Companies /Industrials

Axon Enterprise Inc

NASDAQ: AXON Aerospace & Defense
$611.20
â–² $3.72 (+0.61%) today
Markets closed · 5:12am ET

Q3 2025 Earnings

Reported Nov 4, 2025, 4:12pm ET · SEC source
$1.17
Miss −24.08%
EPS · est. $1.54
$710.6M
Beat +0.82%
Revenue · est. $704.8M
−14.4%
Trailing market
AXON vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%0+8%+16%Nov 4Nov 5report 4:12pm ETearnings+0.2%+5.4%
−8%0+8%+16%Nov 4Nov 5earnings+0.2%+5.4%
AXON +5.4%S&P 500 +0.2%
−8%0+8%+16%Nov 4Nov 5report 4:12pm ETearnings+0.5%+5.4%
−8%0+8%+16%Nov 4Nov 5earnings+0.5%+5.4%
AXON +5.4%NASDAQ +0.5%
0+10%+20%+30%Nov 3Nov 12report 4:12pm ETearnings+1.1%+1.1%
0+10%+20%+30%Nov 3Nov 12earnings+1.1%+1.1%
AXON +1.1%S&P 500 +1.1%
0+10%+20%+30%Nov 3Nov 12report 4:12pm ETearnings+0.3%+1.1%
0+10%+20%+30%Nov 3Nov 12earnings+0.3%+1.1%
AXON +1.1%NASDAQ +0.3%
−9.43%
Day of report
−8.19%
Next session
−10.95%
One week
−13.51%
30 days

S&P 500 over the same 30 days: +0.89%.

Did AXON Beat Earnings? Q3 2025 Results

Axon Enterprise delivered a mixed third quarter that sent shares <a href="https://247wallst.com/investing/2025/11/04/axon-enterprise-plunges-20-in-after-hours-on-q3-earnings-miss/">tumbling in after-hours trading</a>, as a headline earnings miss overshadowed another strong revenue performance. The company posted Q3 2025 revenue of $710.64 million, up 30.6% year over year and nudging past the $704.83 million consensus by 0.82%, marking its seventh consecutive quarter of 30%-plus top-line growth. The stumble came on the bottom line, where non-GAAP EPS of $1.17 fell short of the $1.54 consensus estimate by 24.08%, weighed down partly by modest gross margin compression tied to global tariffs and a richer mix of lower-margin Platform Solutions hardware. Software and Services remained the engine of the business, climbing 41% to $305.24 million and pushing annual recurring revenue to $1.25 billion. Robert W. Baird maintained its Buy rating with a $900 price target following the results. Looking ahead, Axon raised its full-year 2025 revenue outlook to approximately $2.74 billion, implying roughly 31% annual growth, with Q4 revenue guided to $750 million to $755 million.

Key Takeaways
  • Premium software adoption driving Software & Services revenue growth of 41% YoY
  • Strong demand for TASER 10 and Axon Body 4
  • Counter-drone equipment driving Platform Solutions growth of 71% YoY
  • Annual recurring revenue grew 41% to $1.3 billion
  • Net revenue retention of 124%
  • Future contracted bookings grew 39% to $11.4 billion

Forward Guidance & Outlook

Axon raised its full-year 2025 revenue outlook to approximately $2.74 billion, representing approximately 31% annual growth, up from a prior guidance range of $2.65 billion to $2.73 billion. For Q4 2025, the company expects revenue of $750 million to $755 million (approximately 31% YoY growth) and Adjusted EBITDA of $178 million to $182 million (approximately 24% margin). Full-year 2025 Adjusted EBITDA margin is expected at approximately 25%. Stock-based compensation is expected at approximately $580 million to $630 million, and CapEx is expected in the range of $170 million to $180 million.

AXON YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$200.0M$400.0M$600.0M$544.3M$710.6MRevenue$330.7M$427.3MGross Profit
$0$200.0M$400.0M$600.0MRevenueGross Profit

AXON Revenue by Segment

Connected Devices$405.4M+23.6%
Software & Services$305.2M+41.1%
TASER$238.0M+17.0%
Platform Solutions$60.8M+71.0%
Personal Sensors$106.7M+20.0%

AXON Revenue by Geography

United States$593.9M
Rest of World$116.7M

Figures from SEC filings and company reports. Not investment advice.