Axon Enterprise Inc
AXON - Insider Information
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+ FollowMarket Cap$25.52B
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Earnings Call Q3 2026
November 5, 2026 - AI Summary
Q3 performance: strong growth, accelerating software/recurring
- Revenue $909M (+28% YoY); seasonality was “normal” in Q3.
- Software & Services revenue $437M (+43% YoY), the highlight; it’s approaching ~half of total company revenue.
- Strong recurring momentum: ARR $1.8B (+40% YoY) and Net Revenue Retention 126%.
- Profitability: Adj. gross margin 59.2%; Adj. EBITDA $236M (+33% YoY) at 25.9% margin.
Bookings demand remains strong; Q4 outlook positive but guidance reset for timing risk
- Bookings growth strength: total bookings and 5-year normalized bookings up >20% YTD; newer product areas (Dedrone, 911, Fusus, AI) >2x last year and > $1B bookings YTD (management expects potentially double in Q4).
- Company-wide forward demand: $15.8B of future contracted bookings supports the outlook.
- Q4 revenue guidance: $990M–$1.01B; Q4 Adj. EBITDA: ~$245M–$250M (full-year Adj. EBITDA ~$924M–$929M, ~25.6% margin).
- Reset guidance due to Federal Dedrone deal timing delays: prior outlook assumed two large Federal Dedrone deployments (~$100M total); now Q4 outlook assumes none of those 2, only earlier expected programs—removing ~500 bps growth timing risk from guidance.
- Still expects full-year growth >30% (midpoint) for the 5th straight year.
Big strategic move (surprising/most important): expanded Skydio partnership + $1.2B investment
- Axon announced an expanded commercial partnership with Skydio plus an additional $1.2B investment taking fully diluted ownership to 37% (largest investment in Axon history).
- Strategic rationale: Axon gets an exclusive public-safety drone distribution role in the U.S./Canada; Skydio gets capital to scale autonomous drone technology and onshore supply chain.
- Positioning: Axon’s ecosystem extends “both sides of the airspace,” pairing drone inspection with Dedrone counter-UAS and integrating with Axon evidence/workflow stack (Body 5 + AI + Axon 911, etc.).
- 100% ownership? Management framed this as not assured, but implied a potentially stronger shared position over time under the current disciplined structure (win-win today, stronger later).
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$86.91
72.4% downside
Current Fair Value
72.4% downsideOvervalued by 72.4% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $25.52 Billion |
|---|---|
| Enterprise Value | $27.77 Billion |
| Earnings per Share | $1.6 |
| Beta | 1.47 |
| Outstanding Shares | 81,044,000 |
Return
| Return on Equity | 6.88% |
|---|---|
| Return on Assets | 2.93% |
| Return on Invested Capital | 2.37% |
Valuation & Multiples
| P/E Ratio | 98.26 |
|---|---|
| PEG | -3.63 |
| Price to Sales | 7.51 |
| Price to Book Ratio | 6.86 |
| Enterprise Value to Revenue | 8.13 |
| Enterprise Value to EBIT | 158.19 |
| Enterprise Value to Net Income | 107 |
| Total Debt to Enterprise | 0.13 |
| Debt to Equity | 0.99 |
Revenue Sources
No data
Last Earnings Call
Report Date
November 5, 2026
EPS
$1.72
Est. $1.89Revenue
$908.55 M
Est. $934.33 MNext Earnings Call
Expected Date
February 23, 2027
EPS Estimate
$1.98
Consensus analyst estimateRevenue Estimate
$1.00 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 0.88, the ratio is below 1, so institutions hold more calls than puts.
| Put/Call Ratio | 0.8834▼ 39.72% |
|---|---|
| Total Calls | 54,900▼ 96.98% |
| Total Puts | 48,500▼ 97.92% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 11.91%▼ 79.15% |
|---|---|
| Total Invested | $4.02B▼ 90.14% |
| Investors Holding | 567▼ 625.00% |
About Axon Enterprise Inc
6,300 employees
CEO: Patrick Smith
Axon Enterprise, Inc. is a globally operating company known for developing, manufacturing, and selling conducted energy devices (CEDs) under its prominent TASER brand. The company's business is segmented into two core areas: TASER, and S...