Axon Enterprise Inc
Q2 2026 Earnings
Market Reaction
Did AXON Beat Earnings? Q2 2026 Results
Axon Enterprise delivered a strong second quarter, beating Wall Street expectations on both the top and bottom lines as accelerating demand for its AI and drone products powered broad-based growth. The company reported Q2 2026 revenue of $904.39 million, up 35.3% year over year and ahead of the $876.46 million consensus, while adjusted EPS of $1.88 edged past the $1.84 estimate by 1.96%. The clearest driver behind the outperformance was momentum across its platform, with Software and Services revenue climbing 36% to $397.84 million and Dedrone counter-drone revenue crossing $100 million, helping Platform Solutions grow 123% to $149.84 million. Investors had been closely watching whether Axon could sustain its high-growth trajectory and justify its premium valuation, and the quarter offered a clear answer; future contracted bookings grew 41% to $15.10 billion, giving management enough confidence to raise its full-year 2026 revenue growth outlook to 32% to 34%, up from its prior 30% to 32% range, while holding Adjusted EBITDA margin guidance steady at approximately 25.5%.
- AI Era Plan revenue grew nearly 700% year over year
- Dedrone revenue surpassed $100 million
- Platform Solutions revenue grew 123% year over year
- Net revenue retention reached 126%
- Annual recurring revenue grew 39% to $1.6 billion
- Future contracted bookings grew 41% to $15.1 billion
- Global tariff refunds of $47 million received in the quarter
- Over 80% of customers deploy at least one integrated hardware-software solution
Forward Guidance & Outlook
Axon raised its full-year 2026 revenue growth outlook to 32%-34%, up from 30%-32% previously, supported by $15.1 billion in future contracted bookings and an expanding pipeline that supports greater than 30% growth in five-year normalized bookings year over year. The company maintains full-year 2026 Adjusted EBITDA margin guidance of approximately 25.5%. Full-year stock-based compensation expense is expected to be approximately $590 million to $620 million, and capital expenditures are expected to be $160 million to $190 million (excluding new headquarters costs).
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Figures from SEC filings and company reports. Not investment advice.