Axon Execs Sold $21M Before Q3 Miss and Guidance Cut
Three Axon executives sold roughly $21 million in shares in late August and early September at prices between $502 and $635. The stock plummeted 17 percent following an earnings miss and guidance cut
Axon Execs Sold $21M Near Peak Before Q3 Miss
NEW YORK, November 7 —
Three Axon Enterprise, Inc. (AXON) executives sold roughly $20 million in shares at prices between $502 and $635 between late August and early September 2026. The company then reported its first earnings miss in at least four quarters, cut annual revenue guidance, and sent the stock down 17% in a week to a two-year low.
- Q3 2026 EPS of $1.72 missed the $1.89 consensus by $0.17, the first miss after three consecutive beats.
- CEO Smith, President Isner, and CPO Kunins sold at $502, $635 in Aug-Sep 2026; stock now at $313.
- Axon commits $1.2B more to Skydio against $96M in trailing free cash flow and $2.99B in total debt.
The Exit Staircase
CPO & CTO Jeffrey Kunins sold approximately 9,605 shares on August 21 at $605 to $635. President Joshua Isner followed August 31 with roughly 16,775 shares at $561 to $595. CEO Patrick W. Smith closed the sequence on September 8: 10,000 shares at $502 to $513 for approximately $5.09 million. Chief Legal Officer Isaiah Fields added 1,017 shares on September 11. All four were open-market, voluntary dispositions; total insider net sales over the period reached $21.23 million with zero purchases recorded. The sales traced a descending price staircase in the weeks before the guidance cut that sent the stock to $313.
The Federal Drone Problem
Axon Enterprise makes TASER devices, body cameras, in-car cameras, and drone and counter-drone technologies through its Connected Devices segment, alongside cloud evidence software (Axon Evidence, Draft One, Axon Records) serving federal, state, and local agencies. The company had beaten consensus EPS estimates for three straight quarters, most sharply by 34.4% in Q4 2025. That streak ended November 5 when Axon cited federal drone deployment delays as the primary driver of a Q3 EPS miss and cut its annual revenue growth forecast. A separate November 5 8-K also disclosed a $1.2 billion additional investment in drone maker Skydio, a bet that doubles down on the exact pipeline that just disappointed.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| AXON | $25.4B | 32.8x | -48.1% |
| APP | $129.6B | 18.9x | -42.6% |
| HWM | $81.8B | 31.0x | -0.4% |
| AVAV | $5.7B | 25.6x | -65.8% |
| ANET | $215.8B | 29.6x | +18.2% |
| DDOG | $64.6B | 56.7x | -8.7% |
What Would Prove the Bears Wrong
The bull case rests on 27.9% trailing revenue growth to $3.42 billion and a consensus analyst target of $680, a figure predating the November 5 guidance cut. Axon Enterprise's balance sheet shows $2.99 billion in total debt against $1.66 billion in cash and $96 million in trailing free cash flow; the Skydio 8-K's Item 3.02 indicates equity was part of the deal, adding dilution. Axon's Q4 guidance now hinges on whether federal drone deployments resume or the delays extend. See the full DCF model and price target →
Current fundamentals, valuation and filing history for Axon Enterprise, Inc. (AXON) are tracked on its Basis Report page.
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Frequently Asked Questions
Did Axon executives sell stock before the earnings miss?
Yes. CEO Patrick Smith, President Joshua Isner, and CPO Jeffrey Kunins sold roughly $21 million in shares between $502 and $635 in late August and early September. All sales were open-market, voluntary dispositions with zero purchases recorded during this period.
Why did Axon stock drop 17 percent?
Axon reported its first earnings miss in at least four quarters on November 5, with Q3 EPS of $1.72 missing the $1.89 consensus by $0.17. The company also cut its annual revenue growth forecast, citing federal drone deployment delays as the primary driver.
Who specifically sold Axon shares?
CEO Patrick Smith sold 10,000 shares on September 8 for approximately $5.09 million. President Joshua Isner sold roughly 16,775 shares on August 31 at $561, $595. CPO Jeffrey Kunins sold approximately 9,605 shares on August 21 at $605, $635.
How strong is Axon's balance sheet?
Axon holds $2.99 billion in total debt against $1.66 billion in cash and only $96 million in trailing free cash flow. This position is strained further by the company's additional $1.2 billion investment in Skydio announced on November 5.
What does Axon Enterprise manufacture?
Axon makes TASER devices, body cameras, in-car cameras, and drone and counter-drone technologies through its Connected Devices segment, plus cloud evidence software including Axon Evidence, Draft One, and Axon Records for federal, state, and local agencies.
Axon Enterprise stock continued falling Friday — now trading at $313, roughly half what several senior executives received when they sold shares in August and September 2026 — after the company's first quarterly earnings miss in at least a year and a $1.2 billion bet on a drone maker whose federal contracts are stalling.