Axon Enterprise Inc (NASDAQ:AXON) stock plunges 11.96% (As on November 5, 11:11:58 AM UTC-4, Source: Google Finance) after the company missed analysts’ estimate for third-quarter profit, pressured by higher costs resulting from the implementation of tariffs. Earlier this year, the company had flagged that the tariff war could disrupt its operations by hindering the procurement of imported components for its products and limiting exports to overseas markets. Axon also indicated that it might consider raising prices due to tariff-driven cost pressures on suppliers. The Arizona-based company is a leading provider of police body cameras in the United States and supplies drone systems to law enforcement across North America, Europe and Australia. Separately, Axon said it would buy emergency communications and response platform Carbyne in a deal valuing it at $625 million. The transaction is expected to close in the first quarter of 2026. Further, Annual recurring revenue grows 41% to $1.3 billion. Net loss was $2 million, with non-GAAP net income of $98 million and Adjusted EBITDA of $177 million

Moreover, Software & Services revenue increased 41% year over year to $305 million, driven by adoption of premium software features and an expanding user base. The net revenue retention remained strong at 124%. Connected Devices revenue rose 24% year over year to $405 million, reflecting strength across categories — including TASER revenue of $238 million, up 17% year over year; Personal Sensors revenue of $107 million, up 20%; and Platform Solutions revenue of $61 million, up 71%.

AXON in the third quarter of FY25 has reported the adjusted earnings per share of $1.17, missing the analysts’ estimates for the adjusted earnings per share of $1.52 per share, according to data compiled by LSEG. The company had reported the adjusted revenue growth of 31 percent to $710.6 million in the third quarter of FY25, beating the analysts’ estimates for revenue of $703.5 million.

The company now expect fourth quarter revenue in the range of $750 million to $755 million, representing approximately 31% year-over-year growth, and fourth quarter Adjusted EBITDA in the range of $178 million to $182 million, representing approximately 24% Adjusted EBITDA margin. This guidance implies full-year 2025 revenue of approximately $2.74 billion, representing approximately 31% annual growth and a full-year Adjusted EBITDA margin of approximately 25%.

Meanwhile, in September, AXON introduced Axon Body Workforce (ABW) Mini, the second dedicated enterprise product, which the company expects to begin early deployments in the U.S. and Canada in the first half of 2026, with general availability by mid-year.