Palladyne AI

What Palladyne AI does

Palladyne AI Corp. (NASDAQ: PDYN), successor to Sarcos Technology and Robotics Corporation and headquartered in Salt Lake City, Utah, is a public defense and industrial technology company that builds embodied AI software for machines that must operate in environments where cloud-dependent AI cannot function, such as GPS-denied airspace, communications-contested battlefields, and unstructured factory floors. The company's core technology is its Decentralized Embodied Collaborative Autonomy (DECA) architecture, a proprietary edge-AI platform that runs on its BRAIN X2 flight computer and powers four branded software products: Palladyne IQ for industrial robots and cobots, Palladyne Pilot for tactical UAVs, SwarmOS for multi-agent heterogeneous swarming, and IntelliSwarm as the integrated plug-and-fight autonomy stack. Palladyne extends this software layer into two product families: its own UAS platforms (SwarmStrike autonomous weapon system and Gremlin-X reusable mini-bomber) and the HARPY/HAROP/Mini HARPY loitering munition family, which it manufactures and markets under exclusive U.S. rights from Israel Aerospace Industries.

The company's business model combines software licensing (Palladyne IQ 2.0 released commercially in January 2026 under multi-year, quote-based contracts), defense government contracts awarded through competitive procurement (U.S. Army Disruptive Applications BAA awards, U.S. Navy ALRRM hypersonic missile program, AFRL HANGTIME and Relentless Wolfpack), hardware and subsystem sales (BRAIN X2 flight computers, propulsion subsystems delivered to a major U.S. defense prime), manufacturing and royalty income from the IAI partnership, and engineering services delivered through its GuideTech subsidiary. In November 2025 Palladyne AI completed a $31 million acquisition of GuideTech, Warnke Precision Machining, and MKR Fabricators, creating the Palladyne Defense division as a vertically integrated U.S. manufacturing base (AS9100D and ISO 9001:2015 certified, ITAR registered) and a Palladyne Manufacturing division. Revenue was $5.2 million in FY2025 (a 33% YoY decline), with Q1 2026 revenue of $3.5 million (up 107% YoY), an ~$17-18 million backlog as of early 2026, and full-year 2026 guidance of $24-27 million supported by the acquisitions and new defense contract awards.

Name

Palladyne AI

Legal name

Palladyne AI Corp.

Website

https://palladyneai.com

Company type

Public

Founded year

2024

Operating status

Operating

Headcount range

51–100 employees

Short description

Palladyne AI is a U.S.-based public defense and industrial technology company that sells embodied AI software (Palladyne IQ, Palladyne Pilot, SwarmOS) and loitering munitions (under exclusive IAI license) to the U.S. Department of War, defense primes, and industrial enterprises with robot fleets.

Ownership category

akta.pro rank

Product category

Autonomous Systems AI Software

NAICS

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing (334511), Guided Missile and Space Vehicle Manufacturing (336414), Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing (336419), Computer Systems Design and Related Services (54151)

SIC

Search, Detection, Navagation, Guidance, Aeronautical Sys (3812), Guided Missiles & Space Vehicles & Parts (3760), Services-Computer Integrated Systems Design (7373)

akta.pro primary industry

Autonomy Software, AI & Mission Management (UAS/UXV) (IMABAIAH)

akta.pro secondary industries

VTOL & Hybrid UAV Platforms (IMABAIAC), Agents & Autonomous Workflows (Tool Use, Planning, Multi-Agent) (HDAAACAF), Robot Software, Autonomy Stacks & Simulation (ROS, digital twins) (HDAAAIAK), Autonomous Defense Systems (AI/ML, Swarming, MUM-T) (IMABAOAI), Autonomous Flight Control & Guidance Systems (UAS/Urban Air Mobility) (IMABAFAO)

Keywords

• Embodied AI software
• Autonomous drone swarms
• Loitering munitions
• Defense robotics AI
• Industrial automation AI

