Axon falls during trading after earnings miss and federal drone delays cut its sales outlook
Earnings results
- EPS miss -9.9%
Actual: $1.72 · Cons.: $1.91 (Adjusted diluted EPS)
- Revenue miss -3.3%
Actual: $0.908554B · Cons.: $0.94002B (Reported net sales)
- Guidance
Cut 2026 sales growth to about 30% from 32–34%.
Earnings and the stock move
Axon reported earnings after the November 5 close and lowered its sales outlook after three federal drone-detection deployments slipped out of its 2026 plans. It also cut its cash flow forecast as it spent more on inventory. These changes matter because they delay revenue and leave less cash available this year.
Q3 2026 earnings recap
Axon fell about 15% during trading on November 6, 2026, after its earnings missed estimates and it cut its sales outlook.
- Quarterly sales rose 28% to $909 million. Analysts had expected about $940 million.
- Adjusted profit per share was $1.72 versus a $1.91 estimate. Reported diluted profit per share was $0.68.
- Axon lowered its 2026 sales growth outlook to about 30% from 32% to 34%. It excluded roughly $130 million from three delayed federal drone-detection projects.
- The company cut its forecast for cash left after investment to $350 million to $400 million from $450 million. Building up inventory ties up cash.
- Software and services sales grew 43% to $437 million. That growth helped offset the hit from project delays.
- Axon agreed to invest up to about $1.2 billion more in Skydio. It also secured exclusive public safety distribution rights in the United States and Canada.
Watch when the federal projects can generate sales and whether Axon turns its software growth into more cash.
Financials and technicals
Charts through Nov 5, 2026. The session move above may reflect later news.
Technical setup and risks
The regular close can show whether Axon recovers part of the decline. The next operating update should clarify federal deployment timing and inventory spending.
AI-assisted research with source and calculation checks. Prices may be delayed. Technical charts use the stated completed session, which can precede the quoted intraday move. Educational information; investing involves risk.