Axon expects annual revenue to rise about 30% to between $3.61 billion and $3.63 billion, down from its previous forecast of 32% to 34% growth. Analysts polled by FactSet were expecting $3.71 billion. The three deployments had been on pace for 2026; without the delays, Axon said it would have raised the midpoint of its guidance by about 200 basis points. One deployment, worth $30 million, had been expected in the third quarter, and two others totaling $100 million in the fourth.

The company reported third-quarter profit of $57 million, or 68 cents a share, compared with a loss of $2.2 million, or 3 cents a share, a year earlier. Adjusted earnings, excluding certain one-time items, were $1.72 a share, below analysts’ $1.89 estimate. Revenue increased to $908.6 million from $710.6 million, also short of analysts’ $934.3 million forecast. For the fourth quarter, Axon projected revenue of $990 million to $1.01 billion, compared with analysts’ expectation of $1.07 billion.

Axon shares dropped 10% to $345.50 in after-hours trading Thursday. They closed the session down 9.8% at $382.56 and were down 33% for the year.

The additional $1.2 billion investment will bring Axon’s stake in Skydio to roughly 37%, at a pre-money valuation of $5.2 billion. Under the partnership, Axon will be Skydio’s exclusive distributor for public safety in the U.S. and Canada. Chief Executive Rick Smith said the deal gives Axon exclusive channel rights while allowing Skydio to move quickly.