Palladyne AI shares surge 14.96% after-hours after securing $1M defense contract for missile propulsion subsystem with U.S. prime contractor.

Palladyne AI surged 14.96% in after-hours trading following the announcement of a contract to deliver a mission-critical propulsion subsystem for a U.S. missile program. The deal, valued at nearly $1 million in 2026, underscores the company’s ability to secure high-value defense contracts and aligns with its strategy to deepen integration within the U.S. defense industrial base. The CEO highlighted the contract as a step toward scaling defense manufacturing revenues and expanding participation in long-life-cycle programs, reinforcing investor confidence in the company’s growth prospects. The news, reported across multiple outlets, emphasized Palladyne AI’s proven performance in meeting demanding defense timelines and its focus on domestically produced, precision-manufactured components. The stock’s sharp rise reflects optimism over near-term revenue contributions and potential for future contract expansion.