| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 904.39 | 12.0% | 35.3% |
| Total Income | 904.39 | 12.0% | 35.3% |
| Expenditure | 857.61 | 10.2% | 28.1% |
| PBT | 32.68 | 83.7% | 184.1% |
| Net Profit | 29.43 | 82.6% | 18.5% |
| OPM | 5.17% | 1.55pp | 5.33pp |
| NPM | 3.25% | 17.72pp | 2.15pp |
| EPS | 0.37 | 82.5% | 19.6% |
Axon Reports Q2 2026 Revenue of $904 Million, Up 35% Year Over Year
06 Aug 2026 · 6 Aug, 1:52 am
Summary
Axon Enterprise, Inc. announced strong second quarter 2026 results, with revenue climbing 35% year over year to $904 million, driven by robust growth in both Software & Services and Connected Devices segments. Annual recurring revenue saw a significant 39% increase to $1.6 billion, supported by a net revenue retention rate of 126%. The company reported Adjusted EBITDA of $242 million, achieving a 26.8% margin. Looking ahead, Axon has raised its full-year 2026 revenue growth forecast to 32%-34% while maintaining its Adjusted EBITDA margin outlook at 25.5%, reflecting confidence in continued strong demand and execution.
Key Highlights
- 1
Axon reported Q2 2026 revenue of $904 million, marking a 35% increase year over year and the company's 10th consecutive quarter of revenue growth above 30%.
- 2
Annual recurring revenue grew 39% year over year to $1.6 billion, with net revenue retention reaching 126%.
- 3
Software & Services revenue increased 36% year over year to $398 million, while Connected Devices revenue grew 35% year over year to $507 million.
- 4
The company reported net income of $29 million and Adjusted EBITDA of $242 million, with an Adjusted EBITDA margin of 26.8%.
- 5
Future contracted bookings grew 41% year over year to $15.1 billion, indicating strong future demand.
- 6
Axon raised its full-year 2026 revenue growth outlook to 32% to 34% and maintained its Adjusted EBITDA margin outlook at 25.5%.
Management Comments
Brittany Bagley
Fellow shareholders, Axon delivered another record quarter, with revenue increasing 35% year over year to $904 million — our 10th consecutive quarter of revenue growth above 30%. Demand remained robust among both new and existing customers, supporting our vision to build the operating system for public safety and advancing our mission to protect life. Growth was broad-based across both segments. Software & Services revenue increased 36% year over year to $398 million, driven by new users and increased adoption of premium software offerings, including the AI Era Plan. Connected Devices revenue increased 35% year over year to $507 million, driven by Dedrone, TASER 10 and Axon Body 4. This performance reflects continued adoption across the Axon Ecosystem as customers connect more devices, data and workflows. Forward indicators were equally strong, with future contracted bookings growing 41% year over year to $15.1 billion. Notable wins included two nine-figure agreements with major U.S. cities, including the largest individual TASER order in our history, two eight-figure agreements with major state corrections customers and our first full-scope Axon 911 customer agreement. Momentum was also particularly strong in newer markets, with international and enterprise bookings each approximately tripling year over year. As we expand across these markets, where contract durations are often shorter than in state and local public safety, we are beginning to share new contract bookings on a five-year normalized basis to provide a more comparable view of underlying demand across end markets. On that basis, new contract bookings grew more than 30% year over year. Axon’s strategy is rooted in a relentless focus on delivering better outcomes for our customers and the communities they serve, supported by disciplined investment and execution. Alongside our growth, we delivered a net income margin of 3.3%, an Adjusted EBITDA margin of 26.8% and positive operating cash flow. We now expect 2026 revenue growth of 32% to 34%, up from 30% to 32% previously, and continue to expect an Adjusted EBITDA margin of approximately 25.5%.
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