AXON ENTERPRISE, INC. Q1 FY26 Results

Summary

Axon Enterprise, Inc. delivered a strong first quarter in 2026, reporting record revenue of $807 million, a 34% increase year over year, driven by robust demand across its product ecosystem. The company achieved a net income of $169 million, representing a 21.0% margin, and an Adjusted EBITDA of $202 million, up 30% year over year with a 25.0% margin. Software & Services revenue was a key driver, growing 35% to $355 million, supported by 125% net revenue retention and $1.5 billion in annual recurring revenue. Looking ahead, Axon raised its full-year revenue growth outlook to 30% to 32% and maintained its Adjusted EBITDA margin expectation of 25.5%, anticipating strong positive free cash flow for the year.

Key Highlights

1. 1

   Axon reported Q1 2026 revenue of $807 million, marking a 34% increase year over year.

2. 2

   Software & Services revenue grew by 35% to $355 million, with AI products seeing over 700% year-over-year growth.

3. 3

   Net income for the quarter significantly increased to $169 million, representing a 21.0% net income margin, up from $88 million (14.6% margin) in the prior year.

4. 4

   Adjusted EBITDA rose by 30% year over year to $202 million, achieving an Adjusted EBITDA margin of 25.0%.

5. 5

   Annual recurring revenue reached $1.5 billion, growing 35% year over year, while future contracted bookings expanded by 44% to $14.3 billion.

6. 6

   The company raised its full-year revenue outlook to a range of 30% to 32% annual growth, while maintaining its Adjusted EBITDA margin expectation of 25.5%.