Axon's Q3 revenue misses; increases stake in Skydio with $1.2 billion investment
AXON•Axon reported Q3 revenue of $909 million, below the $937.59 million consensus, while net income reached $57 million. It increased its stake in Skydio to 37% with a $1.2 billion investment and lowered its 2026 revenue growth outlook to about 30%.
1. Third-quarter results
Axon's Q3 revenue rose 28% year over year to $909 million, missing analyst expectations of $937.59 million. Net income was $57 million, reversing a loss in the year-earlier period, and adjusted EBITDA was $236 million.
2. Revenue outlook
Axon expects Q4 revenue of $990 million to $1.01 billion. It lowered its 2026 revenue growth outlook to about 30%, citing delays to Federal Dedrone, and expects full-year adjusted EBITDA of $924 million to $929 million.
3. Skydio investment
Axon increased its stake in Skydio to 37% with a $1.2 billion investment. Software and Services revenue grew 43% year over year, while Connected Devices revenue rose 16%; the company said gross margin was pressured by a higher mix of counter-drone equipment, higher memory costs and scaling new product categories.
