Axon Enterprise (AXON) Q3 2026 Earnings Report
MX:AXON Q3 2026 EPS Results
- Actual EPS
- MXN 32.21
- Consensus EPS
- MXN 35.32
- Beat/Miss
- Missed by -MXN 3.11
- One Year Ago EPS
- MXN 21.91
MX:AXON Q3 2026 Revenue Results
- Actual Revenue
- MXN 17.01B
- Expected Revenue
- MXN 17.50B
- Beat/Miss
- Missed by -MXN 482.68M
- YoY Revenue Growth
- +27.85%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/05/2026
- Time
- After Close
- Conference Call
- Thursday, November 5, 2026
Axon Enterprise's next earnings date is estimated for March 2, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive overall. Axon reported 28% third-quarter revenue growth, accelerating software and recurring-revenue performance, strong bookings, expanding AI and 911 adoption, large customer wins and a substantial Skydio investment. The principal challenges were delayed Federal Dedrone deployments, increased inventory spending that reduced free cash flow, memory-related margin pressure, a modest TASER revenue decline and the delayed Apollo Dart launch. Management nevertheless characterized underlying demand as strong and maintained confidence in long-term growth.
Axon expects fourth quarter revenue of $990 million to $1.01 billion and fourth quarter adjusted EBITDA of approximately $245 million to $250 million, implying full year adjusted EBITDA of $924 million to $929 million or approximately 25.6% margin. The full year free cash flow expectation is $350 million to $400 million, compared to the prior target of $450 million; at the midpoint, conversion is about 40% and Q4 free cash flow alone would be approximately $450 million. The outlook no longer assumes 2 large Federal Dedrone deployments totaling approximately $100 million, which, combined with the $30 million deployment that moved out of Q3, represents approximately $130 million or nearly 500 basis points of growth this year; even without these materializing, the midpoint of growth for the year is still above 30% for the fifth straight year. Axon expects to reach target inventory levels in the first half of '27, with 2027 expected to include conservatively half a year of having an inventory investment, and expects to be back to 60% conversion by 2028. The current planning assumption is that elevated memory costs remain a headwind through '27 and '28, with pricing not continuing to increase materially from what is being seen today.
- Expanded Skydio Partnership and $1.2 Billion InvestmentAxon announced an expanded commercial partnership with Skydio and an additional $1.2 billion investment, taking Axon's fully diluted ownership to 37%. Axon will be Skydio's exclusive public safety distributor in the U.S. and Canada, while the investment provides exposure to Skydio's autonomous-drone business.
- Axon Expands Airspace CapabilitiesManagement said the combination of Skydio's public safety drones and Dedrone's airspace-threat protection gives Axon coverage on both sides of the airspace, supporting an integrated ecosystem spanning Axon 911, drones, Fusus, body cameras, AI, evidence and reporting workflows.
- Axon Body 5 Product LaunchAxon Body 5 was launched with 25x the processing power of the prior generation, improved connectivity and longer battery life. Body 5 Pro includes separate video and high-resolution still-image cameras, enabling officers to scan driver's licenses and other documents directly from the body camera. The product is expected to launch next spring.
- AI Revenue Surpasses $100 Million ARRAxon's AI products surpassed $100 million in annual recurring revenue. Management said AI became a meaningful part of the business in less than two years.
- Guardian Generally AvailableGuardian is now generally available and can detect when a situation may be escalating, alert a real-time operations center and provide another set of eyes on an officer's live stream.
- TASER Ion Expands Addressable Customer BaseAxon launched TASER Ion for undercover officers, protection teams and international customers that previously did not have a suitable form factor. Management said early customer response indicated a compelling future growth opportunity.
- Axon 911 MomentumAxon 911 was described as outperforming management's expectations. ARR across the 911 business doubled during the year, Axon won dozens of 911 centers, and three major full-scope deployments were ramping in the field. Management also cited additional international uptake and large fourth-quarter opportunities.
- Gravity Data Platform InitiativeAxon is building Gravity as a secure repository for AI-enhanced public safety data, intended to bring customer data together across previously siloed systems so mission engineers can help customers apply AI to identify patterns.
- Strong Bookings GrowthTotal bookings and five-year normalized bookings were up more than 20% year-to-date. Bookings across Dedrone, 911, Fusus and AI more than doubled from last year and exceeded $1 billion year-to-date, with management saying the pipeline could support that figure doubling in Q4.
