# Axon Forecasts Fourth-Quarter Revenue of $990 Million to $1.01 Billion

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/51038
Published: 2026-11-07T19:54:38.000Z
Updated: 2026-11-07T19:54:38.000Z
Section: Business

> The outlook excludes two federal Dedrone deployments worth about $100 million because shipment timing is uncertain. Axon also invested $1.2 billion in Skydio, raising its fully diluted stake to 37%.

Axon set fourth-quarter revenue guidance at $990 million to $1.01 billion, excluding two federal Dedrone deployments valued at about $100 million because their shipment timing remains uncertain.

Axon includes deals in its guidance only when it is confident they will ship during the quarter. The two deployments therefore remain outside the forecast while their timing is uncertain.

Higher inventory investment lowered Axon’s expected full-year free cash flow to $350 million to $400 million, down from $450 million. Memory costs are expected to weigh on margins by about 50 basis points this year, with elevated costs remaining a headwind through 2027 and 2028.

Axon also expanded its commercial partnership with Skydio and invested an additional $1.2 billion in the drone maker. About 60% of the investment was cash and 40% was stock. Axon’s fully diluted ownership rose to 37%, and it became Skydio’s exclusive public safety distributor in the United States and Canada.

Axon founder and CEO Patrick Smith described the deal as an expanded partnership and investment. “Today, we announced an expanded commercial partnership with Skydio, along with an additional $1.2 billion investment that takes our fully diluted ownership to 37%,” Smith said.