PomegraAxon Stock Sinks 17% After Earnings Miss, Guidance Cut
Why is Axon stock down today?
Axon Enterprise (AXON) stock fell about 17% on Friday to a two-year low after an earnings miss and lowered 2026 sales guidance, while the company also pledged $1.2B to drone maker Skydio.
Key numbers
| Q3 revenue | $909M+28% YoY |
|---|---|
| Adjusted EPS vs. estimate | $1.72missed by about $0.17 (per [4]) |
| 2026 revenue guidance | $3.61B-$3.63B30% growth vs. 32%-34% before |
| Delayed Dedrone orders | ~$130Mpushed out of 2026 |
| 2026 free cash flow outlook | $350M-$400Mvs. $450M before |
| Skydio investment | $1.2Bstake rises to 37% |
What happened
Axon Enterprise (AXON) stock fell about 17% on Friday to a two-year low after an earnings miss and lowered 2026 sales guidance, while the company also pledged $1.2B to drone maker Skydio. Sales rose 28% to $909 million, but analysts had expected more. Axon now sees 2026 sales growing about 30%, down from its earlier forecast of 32% to 34%, because three federal orders for its anti-drone system (Dedrone), worth about $130 million, were delayed. The Skydio deal lifts its ownership of the drone maker to 37%.
Why it matters
Axon Enterprise makes Tasers, body cameras and software for police, so a sharp drop shows investors worry its growth is slowing. The delayed federal orders and a 2% dip in Taser sales, the first in years, raise questions about how fast newer products are bringing in money. Spending $1.2 billion on Skydio also ties more of Axon's future to a young police-drone market.
Who this affects
- MarketneutralLow impact
- Axon shareholders took a big hit; wider market impact small.
- CompanybearishHigh impact
- Shareholders face a steep loss and slower expected growth.
- CompetitorsneutralLow impact
- Rivals see little direct change from Axon's delays.
- IndustrymixedMedium impact
- Police drone use gets a big backer; federal orders slow.
Axon vs Motorola Solutions, AeroVironment
How we got here
Axon reports Q3 after the market close, cuts its 2026 sales outlook and announces the Skydio investment.
Shares fall about 17% to their lowest level since August 2024.
Analysts reset price targets lower, though most keep positive ratings.
What to watch
- Axon's fourth-quarter report, including whether delayed Dedrone orders close.2027-03-02
- Closing of the Skydio investment, planned in stages.Q1 2027
Educational content only. Not investment advice.
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