Axon Vision, a subsidiary of Axon Enterprise, announced on December 3 2025 a strategic cooperation agreement with Leonardo DRS to develop AI‑driven counter‑unmanned aerial system (C‑UAS) solutions for the U.S. defense market.
The partnership blends Axon Vision’s AI‑enhanced perception and autonomy technologies with Leonardo DRS’s proven counter‑UAS hardware and integration expertise, creating a platform that can be mounted on combat vehicles to improve lethality, survivability and situational awareness. It marks the first major step for Axon beyond its core public‑safety hardware and software, positioning the company to compete for large DoD programs that demand integrated sensor‑AI solutions.
The U.S. counter‑UAS market is expanding rapidly as the proliferation of drones increases the need for detection, tracking and neutralization capabilities. Axon’s recent financials underscore its capacity to pursue this opportunity: revenue rose 31% year‑over‑year to $711 million in Q3 2025, and adjusted EBITDA reached $177 million, a 24.9% margin, reflecting strong execution and a growing high‑margin AI platform business.
In a statement, Ido Rozenberg, president, CTO and co‑founder of Axon Vision, said the alliance “marks a significant step in bringing Axon Vision’s advanced AI solutions to the U.S. defense market. Together, we are delivering a true powerhouse solution for combat vehicles, combining world‑class sensing and integration with cutting‑edge AI to enhance lethality, survivability and overall battlefield dominance.” The comment signals confidence in the defense expansion and the expected synergies between the two companies.
While the partnership is strategically positive, investors have remained cautious due to valuation concerns and broader financial headwinds, keeping the company’s stock near a 52‑week low. The market reaction has not yet reflected a direct upside from the announcement, suggesting that the partnership’s impact will be realized over time.
The alliance is expected to accelerate Axon’s defense revenue pipeline and broaden its product portfolio, potentially offsetting headwinds in the public‑safety segment and supporting long‑term growth.
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