- Corrections Wins Large Ecosystem DeploymentsAxon's three largest deals in the quarter were major ecosystem deployments with three different state departments of corrections: one 8-figure and two 9-figure multiyear agreements spanning nearly the full Axon portfolio.
- International and Federal Bookings GrowthInternational bookings increased more than 30% year-to-date on top of a record year last year. Federal bookings were up more than 5x last year's results year-to-date, with large opportunities across Dedrone, TASER and body cameras.
- Enterprise Expansion OpportunityAfter an initial Fusus agreement covering approximately 300,000 video streams, Axon is working on a larger agreement with the same enterprise customer that would add body cameras and AI solutions such as MetaCoach.
- Third-Quarter Revenue GrowthThird-quarter revenue was $909 million, up 28% year-over-year. Management said revenue would have been up more than 30% if the large Federal Dedrone deal had landed in the quarter.
- Platform Solutions GrowthPlatform Solutions revenue grew 106% year-over-year to $125 million, driven primarily by Dedrone. Dedrone delivered its second-largest quarter ever, even after several large World Cup-related shipments in Q2, and management said demand and the pipeline of large projects remained very strong.
- Software and Services AccelerationSoftware and Services revenue grew 43% year-over-year to $437 million, with growth accelerating by almost 700 basis points sequentially. It was the segment's highest quarterly contribution ever and approached half of total company revenue.
- Recurring Revenue and Retention StrengthAnnual recurring revenue increased 40% year-over-year to $1.8 billion, while net revenue retention remained strong at 126%. Real-time operations, records, AI, Dedrone software and 911 collectively reached an annual revenue run rate of nearly $500 million, more than doubling from last year.
- Connected Devices and Body Camera DemandConnected Devices revenue increased 16% to $472 million. Body 4 revenue grew 25% sequentially, in line with expectations, and management said Body 4 demand remained strong ahead of the next major body-camera upgrade cycle associated with Body 5.
- Adjusted EBITDA GrowthAdjusted EBITDA increased more than 33% year-over-year to $236 million, representing a 25.9% adjusted EBITDA margin.
- Balance Sheet and Capital FlexibilityAxon raised $1.15 billion through convertible financing, using the proceeds to add cash to the balance sheet and fund part of the Skydio investment. The $1.2 billion Skydio investment is expected to comprise approximately 60% cash and 40% stock.
- Strong Contracted Bookings Base and Fourth-Quarter OutlookAxon reported $15.8 billion of future contracted bookings. Fourth-quarter revenue guidance is $990 million to $1.01 billion, and fourth-quarter adjusted EBITDA guidance is approximately $245 million to $250 million. Full-year adjusted EBITDA guidance is $924 million to $929 million, or approximately a 25.6% margin, while full-year growth is expected to remain above 30% for the fifth straight year.
- Customer Trust and ALPR PipelineManagement said nearly 500 agencies are in Axon's pipeline or have already switched to Axon for automated license plate recognition. Several hundred agencies were also described as having moved from competitors, with management attributing the activity to customer trust in Axon's handling of privacy and data.
MX:AXON Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 02, 2027 | 2026 (Q4) | 40.00- | 40.26 | ― | ― |
| Nov 05, 2026 | 2026 (Q3) | 35.3232.21 | 21.91 | 47.01% (+10.30) | |
| Aug 05, 2026 | 2026 (Q2) | 34.5335.21 | 39.7 | -11.32% (-4.49) | |
| May 06, 2026 | 2026 (Q1) | 29.9130.15 | 26.4 | 14.18% (+3.75) | |
| Feb 24, 2026 | 2025 (Q4) | 29.9440.26 | 38.95 | 3.37% (+1.31) | |
| Nov 04, 2025 | 2025 (Q3) | 28.4821.91 | 27.15 | -19.31% (-5.24) | |
| Aug 04, 2025 | 2025 (Q2) | 27.2539.70 | 22.47 | 76.67% (+17.23) | |
| May 07, 2025 | 2025 (Q1) | 23.8626.40 | 21.54 | 22.61% (+4.87) | |
| Feb 25, 2025 | 2024 (Q4) | 26.2938.95 | 20.97 | 85.71% (+17.98) | |
| Nov 07, 2024 | 2024 (Q3) | 22.4327.15 | 19.1 | 42.16% (+8.05) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
