Scottsdale – November 05, 2026 -- Axon has made the largest single investment in its history, putting $1.2 billion into drone maker Skydio and raising its fully diluted ownership to 37%. The company also became Skydio's exclusive public safety distributor in the U.S. and Canada, and reported third-quarter Software & Services revenue up 43% year over year to $437 million.
Skydio deal extends Axon's reach into Drone as First Responder
Skydio expects about $1 billion of bookings this fiscal year. Axon says deployed Skydio docks through Axon Air have more than doubled year over year.
Axon acts as a direct channel partner, and revenue is recognized on a net basis in Software & Services. Axon plans to combine Skydio with Axon 911, Axon Fusus, digital evidence and Dedrone airspace security into one integrated platform. Skydio remains free to pursue aerial robotics across other industries.
Three delayed federal Dedrone deployments cut about $130 million from 2026 revenue
Axon expects full-year revenue growth of approximately 30%, following four consecutive years above 30%. The reduction from prior expectations is concentrated in three large Federal Dedrone deployments worth roughly $130 million. One is a $30 million deployment previously expected in the third quarter. The other two total $100 million and were expected in the fourth quarter.
Had those deployments stayed on pace, full-year growth would be nearly 500 basis points above current guidance and about 200 basis points above prior guidance.
For the fourth quarter, Axon guides to revenue of $990 million to $1.01 billion and Adjusted EBITDA of $245 million to $250 million.
Software & Services growth accelerates as AI revenue passes $100 million
Real-time operations, Axon Records, Axon AI, Axon 911 and Dedrone software collectively reached an annual revenue run rate of nearly $500 million, more than double the prior year. AI annual recurring revenue surpassed $100 million, and AI bookings are up over 50% year to date.
Net income reached $57 million, versus a net loss in the prior-year period. Adjusted EBITDA rose 33% to $236 million.
Platform Solutions revenue climbs 106% to $125 million
Connected Devices revenue increased 16% to $472 million, led by Platform Solutions. Axon says Platform Solutions would have grown faster without the roughly $30 million Federal Dedrone deployment that slipped out of the quarter.
New five-year bookings are up 25% year to date. Selected third-quarter wins include:
- $258 million AI Era Plan and body camera expansion with a state Department of Corrections
- $115 million OSP 10 Premium, AI Era Plan and Axon Fusus agreement with a state Department of Corrections
- $40 million OSP 10 Premium and Axon Fleet 3 Advanced expansion with a major metro police department
- $21 million TASER 10 agreement with an international police agency
- $18 million Dedrone deployment with a U.S. federal agency
- $10 million TASER and body-worn camera agreement with an enterprise healthcare provider
Axon Body 5 brings 25x processing power and Guardian moves to general availability
Axon introduced Axon Body 5 in October with 25 times the processing power of prior-generation cameras and 20% longer battery life. It records in 4K, and an optional Pro model adds a near-focus camera for scanning driver's licenses into Axon Fusus. Front-facing speakers on the Pro model support real-time translation through Axon Assistant.
Axon Guardian, part of the AI Era Plan, is now generally available. Escalation Detection on Body 4 or Body 5 cameras flags potential conflict in real time and alerts Axon Fusus for remote review of the livestream. Approach Alert on Axon Fleet 3 detects when the door of a stopped vehicle opens and notifies the officer on the in-car display and body-worn camera.
Axon also launched TASER Ion, a more flexible TASER device for a broader range of users, and took early steps toward Axon Gravity, its broader superintelligence vision for public safety workflows.