidence in the firm’s growth trajectory.