Axon Enterprise, Inc.: Miss — EPS $1.72, Revenue $909M
Earnings MissQ3 2026 · After-market
Did Axon Enterprise, Inc. (AXON) beat earnings?
No, Axon Enterprise, Inc. (AXON) missed Wall Street analyst expectations for Q3 2026, reporting lower-than-expected EPS and lower-than-expected revenue.
Earnings Per Share-8.99% surprise
$1.72Actual
Expected: $1.89
vs. year ago +38.7%
Total Revenue-2.71% surprise
$909MActual
Expected: $934.33M
vs. year ago +28.0%
Released Nov 05 · 4:01 PM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $908.55M | $710.64M | +28.0% |
| Revenue detail — reported lines | |||
| └─Connected Devices | $471.52M | $405.40M | +16.3% |
| └─Software & Services | $437.03M | $305.24M | +43.2% |
| └─TASER | $233.04M | $237.95M | -2.1% |
| └─Personal Sensors | $113.53M | $106.68M | +6.4% |
| └─Platform Solutions | $124.95M | $60.77M | +105.6% |
| GAAP Basic EPS | $0.70 | $(0.03) | - |
| GAAP Diluted EPS | $0.68 | $(0.03) | - |
| Non-GAAP Diluted EPS | $1.72 | $1.24 | +38.7% |
| Net Income | $57.01M | $(2.186M) | - |
Financial Outlook / Guidance
| Metric | Q4 2026 Outlook | FY 2026 Outlook | ||
|---|---|---|---|---|
| Guidance | Expected | Guidance | Expected | |
| Revenue | $990M-$1.01B | $1.07BMiss -6.54% | ~$3.61B-$3.63B (~30% YoY, prev. 32%-34% YoY | $3.71BMiss -2.43% |
| Adjusted EBITDA | $245M-$250M | — | $924M-$929M (25.6%, prev. 25.5% | — |
| Free cash flow | — | — | $350M-$400M (prev. $450M | — |
| Stock-based compensation | — | — | ~$570M-$600M (prev. $590M-$620M | — |
| CapEx | — | — | $130M-$150M (prev. $160M-$190M | — |
Q4 2026 Outlook
- Revenue
- Guidance$990M-$1.01BExpected$1.07BMiss -6.54%
- Adjusted EBITDA
- Guidance$245M-$250MExpected—
- Free cash flow
- Guidance—Expected—
- Stock-based compensation
- Guidance—Expected—
- CapEx
- Guidance—Expected—
FY 2026 Outlook
- Revenue
- Guidance~$3.61B-$3.63B(~30% YoY, prev. 32%-34% YoYExpected$3.71BMiss -2.43%
- Adjusted EBITDA
- Guidance$924M-$929M(25.6%, prev. 25.5%Expected—
- Free cash flow
- Guidance$350M-$400M(prev. $450MExpected—
- Stock-based compensation
- Guidance~$570M-$600M(prev. $590M-$620MExpected—
- CapEx
- Guidance$130M-$150M(prev. $160M-$190MExpected—
Business Highlights
- ➤Increased Skydio ownership to 37% through a $1.2B investment.
- ➤Became Skydio’s exclusive public-safety distributor in the U.S. and Canada.
- ➤Deployed Skydio docks through Axon Air more than doubled year over year.
- ➤Introduced Axon Body 5 with 25x more processing power and 4K video.
- ➤Launched TASER Ion, a pocket-sized less-lethal device for broader use cases.
- ➤Moved Axon Guardian into general availability within the AI Era Plan.
- ➤Guardian adds real-time Escalation Detection and Fleet 3 Approach Alert capabilities.
- ➤Newer software offerings reached nearly $500M annual revenue run rate.
- ➤AI annual recurring revenue surpassed $100M.
- ➤Secured a $258M AI Era Plan and body-camera expansion with a state corrections department.
- ➤Secured a $115M OSP 10 Premium, AI Era Plan and Axon Fusus agreement.
- ➤Secured an $18M Dedrone deployment with a U.S. federal agency.