Axon Q3 FY2026: revenue up 28%, guidance cut
Axon's Q3 FY2026 was a strong demand quarter with a softer forward setup: revenue rose 27.9% to $908.6 million and software accelerated, but management cut FY2026 growth guidance on $130 million of Federal Dedrone timing and free cash flow turned negative. Read the quarter as operating momentum versus execution and margin noise; the key question is whether software bookings can outrun hardware and federal timing.
1 · Expected vs. Actual
Free preview belowGAAP EPS was $0.68 versus a $0.03 loss a year ago, and non-GAAP EPS was $1.72 versus $1.24. The $1.04 gap between non-GAAP and GAAP EPS is wide, reflecting $151.3 million of stock-based compensation and $59.5 million of other income net. Operating income was only $42.1 million, so the net income figure relies on items below the operating line.
Revenue rose 27.9% to $908.6 million; Software & Services rose 43.2% to $437.0 million and Connected Devices rose 16.3% to $471.5 million. Platform Solutions rose 106% to $125.0 million, but Connected Devices growth would have been stronger without a delayed ~$30 million Federal Dedrone deployment. Gross margin fell to 56.7% from 60.1%, so the growth came with a lower-quality mix.
Q4 revenue guidance is $990 million to $1.01 billion, implying FY2026 revenue of $3.61 billion to $3.63 billion and about 30% growth. That is below the prior 32% to 34% outlook because three Federal Dedrone deployments totaling about $130 million are no longer expected in 2026. Management also cut FY2026 free cash flow guidance to $350 million-$400 million from $450 million.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-07
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