Strong Revenue Growth
Total revenue of $807 million, up 34% year-over-year; marks ninth consecutive quarter with >30% growth.
Axon Enterprise
· AXON
May 6th, 2026
Summary
- Earnings Call Date:
- 2026-05-06
- Change Since:
- +15.26%
- Next Earnings Date:
- 2026-08-11
Earnings Call Sentiment
PositiveThe call was strongly positive: broad-based double-digit growth across revenue (+34%), ARR (+35%) and NRR (125%), rapid AI and Dedrone adoption (AI bookings +140%, AI revenue +700% YoY, Dedrone bookings +500%, revenue +300%+), upgraded guidance (30%–32% revenue growth) and sizable backlog ($14.3B, +44%). Management also proactively invested in inventory and reiterated margin and FCF targets. Key near-term challenges relate to inflationary component costs, inventory-driven cash timing, lower early-stage hardware margins (platform solutions/Dedrone) and execution risk for nascent businesses (Axon 911, Outpost). On balance, the highlights significantly outweigh the lowlights, driven by accelerating product adoption, geographic expansion and strong bookings.
Company Guidance
Management raised 2026 revenue guidance to +30%–32% growth and reiterated a full‑year adjusted EBITDA margin target of 25.5% (Q1 adjusted EBITDA margin ~25%), while expecting roughly $450M of free cash flow for the year and materially improved free‑cash‑flow conversion in H2; they also forecast full‑year stock‑based compensation of ~$590–$620M with average annual dilution targeted below 2.5%. Key operating metrics cited in support include Q1 revenue of $807M (+34% YoY), software & services $355M (+35%), connected devices $453M (+33%), AI product revenue >+700% YoY, ARR $1.5B (+35% YoY), net revenue retention 125%, future contracted bookings $14.3B (+44%), AI bookings +140% YoY and Dedrone bookings +500% YoY; guidance assumes continued tariffs/inflationary component costs (including memory), product‑mix shifts, and inventory investments with operating leverage expected in the back half of the year.
Software, ARR and Retention Strength
Software & services revenue of $355 million, up 35% year-over-year; ARR grew 35% to $1.5 billion; net revenue retention (NRR) of 125% in the quarter.
Explosive AI Momentum
AI product revenue grew more than 700% year-over-year (from a small base); AI bookings up 140% year-over-year; Axon Assistant surpassed 1 million uses and AI features (Axon Vision, Guardian, Assistant, Gravity) showing rapid customer adoption.
Dedrone / Counter-Drone Acceleration
Dedrone revenue up over 300% year-over-year and bookings up ~500% year-over-year; deployed at major events (2026 Super Bowl, Kentucky Derby, World Cup sites) and cited as a durable growth leg across markets.
Connected Devices & Core Hardware Strength
Connected devices revenue $453 million, up 33% year-over-year; TASER 10 and Body 4 remain durable drivers and Platform solutions grew 95% year-over-year.
Geographic and Market Diversification
International revenue increased over 100% year-over-year and represented ~20% of quarterly revenue; enterprise traction includes a $40 million telecom deployment centered on Fusus, Axon Body Mini and Outpost.
Strong Backlog and Future Bookings
Future contracted bookings rose 44% year-over-year to $14.3 billion; management reported record first-quarter bookings across U.S. public safety, international and enterprise.
Upgraded Guidance and Profitability Targets
Raised full-year revenue growth guidance to 30%–32%; reaffirmed full-year adjusted EBITDA margin target of ~25.5% (Q1 delivered ~25%); expect ~ $450 million free cash flow for 2026.
Acquisitions Delivering Early ROI
Acquisitions showing strong traction: management noted having booked over 1.5x the combined purchase price of Fusus and Dedrone since acquisitions (Fusus ~2 years ago, Dedrone ~18 months).
Proactive Supply and Inventory Strategy
Management is investing significantly in inventory to secure components and scale production for sustained demand (notably to mitigate memory/component constraints and geopolitical supply risk).
Erik Lapinski
Hello, everyone, and thank you for joining Axon's executive team today. Before we get started, I'll note that our remarks today are meant to build upon our most recent shareholder letter and investor materials, which you can find at investor.axon.com. During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our expectations as of today and are not guarantees of future performance. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially as discussed in our SEC filings. We will also discuss certain non-GAAP financial measures. Descriptions and reconciliations to GAAP are included in our shareholder letter and available on our investor website. Now as always, before we kick it over to Rick, we have a quick video to get us started.
Let's pull it up. [Presentation]
Patrick Smith
All right. Thank you, everyone, for joining us for our first quarter 2026 earnings call. I'm really pleased with how the year has started, and I'm even more excited about where we're going. I always say Axon Week is one of my favorite events of the year, and every year, it somehow gets better. What we shared with customers this April felt fundamentally different. It's no longer just about our new products. After decades of partnership. It's about how we've earned our customers' trust at a moment when it matters most.
I'm more convinced than ever that we're building something the world genuinely needs. I spend my time thinking about how we can make an impact, how we can do more, faster. Toda...
Subscribe to unlock transcripts
Get The Fly Pro 7 days for free