Axon misses Q3 revenue estimates, cuts guidance and is downgraded
Axon Enterprise reported third‑quarter 2026 revenue of $908.6 million, up 28% year over year but below the $934.3 million consensus, after a $30 million federal contract was delayed. The company lowered its full‑year free‑cash‑flow outlook to $350 million‑$400 million and forecast Q4 revenue of $990 million‑$1.01 billion, missing the $1.07 billion consensus. Following the results, Craig‑Hallum downgraded the stock to Hold/Neutral with a $390 price target.
Why it matters
The downgrade and weaker guidance caused the stock to tumble 18%, creating a potential buying opportunity for investors who view the demand outlook as still strong. The lower free‑cash‑flow range may affect cash‑flow‑based valuation models.
Key facts
- 1Craig‑Hallum downgraded Axon from Buy to Hold and set a $390.00 price target. quantisnow.com
- 2Axon reported Q3 2026 revenue of $908.6 million, up 28% year over year. finance.yahoo.com
- 3Consensus revenue estimate for Q3 was $934.3 million. finance.yahoo.com
- 4Axon forecast Q4 2026 revenue of $990 million‑$1.01 billion, below the consensus of $1.07 billion. finance.yahoo.com
- 5Full‑year free cash flow guidance was cut to $350 million‑$400 million. finance.yahoo.com
- 6The revenue miss was attributed to a $30 million federal Dedrone contract being recognized in a later quarter. finance.yahoo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.