Axon posts lower quarterly gross margin on higher mix of services, new product scaling

Axon Enterprise

05/08/2026 23:23

Aug 5 (Reuters) - TASER-maker Axon Enterprise AXON.O posted lower second-quarter gross margin on Wednesday, weighed by a higher mix of less lucrative professional services and investments in scaling new product offerings. 
Shares of the Scottsdale, Arizona-based company fell more than 6% in aftermarket trading following the results. 

Here are some details: 
Axon manufactures TASER energy weapons, body cameras, drones and real-time surveillance systems for law enforcement agencies. It supplies police body cameras in the U.S.    
Adjusted gross margin in Axon's software and services segment fell 3.8 percentage points to 75.1% in the second quarter from a year ago, hurt by its services business.
Under the professional services business, the company supports implementation, configuration and ongoing workflow integration.
The software-only segment's gross margin exceeded 80%.
The company's gross margin fell 40 basis points to 62.9%. The impact on quarterly gross margin was partly offset by strong performance in the connected devices segment. 
Axon earned $1.88 per share on an adjusted basis for the quarter ended June 30, compared with analysts' average estimate of $1.85, according to data compiled by LSEG.
Its quarterly revenue was $904 million, above estimates of $877 million.

 (Reporting by Aishwarya Jain in Bengaluru; Editing by Shreya Biswas)
 ((Aishwarya.Jain@thomsonreuters.com;))