Headquarters

HQ city

Salt Lake City

HQ country

United States

HQ region

North America

Offices4 records

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Operations, Supply Chain, Marketing or Sales, Infrastructure

Revenue model

1. Software Licensing (Palladyne IQ, Palladyne Pilot, SwarmOS, IntelliSwarm): License-based revenue from the company's embodied AI software platforms for industrial robots, drones, and autonomous systems. Palladyne IQ 2.0 commercially released in January 2026 as next-generation industrial autonomy software for defense and industrial factories with a low-code/no-code framework.
2. Defense Government Contracts: Direct revenue from U.S. federal contracts including U.S. Army Disruptive Applications Broad Agency Announcement contracts, U.S. Navy ALRRM missile program, Air Force Research Laboratory programs, and other Department of War procurement. Backlog of ~$17-18 million as of early 2026, with 2026 revenue guidance of $24-27 million.
3. Hardware and Subsystem Sales: Revenue from sale of BRAIN X2 flight computers, propulsion subsystems, precision-machined components (Warnke Precision Machining), and fabricated assemblies (MKR Fabricators). Notable contract includes nearly $1 million in 2026 revenue from a missile propulsion subsystem delivered to a major U.S. defense prime.
4. Manufacturing and Royalty Income (IAI Partnership): Per the exclusive U.S. partnership with Israel Aerospace Industries, Palladyne AI will pay IAI a market-rate royalty on system sales of HARPY, HAROP, and Mini HARPY loitering munitions manufactured and marketed to the U.S. Department of War. Partnership structured for up to ten years subject to milestone achievement. Palladyne will also establish domestic manufacturing capability at its own expense.
5. Engineering Services: Aerospace engineering design services delivered through GuideTech, providing flight software, avionics, GNC design, simulation, and digital engineering for defense and space programs to primes, system integrators, and program offices.
6. Space Domain Contracts: Revenue from space industry contracts including the AFRL HANGTIME award and Portal Space Systems contract for navigation, guidance, spacecraft modeling, embedded software, and avionics support for next-generation maneuverable spacecraft platforms.

Pricing tiers

Go-to-market motion5 records

Distribution channels5 records

Core offering

Palladyne AI develops and sells embodied AI software platforms — Palladyne IQ for industrial robots, Palladyne Pilot for UAVs, and SwarmOS for multi-agent swarming — that enable autonomous, on-device operation in GPS-denied and communications-contested environments. The company also operates a vertically integrated Palladyne Defense division manufacturing loitering munitions (HARPY, HAROP, Mini HARPY under IAI license), developing autonomous weapon systems (SwarmStrike, Gremlin-X), delivering aerospace engineering services (GuideTech), and running U.S.-based precision machining and fabrication facilities.

Product overview

Palladyne AI is a U.S.-based defense and industrial technology company that operates a unified embodied AI platform — branded as the DECA (Decentralized Embodied Collaborative Autonomy) architecture — deployed across two integrated business lines: Aerospace & Defense and Industrial Automation. The platform is composed of a shared edge-AI software layer (Palladyne IQ for industrial robots, Palladyne Pilot for UAVs, and SwarmOS for multi-agent swarming) running on a proprietary edge compute module (BRAIN X2), which together power the integrated IntelliSwarm autonomy suite. These software capabilities feed directly into the company's UAS product family (SwarmStrike autonomous weapon system and Gremlin-X reusable mini-bomber) and the IAI-licensed loitering munitions line (HARPY, HAROP, Mini HARPY). Through its 2025 acquisitions, Palladyne AI extended this platform into a vertically integrated defense technology business: the Palladyne Defense division (incorporating acquired subsidiary GuideTech for engineering services and avionics), the Palladyne Manufacturing division (Warnke Precision Machining and MKR Fabricators for U.S.-based precision manufacturing), and the IAI partnership for exclusive U.S. production and marketing of combat-proven loitering munition systems. All products share the same on-device, cloud-free intelligence layer enabling GPS-denied and communications-degraded operation across defense, public safety, and industrial markets.

