The X10 drone features high-resolution visual and radiometric cameras in modular sensor packages. | Source: Skydio
Axon Enterprise Inc. last week said it has invested $1.2 billion in Skydio Inc., a San Mateo, Calif.-based drone manufacturer. With the investment, Axon gains 20% ownership of Skydio, which is valued at $5.2 billion.
Axon will also become Skydio’s exclusive distributor for public safety in the U.S. and Canada. The companies said they are partnering to bring Skydio drones to public safety agencies across the U.S. Axon is also expanding its Drone as First Responder (DFR) program.
“Within a decade, millions of drones will be working across America. Skydio is positioned to lead in every sector they touch,” stated Rick Smith, the founder and CEO of Axon. “Axon is taking a major stake in one of the most valuable categories in tech, and Skydio stays free to move fast. With exclusive channel rights, Axon will widen its lead in public safety drones as Skydio builds the future of American aerial robotics. Two companies, each the best at what it does, will build something far bigger than either could alone.”
Skydio said it serves more than 1,500 public safety customers. Now, more than 28 million Americans live within two miles of a DFR dock. Founded in 2014, the company claimed that it uses AI-backed autonomy to create drones that are easier to operate, safer to fly, and more capable in complex environments.
Skydio DFR gives first responders earlier visibility
At agencies deploying Skydio DFR, priority response times have been reduced by as much as 65%, said Scottsdale, Ariz.-based Axon. Drones arrive before officers on about 80% of the calls where they are deployed.
That earlier visibility can support safer responses, help de-escalate potentially deadly situations, locate missing children and other vulnerable people, and improve outcomes when every second matters, asserted the company.
“Axon has been an incredible partner in bringing our drones to public safety customers across the U.S.,” said Adam Bry, CEO of Skydio. “We’re excited to deepen that partnership with Axon becoming our exclusive channel for U.S. and Canadian public safety. This investment strengthens our ability to accelerate our technology roadmap, scale our impact in public safety, and continue advancing autonomous flight across every critical industry we serve.”
Axon estimated the total addressable market for DFR at approximately $13 billion in the U.S. and Canada alone. That opportunity is already translating into significant commercial momentum, noted the companies. Skydio said its business is growing rapidly, and it expects about $1 billion in total bookings in its current fiscal year.
Axon’s investment consists of approximately $1.2 billion including a mix of cash and Axon stock. The investment includes both primary capital to Skydio and the purchase of shares from existing Skydio shareholders. Skydio plans to use a portion of the cash consideration as growth capital to accelerate innovation, expand its product portfolio, and bring new drone capabilities to customers faster.
Axon said it expects the transactions comprising the investment to close in the fourth quarter of 2026 and first quarter of 2027. The deal is still subject to customary closing conditions.
Skydio isn’t the only drone provider bringing in big funding rounds. Last week, Zipline, which provides delivery drones, raised $1.5 billion in funding. Zipline said it will use the capital to expand its U.S. manufacturing facilities and hire staffers as it builds a nationwide drone delivery network.
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