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Axon Enterprise, Inc. — Q3 2026 Earnings Summary

  • Revenue reached $909 million (+28% YoY) driven by 43% growth in Software & Services and 106% growth in Platform Solutions, though net income turned positive at $57 million versus a $2 million loss prior year.
  • Full-year 2026 revenue guidance was lowered to $3.61–$3.63 billion (approx. 30% growth) and Adjusted EBITDA to $924–$929 million, reflecting the exclusion of three $130 million Federal Dedrone deployments.
  • Announced a $1.2 billion strategic investment in Skydio, increasing ownership to 37% and establishing an exclusive U.S. and Canada distribution partnership.
  • Free cash flow was an outflow of $19 million due to a $100 million strategic inventory investment, while annual recurring revenue grew 40% YoY to $1.75 billion.
  • Gross margins declined to 56.7% (from 60.1%) due to product mix shifts and higher memory costs, with Q4 2026 revenue guidance set at $990 million to $1.01 billion.
Company
AXON ENTERPRISE INC
Sector
Industrials
Industry
Aerospace & Defense