Differentiator

Problem solved

Functional benefit

Brands

• Palladyne IQ: Closed-loop AI/ML autonomy software platform that provides human-like reasoning capabilities for industrial robots and cobots.
• Palladyne Pilot
• SwarmOS
• IntelliSwarm
• SwarmStrike
• Gremlin-X
• Mini HARPY
• HARPY
• HAROP
• BRAIN X2
• Palladyne Manufacturing

Products and services

• Palladyne IQ Closed-loop AI/ML autonomy software platform that provides human-like reasoning capabilities for industrial robots and cobots, enabling perception of variations and dynamic adaptation in unstructured environments via an Observe → Learn → Reason → Act cycle with low-code/no-code training requiring 1-5 demonstrations per task.
• Palladyne Pilot Closed-loop autonomous detection, tracking, and control software platform for tactical UAV missions, enabling a network of collaborating drones and multi-modal sensors to self-orchestrate ISR, perimeter security, reconnaissance, and surveillance operations with edge-native, GPS-denied capable intelligence.
• SwarmOS Patented swarming and autonomy software enabling multiple autonomous systems (drones, robots, sensors) to work together as an intelligent, coordinated, self-organizing heterogeneous swarm via feature-based communication in a decentralized architecture.
• BRAIN X2 Proprietary advanced edge-AI flight computer and avionics module for autonomous and semi-autonomous UAV platforms, fusing high-performance avionics, AI/ML compute, and multi-sensor perception into a single compact module engineered for contested, GPS-denied, and communication-limited environments.
• IntelliSwarm Combines SwarmOS collaborative swarming software with the BRAIN X2 edge-AI flight module to create a fully integrated plug-and-fight autonomy suite with Weapons Open Systems Architecture (WOSA) compatibility for distributed mission autonomy across multi-vendor UAVs.
• SwarmStrike Next-generation autonomous weapons platform powered by GuideTech BRAIN avionics system with ScavengerNav™ suite for GPS-denied operation, configured for launch from air, ground, and maritime platforms with mesh-networked collaborative swarming capability; operationally validated at U.S. Army Ivy Mass exercise (June 2026).
• Gremlin-X Next-generation reusable mini-bomber loitering munition for precision engagement in GPS- and communications-denied environments, with compact design, low-cost architecture, and integrated AI/ML avionics enabling repeatable missions; operationally validated at U.S. Army Ivy Mass exercise (June 2026).
• Mini HARPY AR/EO dual-seeker loitering munition manufactured and marketed by Palladyne AI under exclusive U.S. license from Israel Aerospace Industries, featuring 100km operational range, 50kg weight, 7kg warhead, and at least 80 minutes endurance; canister launched from ground or naval platforms.
• HARPY Anti-radiation loitering munition manufactured and marketed by Palladyne AI under exclusive U.S. license from Israel Aerospace Industries, dedicated to suppression and destruction of enemy air defenses (SEAD/DEAD) with autonomous targeting and deep strike missions lasting up to 9 hours.
• HAROP Long-range, EO-guided combat-proven loitering munition manufactured and marketed by Palladyne AI under exclusive U.S. license from Israel Aerospace Industries, designed to hunt high-value targets such as unmanned surface vessels, command posts, supply depots, tanks, and air defense systems with 9 hours of endurance and human-in-the-loop supervision.
• GuideTech Engineering Services Aerospace engineering design services delivered through subsidiary GuideTech, providing multidisciplinary aerospace design expertise including flight software, avionics, and guidance, navigation, and control (GNC) design services for defense and space programs.
• Palladyne Manufacturing U.S.-based manufacturing group comprising Warnke Precision Machining (AS9100D CNC turning, milling, grinding, boring) and MKR Fabricators (heavy fabrication, large-scale welding, CNC machining in 65,000 sq ft facility, AS9100D and ISO 9001:2015 certified, ITAR registered).

