Axon to invest $1.2 billion more in Skydio and distribute its drones
The deal would give Axon about 37% of the drone maker and exclusive US and Canadian public-safety distribution rights, as Axon cut its 2026 growth outlook.
Axon Enterprise said on November 5 it would invest another $1.2 billion in autonomous-drone maker Skydio and become its exclusive distributor in the United States and Canada, according to Reuters. The deal would raise Axon’s stake to about 37% and give it public-safety distribution rights in both countries, RTTNews reported.
The transactions are expected to close in the fourth quarter of 2026 and first quarter of 2027, subject to customary conditions, RTTNews reported. Reuters put Skydio’s pre-investment valuation at $5.2 billion. Skydio makes AI-powered autonomous drones used by public-safety agencies and military customers across the United States, Reuters reported.
Axon’s third-quarter revenue rose 28%
Axon reported third-quarter revenue of $908.6 million, up 28% from a year earlier, and net income of $57 million, compared with a $2.2 million loss a year earlier, RTTNews reported. Adjusted net income reached $143.5 million, or $1.72 per share, up from $102.7 million, or $1.24 per share, a year earlier.
Software and Services revenue increased 43% to $437 million, while Connected Devices revenue rose 16% to $471.5 million. Within Connected Devices, Platform Solutions revenue more than doubled to $125 million, supported by demand for drones and counter-drone technology, RTTNews reported.
Axon said agencies using its Drone as First Responder program had reduced priority response times by as much as 65%, with drones arriving before officers on about 80% of deployed calls, Reuters reported. Those performance figures were Axon’s own claims.
Axon lowers its 2026 revenue-growth forecast
Alongside the investment announcement, Axon reduced its full-year 2026 revenue-growth outlook to about 30%, from a previous forecast of 32% to 34%. Reuters reported that Axon cited the exclusion of three Federal Dedrone deployments totaling about $130 million. RTTNews put projected full-year revenue at about $3.61 billion to $3.63 billion.
Axon’s adjusted earnings of $1.72 per share fell short of the $1.88 analysts expected, according to LSEG data cited by Reuters. Axon shares fell about 14% to $329 in extended trading after the forecast cut and profit miss, Reuters reported. For the fourth quarter, Axon forecast revenue of $990 million to $1.01 billion and adjusted EBITDA of $245 million to $250 million, RTTNews reported.
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Sources and context
- Axon invests $1.2 billion more in drone maker Skydio, lowers annual revenue growth forecastReuters, republished by CNA
- Axon Swings To Profit In Q3; Invests $1.2 Bln In SkydioRTTNews
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