Axon Enterprise (NASDAQ:AXON) Releases Earnings Results

Key Points

• Axon reported Q1 EPS of $1.61 and revenue of $807M, topping estimates with ~34% YoY revenue growth, and management raised FY2026 revenue guidance to 30%–32% while maintaining a ~25.5% adjusted EBITDA margin target.
• AI and drone products are driving acceleration—bookings rose ~140% YoY, AI product revenue jumped >700% YoY (small base) with Axon Assistant exceeding 1M uses, and Dedrone bookings and revenue surged ~500% and >300% YoY, respectively.
• The company made a sizable inventory investment that weighed on Q1 free cash flow, though management still expects about $450 million of free cash flow for 2026; shares face pressure amid rich valuation (P/E ~254) and recent insider selling.

Axon Enterprise (NASDAQ:AXON - Get Free Report) posted its quarterly earnings results on Wednesday. The biotechnology company reported $1.61 earnings per share for the quarter, topping analysts' consensus estimates of $1.60 by $0.01, FiscalAI reports. The business had revenue of $807.35 million during the quarter, compared to analyst estimates of $778.91 million. