Axon Enterprise Sinks 18% to Two-Year Low After Q3 Miss and Revenue Guidance Cut on Dedrone Delays

Axon Enterprise shares collapsed 18.18% on November 6, 2026, hitting a 52-week low of $334.96 and their lowest level in two years, after the company reported a weaker-than-expected third quarter and slashed its full-year revenue outlook. The selloff made AXON the worst performer in both the S&P 500 and the Nasdaq 100 that session.

Axon posted Q3 2026 revenue of $909 million, up 28% year over year but short of the analyst consensus of $931 million by 2.4%. Adjusted earnings per share came in at $1.72, up 38.7% from a year earlier but missing the consensus estimate of $1.90 by 9.5%. Software and services revenue accelerated to 43% year-over-year growth, reaching $437 million, while Connected Devices revenue rose 16.3% to $471.5 million.

The central problem was Dedrone, Axon's counter-drone unit. Three large federal Dedrone deployments, representing approximately $130 million in revenue, have been delayed and removed from the 2026 forecast entirely. One deployment alone caused roughly $30 million in revenue to be deferred within the quarter. As a result, Axon cut its full-year revenue guidance to $3.61-$3.63 billion, implying about 30% annual growth, down from a prior expectation of 32-34% growth. For Q4 2026, management guided to revenue of $990 million to $1.01 billion, with adjusted EBITDA of $245-$250 million.

Multiple analysts trimmed their price targets in response, including Needham, which cut its target citing the revenue guidance reduction. AXON received downgrades across Wall Street on the day. The seventeen analysts covering the stock carry an average 12-month price target of $688.38 and a consensus rating of Moderate Buy, with 14 buys and 3 holds. The stock's RSI dropped to technically oversold levels by the close.