Quantifiable outcome

• 107% YoY revenue growth in Q1 2026 ($3.5M)
• +7 more outcomes

Named customers9 records

Ideal customer profiles6 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration6 records

AI capability13 records

Feature8 records

Partnerships

Eight partnerships are on record, tiered flagship, minor and core.

• Israel Aerospace Industries (IAI) - HARPY Family IntegrationflagshipStrategic or Co-development Partner · 17 June 2026Beyond the manufacturing/marketing license, the companies will collaborate to integrate Palladyne's SwarmOS AI platform into the HARPY family loitering munition systems, enabling autonomous swarm operations and information sharing among multiple platforms. Jointly targeting the U.S. Army Long Range Precision Munitions program as the primary integration opportunity.
• A.I. AutomationminorImplementation/ SI/ Consulting Partner · 11 June 2026Joint presentation at the IMTS 2026 Conference on how embodied AI enables robotic systems to improve safety and productivity in hazardous manufacturing finishing environments. Matthew Muta of Palladyne AI and Michael Kreps of A.I. Automation co-presented on safety-certified, explosion-proof robotic systems enhanced with adaptive AI software for paint booths and high-mix finishing operations.
• Israel Aerospace Industries (IAI)flagshipOEM/ Whitelabel/ Licensing Partner · 8 June 2026Exclusive U.S. rights granted to Palladyne AI to manufacture, integrate, and market IAI's combat-proven HARPY, HAROP, and Mini HARPY loitering munition systems to the U.S. Department of War. Partnership structured as a memorandum of understanding for up to ten years subject to milestone achievement. Palladyne AI will establish domestic manufacturing capability at its own expense, adapt the systems to U.S. operational requirements, and pay IAI a market-rate royalty on system sales. IAI will provide engineering support and key subsystems from its Tel Aviv operations. The partnership targets the U.S. Army Long Range Precision Munitions program with a prototype Other Transaction Agreement anticipated in October 2026 valued $100-200 million.
• Air Force Research Laboratory (AFRL) - Relentless Wolfpack CohortcoreStrategic or Co-development Partner · 28 April 2026GuideTech (Palladyne AI subsidiary) selected as one of 14 companies to participate in the Air Force Research Laboratory's Relentless Wolfpack Industry Day (April 28-29, 2026), an invite-only event focused on accelerating networked collaborative autonomous weapon systems. GuideTech will present its flight-tested SwarmStrike cruise missile alongside Palladyne's SwarmOS collaborative autonomy software as an integrated open-standards platform capable of networked salvos in contested battlespaces. The participation represents a strategic inflection point offering direct engagement with AFRL program managers and a potential pathway toward defense contracts and programs of record.
• Portal Space SystemscoreStrategic or Co-development Partner · 20 January 2026Contract for GuideTech (Palladyne AI subsidiary) to support development of next-generation maneuverable spacecraft platforms, providing navigation, guidance, spacecraft modeling, embedded software, and avionics support. Marks Palladyne AI's strategic expansion into the space domain, positioning it as a trusted autonomy partner for civil, defense, and commercial space missions. Portal Space Systems emerged from stealth in 2024 and raised one of the sector's largest seed rounds, designing re-deployable spacecraft requiring rapid autonomous decision-making.
• Draganfly Inc.coreTechnology or Integration · 21 October 2025Collaboration to integrate Palladyne Pilot AI software into Draganfly's UAV platforms, enabling autonomous swarm operations and intelligence capabilities. Partnership aims to enhance mission flexibility and autonomous coordination for defense, government, and commercial applications, with deployment subject to government approvals outside the U.S. In March 2026 the companies achieved an integration milestone validating SwarmOS across Draganfly drone components in flight simulation, with plans to pursue U.S. military programs.
• KUKAcoreTechnology or Integration · 21 July 2025Selected to demonstrate Palladyne IQ software platform at KUKA Connexions conference (July 21-23, 2025) in Palm Beach, Florida. The demonstration enabled KUKA robots to autonomously perform machine tending operations with human-like reasoning capabilities. Companies announced plans to deepen their technology partnership as Palladyne AI positions itself as a KUKA technology partner offering platform-agnostic AI software for industrial robots and cobots.
• Red Cat HoldingscoreTechnology or Integration · 3 May 2025Successfully completed an autonomous, cross-platform drone operation integrating Red Cat's Teal 2 and Black Widow drones with Palladyne Pilot AI software. The test demonstrated decentralised communication and onboard edge computing, enabling autonomous detection and tracking of dynamic and static ground targets across different regions without central infrastructure. Builds on earlier single-drone and two-drone tests. Palladyne AI's IntelliSwarm was first flight tested with SwarmOS integrated into the BRAIN X2 flight computer on the Banshee UAV platform in collaboration with Red Cat drone platforms in February 2026.

