Axon Enterprise (AXON) Q3 revenue $909 million vs $956 million est.

Software & Services revenue accelerated 43% to $437 million, Platform Solutions jumped 106% to $125 million, and AI annual recurring revenue surpassed $100 million as AI bookings rose more than 50% year to date. Separately, Axon announced its largest-ever investment—$1.2 billion in Skydio—raising its ownership stake to 37% and securing an exclusive public safety distribution partnership for Skydio drones in the U.S. and Canada. The company trimmed its full-year outlook, citing roughly $130 million in delayed revenue from three large Federal Dedrone deployments, and said growth would have been nearly 500 basis points higher without those slips; it still expects about 30% full-year revenue growth. Investors will watch whether the deferred Dedrone federal revenue lands in 2026 or shifts into next year, and how quickly the Skydio stake and drone-as-first-responder push translate into bookings.