Axon beats Q1 revenue estimates, raises FY outlook

Axon Enterprise

06/05/2026 21:10

Overview

US public safety tech firm's Q1 revenue rose 34% yr/yr, beating analyst expectations

Adjusted EPS and net income increased yr/yr, driven by higher operating income

Company raised 2026 revenue growth outlook to 30%-32% from 27%-30%

Outlook

Axon raises full-year 2026 revenue growth outlook to 30%-32%, up from 27%-30%

Company maintains full-year 2026 Adjusted EBITDA margin guidance at 25.5%

Axon expects 2026 capital expenditures of $160 mln to $190 mln

Result Drivers

SOFTWARE & SERVICES GROWTH - Co said 35% yr/yr revenue growth in Software & Services was driven by new users and increased adoption of premium software offerings

AI AND COUNTER-DRONE DEMAND - AI products revenue rose over 700% and counter-drone product revenue increased over 300% yr/yr, reflecting strong customer adoption

GROSS MARGIN PRESSURE - Gross margin declined yr/yr due to global tariffs and increased professional services costs related to product deployments, especially Dedrone

Company press release: ID:nPn7R50RZa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$807 mln
$778.45 mln (15 Analysts)
Q1 EPS
$2.05
Q1 Net Income
$169 mln
Q1 Adjusted EBITDA
$202 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for Axon Enterprise Inc is $686.00, about 80.2% above its May 5 closing price of $380.60

The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 64 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)