Axon shares fell 16.2% after its third-quarter revenue of $909 million and adjusted earnings of $1.72 per share missed analyst estimates. The company lowered its 2026 revenue growth outlook to 30% from 32%-34%, citing three federal deployments delayed until 2027.
Axon shares fell 16.2% on Friday after the company reported third-quarter revenue of $909 million, up 28% year over year but below the $937.6 million estimate. Adjusted earnings per share were $1.72, below the average analyst expectation of $1.88.
Axon now expects full-year 2026 revenue of about $3.61 billion to $3.63 billion, representing 30% annual growth, down from its prior outlook for 32%-34% growth. The company said three federal Dedrone deployments totaling about $130 million were pushed into 2027. It also announced an increased stake in Skydio to 37%, with a $1.2 billion investment.
At least five brokerages cut their price targets after the report. UBS lowered its target to $380 from $470, while JPMorgan cut to $610 from $755 and TD Cowen to $650 from $800. The median target among 22 analysts was $575, down from $700 a month earlier.
