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AXON's Dedrone Expands in CUAS Capability: Can It Deliver Growth?
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Key Takeaways
AXON strengthened its counter-drone offerings after acquiring Dedrone, boosting airspace security capabilities
Dedrone's partnership with TYTAN expanded CUAS mitigation to address advanced Group 3 drone threats.
Rising global conflicts and terrorism are driving strong demand for AXON's Dedrone platform worldwide.
Axon Enterprise, Inc. (AXON - Free Report) is benefiting from its growing presence in the counter-drone space with strength across its Dedrone offerings and Artificial Intelligence (AI)-powered command-and-control platform. Equipped with advanced radar, radio frequency (RF) and acoustic sensors, the company’s Dedrone offerings enable law enforcement agencies to locate, track and minimize the threat of unauthorized drones.
Axon completed the acquisition of Dedrone, a global leader in airspace security, in October 2024. The inclusion of Dedrone’s advanced airspace technology enhanced AXON's capability to enable customers to protect their communities against drone threats and improve response to critical incidents. The company has also been focusing on strategic partnerships to expand its counter-drone capabilities and customer base.
In October 2025, Axon’s Dedrone business announced its partnership with TYTAN (a leading provider of interceptor systems for Group 3 drones) to boost detection, identification and mitigation capabilities of counter drone equipment. The integration of TYTAN’s kinetic interceptor technology enhances Dedrone’s Counter-Unmanned Aircraft Systems (CUAS) mitigation capability, making it suitable to deploy against Group 3 threats.
The company is expected to continue benefiting from solid demand for CUAS systems, driven by rising terrorism activities and global conflicts. Axon is also expected to witness strong demand for its Dedrone platform from NATO’s airspace defense agencies. This is likely to support the ongoing demand for AXON’s Dedrone and other public safety offerings, positioning it well for sustained momentum in the quarters ahead.
Performance of AXON's Peers
Among its major peers, Kratos Defense & Security Solutions, Inc.’s (KTOS - Free Report) Government Solutions segment’s third-quarter 2025 revenues increased 23% year over year to $260.4 million. The most notable growth in the segment was in its Defense Rocket Systems and Space, Training and Cyber businesses. Kratos Defense derived 75% of its total revenues from this segment during the quarter.
Its another peer, Teledyne Technologies Incorporated’s (TDY - Free Report) Digital Imaging segment’s third-quarter 2025 revenues increased 2.2% year over year to $785.4 million. Higher revenues were augmented by increased demand for Teledyne’s unmanned air systems, commercial infrared imaging components and industrial automation imaging systems. Teledyne generated 51% of its total revenues from this segment in the quarter.
AXON’s Price Performance, Valuation and Estimates
Shares of Axon have declined 17% in the past three months against the industry’s growth of 5.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 76.71X, above the industry’s average of 46.36X. Axon carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AXON’s 2025 earnings has declined 8.1% over the past 60 days.
Image: Shutterstock
AXON's Dedrone Expands in CUAS Capability: Can It Deliver Growth?
Key Takeaways
Axon Enterprise, Inc. (AXON - Free Report) is benefiting from its growing presence in the counter-drone space with strength across its Dedrone offerings and Artificial Intelligence (AI)-powered command-and-control platform. Equipped with advanced radar, radio frequency (RF) and acoustic sensors, the company’s Dedrone offerings enable law enforcement agencies to locate, track and minimize the threat of unauthorized drones.
Axon completed the acquisition of Dedrone, a global leader in airspace security, in October 2024. The inclusion of Dedrone’s advanced airspace technology enhanced AXON's capability to enable customers to protect their communities against drone threats and improve response to critical incidents. The company has also been focusing on strategic partnerships to expand its counter-drone capabilities and customer base.
In October 2025, Axon’s Dedrone business announced its partnership with TYTAN (a leading provider of interceptor systems for Group 3 drones) to boost detection, identification and mitigation capabilities of counter drone equipment. The integration of TYTAN’s kinetic interceptor technology enhances Dedrone’s Counter-Unmanned Aircraft Systems (CUAS) mitigation capability, making it suitable to deploy against Group 3 threats.
The company is expected to continue benefiting from solid demand for CUAS systems, driven by rising terrorism activities and global conflicts. Axon is also expected to witness strong demand for its Dedrone platform from NATO’s airspace defense agencies. This is likely to support the ongoing demand for AXON’s Dedrone and other public safety offerings, positioning it well for sustained momentum in the quarters ahead.
Performance of AXON's Peers
Among its major peers, Kratos Defense & Security Solutions, Inc.’s (KTOS - Free Report) Government Solutions segment’s third-quarter 2025 revenues increased 23% year over year to $260.4 million. The most notable growth in the segment was in its Defense Rocket Systems and Space, Training and Cyber businesses. Kratos Defense derived 75% of its total revenues from this segment during the quarter.
Its another peer, Teledyne Technologies Incorporated’s (TDY - Free Report) Digital Imaging segment’s third-quarter 2025 revenues increased 2.2% year over year to $785.4 million. Higher revenues were augmented by increased demand for Teledyne’s unmanned air systems, commercial infrared imaging components and industrial automation imaging systems. Teledyne generated 51% of its total revenues from this segment in the quarter.
AXON’s Price Performance, Valuation and Estimates
Shares of Axon have declined 17% in the past three months against the industry’s growth of 5.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 76.71X, above the industry’s average of 46.36X. Axon carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AXON’s 2025 earnings has declined 8.1% over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.