Axon Enterprise is making an incremental minority investment of about US$1.2bn in drone maker Skydio, which is expected to raise its stake from about 15% to about 37% on a fully diluted basis, the company said on 5 November 2026.
Why Axon Enterprise, Inc. is buying Skydio, Inc. (incremental minority stake, lifting Axon to about 37% fully diluted)
Axon estimates the drone-as-first-responder market in the US and Canada at about US$13bn. Under the deal Axon becomes Skydio's exclusive distributor to public safety customers in both countries.
“Within a decade, millions of drones will be working across America. Skydio is positioned to lead in every sector they touch.”
Deal terms and financing
About 60% of the consideration, roughly US$720m, is expected to be paid in cash and the rest in Axon common stock, according to Axon's Form 8-K. The investment combines primary capital with purchases of shares from existing Skydio holders at a US$5.2bn pre-money valuation. The initial closing, a purchase of 25 million Series G preferred shares, took place on 5 November, with the remaining transactions expected to close in the fourth quarter of 2026 and the first quarter of 2027.
Market context
Skydio serves more than 1,500 public safety customers and expects roughly US$1bn of bookings this fiscal year. Reuters reported the investment alongside Axon's lowered annual revenue growth forecast.
