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Axon to invest another $1.2 billion in Skydio as revenue outlook weakens
The deal would lift Axon's ownership to about 37%, while its shares fell about 14% after a forecast cut and a quarterly profit miss.
Axon Enterprise said on November 5 it plans an additional investment of $1.2 billion in Skydio, giving the TASER manufacturer about 37% ownership of the drone company. The announcement came alongside a reduction in Axon's revenue growth outlook for 2026.
The transaction values Skydio at $5.2 billion before the investment. Axon will pay with cash and its own stock, with completion of the transactions anticipated in the fourth quarter of 2026 and the first quarter of 2027. The arrangement also makes Axon the sole distributor for Skydio in Canada and the US.
Axon lowered its forecast for 2026 revenue growth to about 30%, saying it had excluded three Federal Dedrone deployments totaling about $130 million. Its third-quarter adjusted profit was $1.72 per share, compared with the $1.88 expected by analysts in estimates compiled by LSEG.
Following the forecast reduction and earnings miss, Axon shares dropped about 14% in extended trading to $329. Skydio's autonomous drones use artificial intelligence and serve US public safety agencies and military customers.