Overview
- Adjusted EPS came in at $1.17 versus about $1.52 expected as tariff-driven supplier costs compressed margins, resulting in a GAAP net loss of $2.2 million.
- Revenue rose 31% to $710.6 million, beating estimates, and the company guided fourth-quarter sales to $750 million to $755 million, above consensus.
- Axon raised its full-year 2025 revenue target to roughly $2.74 billion, updating investors that tariff impacts are reflected in gross margins going forward.
- Software & Services revenue jumped 41% to $305 million, underscoring the shift toward higher-margin, recurring software growth.
- Shares fell about 20% in extended trading after the report before partly recovering as Axon announced a $625 million deal to acquire Carbyne, expected to close in the first quarter of 2026.