Compared to Estimates, Axon (AXON) Q3 Earnings: A Look at Key Metrics

Core Insights - Axon Enterprise reported a revenue of $710.64 million for the quarter ended September 2025, reflecting a year-over-year increase of 30.6% [1] - The earnings per share (EPS) for the quarter was $1.17, down from $1.45 in the same quarter last year, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $699.57 million by 1.58%, while the EPS fell short of the consensus estimate of $1.63 by 28.22% [1] Financial Performance Metrics - Annual recurring revenue reached $1,252.00 million, surpassing the average estimate of $1,231.82 million from five analysts [4] - Net sales from Connected Devices amounted to $405.4 million, exceeding the six-analyst average estimate of $396.32 million [4] - Net sales from Software and Services were reported at $305.24 million, slightly above the average estimate of $302.27 million [4] - Net sales from Connected Devices - TASER were $237.95 million, marginally higher than the estimated $237.85 million [4] - Net sales from Services also matched the reported figure of $305.24 million against the average estimate of $302.27 million, showing a year-over-year increase of 41.1% [4] - Net sales from Connected Devices - Platform Solutions reached $60.77 million, exceeding the six-analyst average estimate of $55.05 million [4] - Net sales from Products were $405.4 million, compared to the average estimate of $396.32 million, reflecting a year-over-year growth of 23.6% [4] - Net sales from Connected Devices - Personal Sensors were reported at $106.68 million, above the average estimate of $103.42 million [4] - Adjusted gross margin for Software and Services was $234.32 million, slightly below the three-analyst average estimate of $239.95 million [4] - Adjusted gross margin for Connected Devices was $211.13 million, slightly above the three-analyst average estimate of $209.83 million [4] Stock Performance - Over the past month, Axon shares have returned +0.4%, while the Zacks S&P 500 composite has changed by +2.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]