SCOTTSDALE, Arizona, May 6, 2026, 14:01 MST
- Axon bumped its 2026 revenue growth outlook to 30%–32%, an increase from the earlier 27%–30% range, after first-quarter revenue came in ahead of estimates.
- Axon reported a 35% jump in software and services revenue to $355 million. Artificial intelligence product revenue? That surged by more than 700%.
- The Taser and body-camera maker pointed to margin pressure, citing tariffs, the Dedrone product mix, and deployment costs.
Axon Enterprise posted a 34% surge in first-quarter revenue on Wednesday and boosted its full-year sales guidance, the company said, with demand for police software, Tasers, body cameras, counter-drone tech and AI products staying strong even as costs weighed.
Revenue at the Scottsdale, Arizona-based company climbed to $807 million, beating the $780.6 million Zacks consensus estimate cited just a day ago. Adjusted earnings landed at $1.61 per share—just missing the $1.66 Zacks forecast, but slipping past FactSet’s $1.60 figure, which appeared in market data feeds after results dropped.
Timing isn’t incidental here. Axon wants to convince investors it has growth left outside its main Taser business, even as shares have struggled this year. MarketScreener data puts the stock at $385.86 at the close on Nasdaq, up 1.38% for the day, but still roughly 32% lower for 2026.
Axon raised its 2026 revenue growth outlook to a range of 30% to 32%, up from the previous 27% to 30% forecast. The company is sticking with its adjusted EBITDA margin goal of 25.5%. Adjusted EBITDA removes interest, taxes, depreciation, amortization and certain other expenses from profit calculations.
Software and services kept their shine, with revenue climbing 35% to $355 million. Annual recurring revenue — basically the annualized total from steady software and service contracts — also jumped 35%, hitting $1.5 billion.
Axon reported a surge of over 700% year-over-year for its AI Era Plan lineup—Draft One and Axon Assistant both included. Chief Executive Rick Smith pointed to “greater transparency and higher expectations” among customers, adding that the company was “breaking down information barriers” through its secure platform. Axon IR
Axon’s connected devices segment—which covers Tasers, body cams, and various other pieces of hardware—jumped 33% to $453 million. Platform Solutions nearly doubled, up 95%, thanks in part to Dedrone, the company’s unit focused on counter-drone technology. These systems spot, track, or disrupt drones that aren’t authorized.
That move squarely lines up Axon with a broader set of public-safety tech rivals, beyond its usual hardware or weapons foes. In its securities filing, Axon specifically lists Motorola Solutions’ CommandCentral Aware as a competitor to Fusus, Axon’s real-time operations platform. Motorola, for its part, also markets public-safety software, video surveillance, and body-camera products to law enforcement and security agencies.
The catch: margins and cash took a hit. Axon’s gross margin dropped 150 basis points from last year, landing at 59.1%. The company cited global tariffs, increased Dedrone revenue, and rising professional services expenses. Operating cash flow swung to a $32 million outflow, compared with a $26 million inflow a year ago, with inventory spending and higher interest costs partly to blame.
It wasn’t a unanimous call going into earnings. On Tuesday, Bob Lang at TheStreet Pro noted traders seemed to be keeping their distance, describing the stock as moving in a narrow band and the chart as “not pricing in too much excitement.” TheStreet Pro
Axon’s growing backlog leaves some breathing space, though it also ups the ante on execution. The company’s future contracted bookings shot up 44% to $14.3 billion. Axon anticipates delivering on 20% to 25% of those commitments within the next year, leaving the bulk to be recognized over the next ten years.
The next question: can stronger sales actually deliver more consistent cash and ease the pressure on margins? Axon is sticking to its forecast, projecting operating cash flow above $600 million for the full year and free cash flow near $450 million—even with the cash drain seen in the first quarter.
