Axon Q2 revenue beats estimates, outlook raised

Axon Enterprise

05/08/2026 21:14

Overview
U.S. public safety tech firm's Q2 revenue grew 35% yr/yr, beating analyst expectations
Net income fell yr/yr, mainly due to a prior-year tax benefit
Company raised 2026 revenue growth outlook to 32%-34% from 30%-32%

Outlook
Axon raises 2026 revenue growth outlook to 32%-34%, up from 30%-32% previously
Company maintains full-year 2026 Adjusted EBITDA margin outlook at 25.5%
Axon expects 2026 capital expenditures of $160 mln to $190 mln

Result Drivers
SOFTWARE & SERVICES GROWTH - Revenue rose 36% yr/yr, driven by new users and increased adoption of premium software offerings, including the AI Era Plan
CONNECTED DEVICES DEMAND - Revenue up 35% yr/yr, led by Dedrone, TASER 10 and Axon Body 4 adoption
GLOBAL TARIFF REFUNDS - Gross margin improvement in Connected Devices segment was partly due to global tariff refunds

Company press release: ID:nPn5WsqT7a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$904 mln
$876.46 mln (15 Analysts)
Q2 Net Income
 
$29 mln
 
Q2 Adjusted EBITDA
 
$242 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 $687.50, about 13.2% above its August 4 closing price of $607.20
The stock recently traded at 65 times the next 12-month earnings vs. a P/E of 46 three months ago

Reuters Recommended Reads
Aug 3 - Palantir Q2 revenue beats expectations; raises outlook
Aug 4 - Leidos lifts annual forecasts on strong defense demand
Aug 4 - Kratos Defense Q2 revenue jumps 30.5%, raises 2026 outlook 

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.)