Scale indicators12 records

Recent moves7 records

Expansion highlights7 records

Direct peers

• Anduril Industries: Anduril builds AI-driven autonomous systems for defense (Lattice OS, Ghost/Lattice drones, Roadrunner, Bolt). It is the most direct comparable to Palladyne in software-defined autonomy and swarm-enabled ISR/strike for the U.S. Department of War.
• Shield AI: Shield AI develops the Hivemind autonomy stack and autonomous tactical aircraft (V-BAT) for DoD. Overlaps directly with Palladyne Pilot, SwarmOS, and BRAIN X2 on AI-enabled autonomous UAVs and swarming for defense customers.
• AeroVironment: AeroVironment is the incumbent U.S. manufacturer of the Switchblade loitering munition family — the most direct functional competitor to IAI's HARPY/HAROP/Mini HARPY systems that Palladyne is licensed to manufacture and market in the U.S.
• Kratos Defense & Security Solutions: Kratos produces tactical UAVs (BQM-177, XQ-58 Valkyrie), target drones, and increasingly autonomous jet-powered systems for the DoW. Comparable to Palladyne's UAS roadmap (SwarmStrike, Gremlin-X) and uncrewed jet/effector programs.
• Skydio: Skydio develops autonomous drones (X10, R10) with onboard AI for defense, public safety, and industrial inspection. Overlaps with Palladyne Pilot's autonomous flight and ISR mission profile, particularly in GPS-denied and comms-denied operation.

Broad incumbents

• Northrop Grumman: Northrop Grumman is a top-tier U.S. defense prime with overlapping programs in loitering munitions, autonomous swarming (Forward Area Air Defense), and unmanned ISR. Serves as both a competitor and a potential customer via Palladyne's Warnke/GuideTech manufacturing and engineering services.
• Lockheed Martin: Lockheed Martin operates across ISR drones, loitering effects, hypersonic strike (similar to Palladyne's ALRRM work via GuideTech), and integrated air-and-missile defense. A broad incumbent that competes for the same DoW program dollars Palladyne targets.
• Palantir Technologies: Palantir provides AI/data platforms (Gotham, Foundry, AIP) to the DoD and is an existing Palladyne investor. Overlaps with Palladyne's defense AI and command-and-control positioning via integration with the Army NGC2 prototype ecosystem.

Emerging players

• Red Cat Holdings: Red Cat manufactures tactical drones (Teal 2, Black Widow) for defense and integrates Palladyne Pilot/SwarmOS/BRAIN X2 onboard. Closely aligned as both a channel partner and a competitor for low-cost attritable ISR drone programs.
• Covariant: Covariant builds embodied AI for warehouse and industrial robots (pick-and-place, sortation), overlapping directly with Palladyne IQ's industrial automation value proposition for existing robot fleets without cloud dependency.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/sarcos_robotics
• Facebookfacebook.com/PalladyneAI
• LinkedInlinkedin.com/company/palladyneaicorp
• Instagraminstagram.com/palladyneai

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles16 records

Subsidiaries4 records

Funding overview

Funding rounds6 records

Investors13 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A4 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Palladyne AI