Axon Enterprise’s stock dropped 9% after missing Wall Street’s Q3 profit expectations, citing tariff constraints. Adjusted earnings were $1.17 per share, below the forecast of $1.52 per share. The connected devices business, including Tasers, brought in over $405 million in revenue, a 24% increase from last year.

Finance chief Bagley expects software business growth to offset margin losses long term. Total revenue rose 31% to $711 million, surpassing analyst expectations. The company reported a net loss of $2.2 million, or 3 cents per share, compared to a profit of $67 million in the same period last year.

Axon boosted its full-year revenue outlook to $2.74 billion and projected fourth-quarter revenue to be between $750 million and $755 million. The company is acquiring Carbyne for $625 million to enhance emergency communications. Axon shares have soared over 40% in the past year as demand for security tools rises.

Read more at CNBC: Axon (AXON) stock Q3 earnings 2025