Axon Pours Another $1.2 Billion Into Skydio as Its Shares Slide 14%

TASER maker Axon Enterprise said on Thursday it would invest an additional $1.2 billion in drone maker Skydio and become its exclusive distributor in the US and Canada.

The deal highlights growing demand for drones among police, emergency response and government agencies.

The investment will increase Axon's stake in Skydio to about 37%, valuing the drone company at $5.2 billion pre-money. The deal consists of a mix of cash and Axon stock, with the transactions expected to close in the fourth quarter of 2026 and first quarter of 2027.

Why drones matter to police work

Skydio develops AI-powered autonomous drones used by public safety agencies and military customers across the US. Axon said priority response times at agencies using its Drone as First Responder program have been reduced by as much as 65%, with drones arriving before officers on about 80% of deployed calls.

Shares fell on the earnings miss

Shares of Axon slumped about 14% to $329 in extended trading after it lowered its annual revenue growth forecast and missed analyst estimates for third-quarter profit.

Axon posted an adjusted profit per share of $1.72, missing Wall Street expectations of $1.88 apiece, according to data compiled by LSEG. The company trimmed its full-year 2026 revenue growth forecast to about 30%, citing the exclusion of three Federal Dedrone deployments totalling about $130 million.

Sources

• Reuters — Axon invests $1.2 billion more in drone maker Skydio, lowers annual revenue growth forecast