AXON · Axon Enterprise, Inc.

Axon Enterprise delivered exceptional Q1 2026 results with revenue of $807 million, surpassing expectations through 34% year-over-year growth fueled by Software & Services at $355 million (up 35%) and Platform Solutions at $111 million (up 95%), reflecting strong demand for AI products (over 700% growth), counter-drone (over 300% growth), TASER 10, and Axon Body 4. Annual recurring revenue hit $1.5 billion, up 35%, with 125% net revenue retention signaling deep customer adoption across international, corrections, federal, and enterprise markets. Profitability strengthened with GAAP net income of $169 million (21% margin) and Adjusted EBITDA of $202 million (25% margin), despite gross margin contraction to 59.1% from tariffs, Dedrone mix, and deployment costs. Operating leverage boosted income by $38 million year-over-year. The company raised its full-year revenue growth outlook to 30-32% (from 27-30%) while maintaining 25.5% Adjusted EBITDA margin guidance, and anticipates over $600 million in operating cash flow and $450 million in free cash flow, underscoring confidence in sustained momentum. Innovations like Axon Vision for real-time threat detection, Axon Guardian for officer safety, expanded Axon Assistant, and Dedrone C2 counter-drone enhancements position Axon to capture expanding opportunities in public safety, justice, corrections, and enterprise, with field trials and launches planned through 2026. CEO Rick Smith emphasized breaking information barriers to prevent harm and accelerate justice, aligning product ecosystem growth with robust financials.