Axon Enterprise shares closed at $313.00 on Friday, Nov. 6, down $69.56, or 18.18%, from Thursday’s close of $382.56. It was the largest percentage decline in the S&P 500, which rose 0.31% to 7,376.86, and Axon’s lowest close since August 2024.
The Taser and body camera maker reported third-quarter results on Thursday. Revenue rose 28% from a year earlier to $909 million, and non-GAAP earnings were $1.72 per share. CNBC attributed Friday’s decline to earnings and revenue that missed Wall Street estimates, weak fourth-quarter guidance and a new investment in drone maker Skydio.
Axon forecast fourth-quarter revenue of $990 million to $1.01 billion and lowered its full-year growth outlook to about 30%, from 32% to 34%. That implies 2026 revenue of about $3.61 billion to $3.63 billion. The company said the reduction reflects three federal Dedrone deployments, totaling about $130 million, that it no longer expects in 2026.
Axon also announced an additional $1.2 billion investment in Skydio, taking its fully diluted ownership to 37%. It cut its 2026 free cash flow forecast to $350 million to $400 million, from a prior target of $450 million.
