Axon Enterprise reported second-quarter 2026 revenue of $904 million, up 35% year over year, beating analyst expectations and prompting the company to raise its full-year guidance, signaling strong momentum in public safety technology driven by AI adoption and expanding customer deployments.
The earnings beat came in above the consensus estimate of $868.4 million, with revenue growth fueled by broad-based strength across both business segments. Software & Services revenue grew 36% to $398 million, while Connected Devices revenue increased 35% to $507 million, reflecting rising demand for Axon’s integrated ecosystem of cameras, drones, software and AI-powered tools.
Axon raised its full-year 2026 revenue growth outlook to a range of 32% to 34%, up from the prior guidance of 30% to 32%. The company maintained its Adjusted EBITDA margin target at 25.5%. This marks Axon’s tenth consecutive quarter of revenue growth exceeding 30%, underscoring sustained customer demand across law enforcement, corrections and enterprise security markets.
AI capabilities emerged as a major growth driver in the quarter. Revenue from Axon’s AI Era Plan—a premium software offering that includes advanced analytics and automation tools—grew nearly 700% year over year. The company also benefited from strong adoption of Dedrone, its counter-drone platform, which surpassed $100 million in quarterly revenue for the first time.
Forward indicators pointed to sustained strength ahead. Future contracted bookings—a measure of unfulfilled customer commitments—grew 41% year over year to $15.1 billion, suggesting robust pipeline momentum. Annual recurring revenue, which tracks high-margin subscription services, increased 39% to $1.6 billion, and net revenue retention reached 126%, indicating that existing customers are expanding their use of Axon’s platform.
The company highlighted several large customer wins during the quarter, including two nine-figure agreements with major U.S. cities and Axon’s largest individual TASER order in company history. International and enterprise bookings each approximately tripled year over year, signaling expansion into new geographic and vertical markets beyond traditional law enforcement.
Axon’s integrated ecosystem—connecting hardware sensors, cloud-based evidence management, real-time operations tools and AI-driven insights—continues to drive customer adoption and expansion. The company cited examples including Brookhaven Police Department, which reported a 53-second average drone response time and cleared 10% of calls without dispatching an officer, and the 2026 World Cup deployment across 11 U.S. stadiums and 50 additional sites, which demonstrated the platform’s ability to scale across complex, multi-agency missions.
Adjusted EBITDA grew over 40% year over year to $242 million, with an Adjusted EBITDA margin of 26.8%. The company reported net income of $29 million, or $0.36 per diluted share, and non-GAAP net income of $155 million, or $1.88 per diluted share. Operating cash flow improved significantly to $20 million from an outflow of $92 million in the prior year, reflecting stronger profitability and improved working capital management.
For the full year, Axon expects stock-based compensation of $590 million to $620 million and capital expenditures in the range of $160 million to $190 million, supporting R&D investment, facility expansion and new product development.
Sources
- PRNewswire — Axon’s Q2 2026 earnings announcement detailing revenue of $904 million, guidance raise to 32-34%, segment performance, and forward metrics
- Zacks Investment Research — Pre-earnings consensus revenue estimate of $868.4 million for Q2 2026
- Axon Investor Relations — Q1 2026 earnings and prior guidance history showing progression from 27-30% to 30-32% to current 32-34% guidance
