Axon Enterprise (AXON) Earnings: Q3 2026 Results

The quarter ended September 30, 2026 and Axon Enterprise published the results on November 5, 2026. Revenue and diluted EPS are shown against Q3 2025, the same quarter a year earlier, which takes seasonal swings out of the comparison. Axon Enterprise reports EPS two ways: GAAP, under the accounting rules every US filer follows, and non-GAAP, which leaves out items the company considers outside its operating results. The release reconciles the two, and when they diverge, the reconciliation says why.

• Axon cut its full-year 2026 revenue growth outlook to about 30% from 32% to 34%, because it no longer expects about $130 million of revenue from three Federal Dedrone counter-drone deployments in 2026.
• On November 5, 2026 Axon agreed to invest up to $1.2 billion more in the drone maker Skydio, raising its fully diluted stake from 15% to about 37%, settled with up to about $720.0 million in cash and the rest in Axon stock.

Source: Axon Q3 2026 results, November 5, 2026. Also in the Form 10-Q for the quarter ended September 30, 2026. Figures as reported; checked against the release on November 10, 2026.

How Axon Enterprise splits revenue in its own release, under its own labels, for Q3 2026 against Q3 2025. Indented lines are parts of the line above them.

• Axon Enterprise's Software & Services revenue was $437 million in Q3 2026, up 43% from $305 million in Q3 2025, 48% of total revenue.
• Axon Enterprise's Connected Devices revenue was $472 million in Q3 2026, up 16% from $405 million in Q3 2025, 52% of total revenue.

Segment lines are the figures writers cite most often, because they show where the growth in a quarter came from. Companies redraw their segments from time to time and restate the prior year to match, so a year-ago figure here can differ from the one printed a year ago. When that has happened, the note above says so.

From the earnings release

In its Q3 2026 release, Axon Enterprise said:

“Revenue: We expect revenue of $990 million to $1.01 billion.”

“Adjusted EBITDA: We expect Adjusted EBITDA of $245 million to $250 million.”

“Our fourth-quarter revenue guidance implies full-year 2026 revenue of approximately $3.61 billion to $3.63 billion, representing approximately 30% annual growth.”

“We expect full-year 2026 free cash flow of $350 million to $400 million, modestly below our prior target of $450 million due to our accelerated inventory investment to strengthen product availability and supply chain resilience.”

Source: Axon Q3 2026 shareholder letter, Nov 5, 2026.

This is the company's own guidance as of Nov 5, 2026, quoted as given. Walnut does not make forecasts of its own. Analyst estimates for the coming quarters are on the AXON forecast page.

Revenue and diluted EPS for the last 5 quarters. Each date links to that quarter's release.

GAAP net sales and diluted EPS, each as first reported in that quarter's shareholder letter. Axon reports in thousands; revenue is rounded to the nearest $0.1 million.

We do not hold a confirmed date for Axon Enterprise's next report. Companies post the date on their investor relations site a few weeks ahead, usually with the time of the conference call.

Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.

• Q3 2026 (this page), reported Nov 5, 2026

Axon's net sales rose 28% to $908.6 million in Q3 2026, from $710.6 million. Software & Services, the cloud subscriptions sold alongside its devices, grew 43.2% to $437.0 million. Connected Devices grew 16.3% to $471.5 million: TASER devices and cartridges $233.0 million, Personal Sensors (mainly body cameras) $113.5 million and Platform Solutions $125.0 million. (Axon Q3 2026 shareholder letter, Nov 5, 2026)

Platform Solutions, which includes fleet in-car video, fixed cameras, drones and counter-drone equipment, more than doubled from $60.8 million. Axon says it would have been higher without the delayed timing of an approximately $30 million Federal Dedrone deployment it had expected in the quarter. TASER sales slipped from $238.0 million on lower legacy TASER volume. (Axon Q3 2026 shareholder letter, Nov 5, 2026)

Axon attributes the Software & Services growth to more users and wider adoption of premium plans, increasingly from newer offerings: real-time operations, Axon Records, Axon AI, Axon 911 and Dedrone software together reached an annual revenue run rate of nearly $500 million. AI annual recurring revenue passed $100 million. (Axon Q3 2026 shareholder letter, Nov 5, 2026)

Axon's largest customer vertical is U.S. federal, state and local law enforcement, and no single customer was more than 10% of net sales in 2025. The United States was $772.0 million, or 85%, of Q3 2026 net sales and other countries $136.5 million, or 15%. Third-quarter deals Axon listed include a $258 million AI Era Plan and body camera expansion with a state Department of Corrections. (Axon Form 10-K, 2025, Feb 25, 2026; Axon Q3 2026 shareholder letter, Nov 5, 2026)

Axon's GAAP diluted EPS was $0.68 and its non-GAAP EPS was $1.72 in Q3 2026. The largest item Axon excludes is stock-based compensation, $151.3 million in the quarter; it also excludes $13.4 million of acquired intangible amortization and $7.2 million of transaction and integration costs, and removes $59.7 million of net income from investments and marketable securities. (Axon Q3 2026 shareholder letter, Nov 5, 2026)

Operating income was $42.1 million against a loss of $2.1 million a year earlier. Gross margin fell to 56.7% from 60.1%, which Axon attributes to a larger mix of counter-drone equipment, higher memory costs and the scaling of new product categories. Connected Devices gross margin dropped to 43.0% from 49.9%. (Axon Q3 2026 shareholder letter, Nov 5, 2026)

The effective tax rate was 27.8%, which Axon says differs from the federal statutory rate because of state income taxes and higher tax reserves, partly offset by a net tax benefit from stock-based compensation and R&D credits. The year-ago quarter was a GAAP net loss of $2.2 million, or ($0.03) per share. (Axon Form 10-Q, Q3 2026, Nov 6, 2026; Axon Q3 2026 shareholder letter, Nov 5, 2026)

Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.

Axon guided Q4 2026 revenue of $990 million to $1.01 billion and adjusted EBITDA of $245 million to $250 million. That implies full-year 2026 revenue of about $3.61 billion to $3.63 billion, about 30% growth, down from its prior guidance of 32% to 34%. Axon says the cut reflects about $130 million of Federal Dedrone revenue it no longer expects this year: the $30 million deployment that slipped from Q3 and two more totaling $100 million that had been planned for Q4. (Axon Q3 2026 shareholder letter, Nov 5, 2026)

Axon lowered its full-year free cash flow target to $350 million to $400 million from $450 million because of an inventory build it expects to use $225 million of cash in 2026. It also cut its capital spending range to $130 million to $150 million. (Axon Q3 2026 shareholder letter, Nov 5, 2026)

A consensus figure is the average of the models published by the analysts who cover Axon Enterprise, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.

The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.

The figures below are the ones Axon Enterprise's own release and filings put weight on for Q3 2026, with the latest reported value for each.

What the quarter means for a holding is a separate question from what it reported. The case for and against owning AXON is on is AXON a buy or a sell?, what analysts expect next is on the AXON forecast, and what the company does is on the Axon Enterprise (AXON) stock page.

Every number on this page can be traced to a document Axon Enterprise published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.

• The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
• The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
• The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
• Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.

A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.