Axon Enterprise Announces $1.2 Billion Investment in Skydio and Adjusts Revenue Guidance
During its third-quarter 2026 earnings call, Axon Enterprise (AXON) announced a strategic $1.2 billion investment to acquire a 37% stake in autonomous drone manufacturer Skydio. This move is designed to secure exclusive public safety distribution rights in the U.S. and Canada, integrating aerial intelligence directly into Axon's software ecosystem. Despite strong growth in software annual recurring revenue, which rose 40% year-over-year to $1.8 billion, the company faces short-term headwinds. Federal contract delays have pushed approximately $130 million in expected revenue out of the 2026 fiscal year. Additionally, Axon has increased inventory by over $100 million to mitigate supply chain risks, a move that is currently impacting free cash flow conversion.
Tickers: $AXON
Topics: acquisition drone technology investment partnership revenue guidance