Palladyne AIPDYN -2.51%58 Gross Margin % is 30.10% as of Mar. 2026, which is 0% below its 10-year median of 30.12. GuruFocus rates PDYN with a GF Score™ of 58/100 and a GF Value™ of $1.59 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,683 Software companies, Palladyne AI ranks worse than 60.83% on this metric.
The historical rank and industry rank for Palladyne AI's Gross Margin % or its related term are showing as below:
PDYN'
s Gross Margin % Range Over the Past 10 Years
Min: 17.98 Med: 30.12 Max: 55.2
Current: 32.01
During the past 6 years, the highestGross Margin % of Palladyne AI was 55.20%. The lowest was 17.98%. And the median was 30.12%.
PDYN's Gross Margin % is ranked worse than 60.83% of 2683
companies
in the Software industry
Industry Median: 40.45
vs PDYN: 32.01
Palladyne AI had a gross margin of 30.10% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Palladyne AI was 11.70% per year.
Palladyne AI (NAS:PDYN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Palladyne AI had a gross margin of 30.10% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Palladyne AI Gross Margin % Related Terms
Palladyne AI Gross Margin % Historical Data
* Premium members only.
The historical data trend for Palladyne AI's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PDYN vs ALLT, IIIV, PSFE: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Palladyne AI's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Palladyne AI Gross Margin % vs Software Industry
For the Software industry and Technology sector, Palladyne AI's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Palladyne AI's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Palladyne AI (PDYN) has a Gross Margin % of 30.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Palladyne AI and its competitors. This is near median its historical median of 30.12. Over the past decade, Palladyne AI's Gross Margin % has ranged from 17.98 to 55.20. According to the industry distribution chart, Palladyne AI ranks #1632 out of 2683 companies in the Software industry, placing it in the top 60.8%.
Is Palladyne AI's Gross Margin % too high?
Palladyne AI's current Gross Margin % of 30.10% is near median its 10-year median of 30.12. Over the past 10 years, this metric has ranged from a low of 17.98 to a high of 55.20. The Software industry median Gross Margin % is 40.45. Palladyne AI's value of 30.10% is 25.6% below this industry median. Based on the distribution chart, Palladyne AI ranks #1632 out of 2683 companies in the Software industry, which is below the industry midpoint. Overall, Palladyne AI has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palladyne AI's Gross Margin % compare to ALLT and IIIV?
According to the Software industry distribution chart, Palladyne AI ranks #1632 out of 2683 companies for Gross Margin %. This places Palladyne AI in the lower half of its industry. The industry median Gross Margin % is 40.45. Palladyne AI's value of 30.10% is 25.6% below this benchmark. Historically, Palladyne AI's own Gross Margin % has ranged from 17.98 to 55.20 over the past decade. While the company's 10-year median is 30.12 vs. the industry median of 40.45, Palladyne AI has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palladyne AI's current Gross Margin % of 30.10% is 25.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Palladyne AI and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palladyne AI's current Gross Margin % is 30.10%, which is near median its own 10-year median of 30.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palladyne AI stock overvalued right now?
Based on GuruFocus' analysis, Palladyne AI (PDYN) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.59, compared to a current price of $5.83 — trading 266.7% above its estimated fair value. The current Gross Margin % is 30.10%, which is near median its 10-year median of 30.12 and 25.6% below the Software industry median of 40.45. Palladyne AI's overall GF Score™ is 58/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Palladyne AI (PDYN), the current Gross Margin % is 30.10% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Palladyne AI (PDYN) Overvalued in 2026?
Based on GuruFocus' analysis, Palladyne AI stock appears to be overvalued.
The current stock price of $5.83 is trading 266.7% above its estimated GF Value™ of $1.59.
GuruFocus considers Palladyne AI to be Significantly Overvalued.
Key valuation signals for PDYN:
Gross Margin %: 30.10% (near median its 10-year median of 30.12)
GF Value™: $1.59 vs. price of $5.83 (266.7% above fair value)
Industry Position: 25.6% below the Software median (#1632 of 2683)
No single metric tells the full story. See the PDYN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palladyne AI Corp is a software company focused on autonomy for robotic systems and solutions. Its artificial intelligence and machine learning software seeks to revolutionize the capabilities of robots, enabling them to observe, learn, reason, and act in structured and unstructured environments. AI and ML software platform of the company empowers robots to perceive variations or changes in the real-world environment, enabling them to autonomously maneuver and manipulate objects accurately in response. Palladyne AI software has wide application, including in industries such as automotive, aviation, construction, defense, general manufacturing, infrastructure inspection, logistics and warehousing.
58GF Score
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