Axon Enterprise (NASDAQ:AXON) Releases Earnings Results, Misses Estimates By $0.17 EPS

Posted by Francis Steltz on Nov 6th, 2026

Axon Enterprise (NASDAQ:AXON – Get Free Report) posted its earnings results on Thursday. The biotechnology company reported $1.72 earnings per share for the quarter, missing analysts’ consensus estimates of $1.89 by ($0.17), FiscalAI reports. Axon Enterprise had a net margin of 6.19% and a return on equity of 2.84%. The business had revenue of $908.55 million during the quarter, compared to analysts’ expectations of $934.33 million. During the same period last year, the business posted $1.17 earnings per share. The company’s revenue for the quarter was up 27.8% compared to the same quarter last year.

Here are the key takeaways from Axon Enterprise’s conference call:

Axon reported Q3 revenue of $909 million, up 28%, with software and services revenue growing 43%, ARR rising 40% to $1.8 billion, and year-to-date bookings up more than 20%. Management said demand remains strong across its newer offerings and its $15.8 billion of future contracted bookings.
Delays to three large federal Dedrone deployments put about $130 million of expected revenue at risk of slipping beyond year-end, prompting Axon to exclude them from Q4 guidance. The company cited procurement and deployment timing, while emphasizing that it views demand for the projects as intact.
Axon lowered its full-year free cash flow outlook to $350 million–$400 million, from a prior target of $450 million, as it accelerated inventory purchases—including a more than $100 million increase in Q3. Management expects inventory investment to moderate in early 2027, but said cash conversion may not return to its 60% target until 2028.
Axon announced a $1.2 billion investment in Skydio, bringing its fully diluted ownership to 37%, alongside exclusive U.S. and Canadian public-safety distribution rights. Management sees the partnership as a way to expand its connected public-safety ecosystem and participate in Skydio’s broader drone opportunity.
Adjusted gross margin was 59.2%, with product mix and higher component costs weighing on results; memory costs are expected to remain a headwind through 2027 and 2028. Axon estimated memory costs would pressure margins by about 50 basis points this year and said operating leverage and software growth will be important offsets.

Axon Enterprise Stock Down 9.8%

Shares of AXON traded down $41.62 during trading hours on Thursday, hitting $382.56. The company had a trading volume of 3,606,153 shares, compared to its average volume of 934,160. Axon Enterprise has a one year low of $339.01 and a one year high of $665.07. The company’s fifty day moving average price is $447.49 and its two-hundred day moving average price is $476.73. The company has a market capitalization of $31.08 billion, a PE ratio of 158.74, a price-to-earnings-growth ratio of 8.06 and a beta of 1.48. The company has a current ratio of 2.15, a quick ratio of 1.80 and a debt-to-equity ratio of 0.47.

Key Stories Impacting Axon Enterprise

Here are the key news stories impacting Axon Enterprise this week:

Positive Sentiment: Axon reported record Q3 revenue of $909 million, up 28% year over year, and returned to net income. Adjusted EBITDA rose 33% to $236 million. Axon Q3 results
Positive Sentiment: Growth in newer offerings was strong: Drone as First Responder software and services revenue grew 43%, Platform Solutions revenue climbed 106%, and AI annual recurring revenue exceeded $100 million. Axon Q3 results
Positive Sentiment: Axon invested an additional $1.2 billion in Skydio, raising its stake to 37% and making it Skydio’s exclusive public-safety distributor in the U.S. and Canada. The deal could strengthen Axon’s drone-response offering, though it requires substantial capital. Axon Skydio investment
Negative Sentiment: Q3 adjusted earnings of $1.72 per share and revenue of about $909 million both missed analyst estimates, despite solid year-over-year growth. Q3 earnings and revenue miss
Negative Sentiment: Axon’s Q4 revenue outlook of $990 million–$1.0 billion was below the roughly $1.1 billion consensus, while its full-year 2026 revenue outlook of $3.6 billion also trailed expectations of about $3.7 billion. Revenue outlook and Skydio investment
Negative Sentiment: Zacks Research downgraded Axon from “strong buy” to “hold.” A lawsuit over the company’s AI-powered license-plate-reader network also presents potential legal uncertainty. License plate reader lawsuit

Analysts Set New Price Targets

AXON has been the topic of a number of recent analyst reports. Zacks Research lowered shares of Axon Enterprise from a “strong-buy” rating to a “hold” rating in a research report on Tuesday. Argus upped their target price on Axon Enterprise from $460.00 to $600.00 and gave the company a “buy” rating in a research note on Thursday, September 3rd. Raymond James Financial set a $675.00 target price on Axon Enterprise in a research note on Thursday, October 15th. Needham & Company LLC reiterated a “buy” rating on shares of Axon Enterprise in a report on Tuesday, October 27th. Finally, Citigroup restated a “market outperform” rating on shares of Axon Enterprise in a report on Monday. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $688.38.

Check Out Our Latest Research Report on AXON

Insider Activity

In other Axon Enterprise news, insider Jeffrey C. Kunins sold 9,605 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $626.70, for a total value of $6,019,453.50. Following the completion of the sale, the insider owned 97,761 shares of the company’s stock, valued at approximately $61,266,818.70. This trade represents a 8.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Isaiah Fields sold 1,017 shares of Axon Enterprise stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $480.45, for a total transaction of $488,617.65. Following the completion of the sale, the insider owned 56,264 shares of the company’s stock, valued at $27,032,038.80. This trade represents a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 47,397 shares of company stock valued at $26,722,984 over the last 90 days. 4.20% of the stock is currently owned by corporate insiders.

About Axon Enterprise

(Get Free Report)

Axon Enterprise, Inc develops technology and connected products for public safety organizations. The company’s portfolio includes TASER conducted-energy weapons, body-worn cameras, in-car cameras, and related hardware designed to support law enforcement, corrections, security, and other emergency-response professionals.

Axon also provides cloud-based software for managing digital evidence, records, workflows, real-time operations, investigations, and communications. Its platform is intended to connect hardware, software, and services across the public-safety ecosystem, helping agencies collect, store, analyze, and share operational information.

The company was founded in 1993 as TASER International by Rick Smith and Tom Smith and adopted the name Axon Enterprise in 2017 as it expanded beyond conducted-energy weapons into a broader technology platform.