Axon Enterprise

AXON Q3 2025 Earnings

Reported Nov 4, 2025 at 4:12 PM ET · SEC Source

Q3 25 EPS

$1.17

MISS 24.08%

Est. $1.54

Q3 25 Revenue

$710.6M

BEAT +0.82%

Est. $704.8M

vs S&P Since Q3 25

-34.4%

TRAILING MARKET

AXON -28.0% vs S&P +6.4%

Market Reaction

Did AXON Beat Earnings? Q3 2025 Results

Axon Enterprise delivered a mixed third quarter that sent shares tumbling in after-hours trading, 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 y… Read more Axon Enterprise delivered a mixed third quarter that sent shares tumbling in after-hours trading, 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
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AXON YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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AXON Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 22 Q4 25
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AXON Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25