Axon makes an additional $1.2 billion investment in drone manufacturer Skydio and lowers its annual revenue growth forecast

Reuters, November 5 - TASER manufacturer Axon Enterprise (AXON.O) said on Thursday it will increase its investment in drone maker Skydio by $1.2 billion and become its exclusive distributor in the United States and Canada.

The deal highlights the growing demand for drones from police, emergency response agencies, and government institutions.

Here are more details:

• Axon lowered its annual revenue growth forecast and third-quarter profit missed analyst estimates, with its shares plunging about 14% in after-hours trading to $329

• This investment will raise Axon's stake in Skydio to around 37%, with the drone company's pre-money valuation at $5.2 billion

• Skydio develops AI-based autonomous drones serving public safety agencies and military clients across the United States

• Reportedly, agencies adopting Axon's “Drone as First Responder” (DFR) program have seen priority response times reduced by as much as 65%, and in around 80% of dispatch calls, drones arrive at the scene ahead of officers

• The deal includes a mix of cash and Axon stock and is expected to close in the fourth quarter of 2026 and the first quarter of 2027

• Additionally, according to data compiled by London Stock Exchange Group (LSEG), Axon reported adjusted earnings per share of $1.72, missing Wall Street's expectation of $1.88 per share

• The company lowered its full-year revenue growth forecast for fiscal 2026 to about 30%, citing the removal of three federal Dedrone deployment projects, with a total value of around $130 million

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