Key Takeaways:
Axon Enterprise Inc.'s connected devices business is accelerating on surging demand for TASER stun guns, body cameras and AI-powered platform solutions, prompting the company to raise its full-year 2026 revenue growth outlook to as much as 32%.
"The momentum across our hardware, software and AI product lines reflects deepening adoption of our integrated public safety ecosystem," Axon Chief Executive Rick Smith said in a statement accompanying the company's first-quarter results.
The Scottsdale, Arizona-based company posted record quarterly revenue of $807 million in Q1 2026, up 34% from a year earlier and marking its ninth consecutive quarter of 30%-plus growth. Software and services revenue rose 35% to $355 million, while AI-related product revenue surged more than 700% year over year and counter-drone revenue jumped over 300%. Annual recurring revenue reached $1.5 billion, also up 35%.
Axon now expects full-year 2026 revenue growth of 30% to 32%, up from its prior forecast, while maintaining an adjusted EBITDA margin of 25.5%. The company reported net income of $169 million and adjusted EBITDA of $202 million for the first quarter. For fiscal 2026, analysts project earnings per share of $1.63, up 30.4% from $1.25 in fiscal 2025, with EPS expected to surge 155.8% to $4.17 in fiscal 2027.
The guidance raise signals management expects demand for connected public safety technology to remain strong as law enforcement agencies and governments continue upgrading their equipment. Investors will watch Axon's fiscal Q2 2026 results, expected in the coming weeks, for further detail on segment margins and the pace of AI product adoption.
Shares of Axon have gained 28.1% year to date, outpacing the S&P 500's 4.3% advance and the Aerospace sector's 3.4% rise. The stock closed at $547.00 on Friday, down 3.3% on the day. Of 20 analysts covering the stock, 15 rate it a "Strong Buy," with an average price target of $677.63, implying about 20% upside from current levels.
This article is for informational purposes only and does not constitute investment advice.
