Axon Enterprise Shares Fall 18.2% to $313 After Q3 Results and Record Revenue of $909 Million

1What Axon reported

Axon Enterprise, Inc. (AXON) reported third-quarter 2026 revenue of $909 million, up 28% from a year earlier, in a results release filed with the SEC after the close on November 5, 2026. The release was accepted at 4:18 p.m. ET, after trading had ended for the day. The list below gives the main figures as the company printed them, each beside the year earlier figure where the release gives one.

• Sales: Revenue was $909 million, up 28% from a year earlier. Software & Services revenue was $437 million, up 43%. Connected Devices revenue was $472 million, up 16%.
• Profit: Net income was $57 million, or $0.68 per diluted share, against a net loss of $2 million, or ($0.03) per diluted share, a year earlier. Operating income, the profit from running the business, was $42 million, against a loss from operations of $2 million a year earlier. Gross margin, the share of revenue left after the direct cost of goods sold, was 56.7%, against 60.1%.
• Adjusted profit: Adjusted profit, which the company calls non-GAAP net income, was $144 million, or $1.72 per diluted share, against $103 million, or $1.24 per diluted share, a year earlier. Adjusted EBITDA, a profit measure the company defines itself, was $236 million, up 33% from a year earlier.
• Items the release singles out: The company said a federal counter-drone deployment of about $30 million, which it had expected to count in the third quarter, was delayed. It also announced a $1.2 billion investment in Skydio, a drone maker, which raises its ownership stake to 37%. The release names about $100 million of cash used in the quarter to build up inventory.
• Guidance, full year: Guidance is the company's own forecast of its coming results. It now expects full-year revenue growth of approximately 30%, down from prior guidance of 32% to 34%. The company said the reduction is concentrated in three federal counter-drone deployments worth approximately $130 million of revenue that it no longer expects in 2026.
• Guidance, fourth quarter: The company gave revenue of $990 million to $1.01 billion and adjusted EBITDA of $245 million to $250 million. It put full-year adjusted EBITDA at $924 million to $929 million.

2How the stock moved

AXON closed at $313 on Friday, November 6, down 18.2% from the prior close of $382.56, in the first session after the release. The day's low was $307 and the high was $334.95. The recorded open of $337 sits above the recorded high, and this note prints both as recorded.

The table shows the day's prices.

About 5.2M shares changed hands, about 5 times the 30 session average of 1M shares. Volume is the number of shares that change hands in a session. Axon's market value, which is what all of its shares are worth at the market price, was $25.5 billion.

3How this move compares

The table lists the stock's move on the day after each of its last four results reports, with Friday's move at the top.

Earlier results days moved the stock in both directions, from a fall of 14.3% on Aug. 6 to a rise of 17.6% on Feb. 25. Friday's fall of 18.2% is the largest move in the table. A single day's move reflects that day's trading and can reverse or extend in later sessions.

4Market Eyes rating before the report

Before the report, the Market Eyes rating for Axon read Hold with a score of 52, as of its September 10, 2026 snapshot. Its strongest factor read Sentiment at 84, and its weakest read Valuation at 19. This is a record of what the rating read on that date. It describes conditions then and is not a forecast.

5Words in this note

• Guidance: the company's own forecast of its coming results.
• Adjusted profit: profit after the company leaves out some costs it chooses to exclude.
• Adjusted EBITDA: a profit measure the company defines itself that leaves out interest, taxes and some other costs.
• Volume: the number of shares that change hands in a session.
• Market value: what all of a company's shares are worth at the market price.