Overview
- Adjusted earnings came in at $1.17 per share for Q3 versus $1.52 expected, and the stock fell about 20% across after-hours and premarket trading.
- Executives said U.S. tariffs drove a year-over-year margin step-down in the first full quarter of impact, with adjusted gross margin at 62.7%.
- Revenue rose 31% to roughly $711 million, beating estimates, and Axon forecast fourth‑quarter sales of $750 million to $755 million, above consensus.
- The company raised its full‑year revenue outlook to about $2.74 billion, and software and services revenue grew 41% to $305 million.
- Axon announced a $625 million deal to acquire emergency communications platform Carbyne, expected to close in the first quarter of 2026, as J.P. Morgan and TD Cowen characterized the sell‑off as overdone.