Palladyne AI shares surge 18.64% after-hours after achieving IntelliSwarm flight milestone and securing U.S. missile propulsion contract.

Palladyne AI surged 18.64% in after-hours trading following the announcement of a successful flight test of its IntelliSwarm autonomy stack and a new U.S. missile propulsion subsystem contract. These defense-focused updates, coupled with raised 2026 revenue guidance to $24–$27 million, signaled renewed investor confidence in the company’s growth trajectory. The breakthrough flight milestone and contract win highlight Palladyne’s expanding role in autonomous systems and mission-critical defense technologies, aligning with broader U.S. military modernization priorities. Analysts noted that while the stock had recently faced a pullback, these developments reinforce its positioning in high-growth sectors, with some narratives suggesting undervaluation at current levels.