Axon Enterprise, Inc. · AXON · FY2026 Q3 · Calendar Q4 2026

Axon’s Q3 growth story meets investment, timing and margin questions

The supplied analysis describes continued demand across software, services and new products, but the case for sustaining that growth depends on execution: federal contract timing, the Skydio strategy, and component-cost pressure remain material uncertainties.

Why did AXON fall 9.8% after missing EPS estimates in FY2026 Q3?

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Reported After market closeNASDAQIndustrials $31.08B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.72 Consensus $1.89
EPS surprise -9.0% Reported versus consensus
Reported revenue $908.6M Consensus $934.3M
Revenue surprise -2.8% Reported versus consensus

Market reaction

close-to-close (session unavailable)
Stock move -9.8% Event window
SPY move -4.4% Same window
Abnormal move -5.4% Stock minus SPY
Volume 3.9× Versus trailing sessions
Subsequent drift 0.0% Up to 20 sessions
AXONSPY benchmark

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Transcript intelligence

What changed

Compared with the prior-quarter analysis, the latest call adds a substantial strategic commitment to Skydio and an intentional inventory build, while federal Dedrone deployment timing and memory costs sharpen near-term execution and margin questions. Guidance sentiment moved from raised in the prior quarter to maintained in the latest analysis.

Guidance delta

Latest guidance sentiment is described as maintained, versus raised in the prior-quarter analysis. Federal Dedrone deal timing is identified as a source of near-term uncertainty.

Key takeaways

  • The analysis identifies software and services as nearly half of revenue, with ARR at $1.8 billion.
  • The Skydio investment and exclusive public-safety distribution expand Axon’s drone strategy, while raising questions about ownership and long-term returns.
  • Federal Dedrone deployments are described as large but timing-sensitive, limiting near-term visibility.
  • Inventory investment is intended to support demand and reduce supply risk, but memory costs are a margin concern.

Management priorities

  • Advance the Axon Body 5 launch and new product cycles.
  • Scale Skydio drone integration and public-safety distribution.
  • Expand Axon 911 deployments and build inventory to support demand and reduce supply-chain risk.

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Earnings History

Estimate Beat Miss Match
AXON REVENUE earnings history estimate and actual scatter chart 10 reported fiscal quarters and 2 future estimate-only quarters. Q2 '24 estimate $478M Q2 '24 actual $504M, beat Q3 '24 estimate $525M Q3 '24 actual $544M, beat Q2 '25 estimate $641M Q2 '25 actual $669M, beat Q3 '25 estimate $705M Q3 '25 actual $711M, beat Q4 '25 estimate $756M Q4 '25 actual $797M, beat Q1 '26 estimate $781M Q1 '26 actual $807M, beat Q2 '26 estimate $876M Q2 '26 actual $904M, beat Q3 '26 estimate $934M Q3 '26 actual $909M, miss Q4 '26 estimate $1B Q1 '27 estimate $1B
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Analyst Consensus ?

ConsensusBuy22 ratings
Bullish1881.8%
Neutral418.2%
Bearish00.0%

Analyst 52W Price Targets

$311.9Current
$300Low
$648.43Average
$900High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Nov 6, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
TD Cowen Buy BuyMaintainOct 26, 2026
Piper Sandler Overweight OverweightMaintainOct 20, 2026
Argus Research Buy BuyMaintainSep 3, 2026
UBS Neutral NeutralMaintainAug 6, 2026
Morgan Stanley Overweight OverweightMaintainAug 6, 2026
Show 17 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $311.9. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Piper SandlerAnalyst unavailable$561$383.09 +79.9%Oct 20, 2026
Raymond JamesAnalyst unavailable$675$402.87 +116.4%Oct 15, 2026
Argus ResearchAnalyst unavailable$600$506.98 +92.4%Sep 3, 2026
Morgan StanleyMeta Marshall$640$528.41 +105.2%Aug 6, 2026
Goldman SachsAnalyst unavailable$715$561.47 +129.2%Aug 6, 2026
See 35 more

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Company context

Snapshot as of publication

Axon Enterprise, Inc., founded in 1993 and headquartered in Scottsdale, Arizona, was previously known as TASER International, Inc. until its rebranding in April 2017. The company specializes in the development, production, and sale of conducted energy devices (CEDs) marketed under its well-known TASER brand, catering to both domestic and international clients. Axon's operations are divided into two primary segments: TASER, and Software and Sensors. In addition to its signature TASER devices, such as the TASER 7, X26P, X2, and consumer models, along with their corresponding cartridges, Axon offers an extensive portfolio of hardware and cloud-based software.…

Historical context

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Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-11-06T06:13:22.349988+00:00
  2. FN2 earnings calendar · 2026-11-06T01:23:16.275024+00:00
  3. Polygon adjusted daily market bars · 2026-11-06T09:50:43.814394+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-11-06T09:50:43.811600+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-11-06. For educational purposes only; not investment advice.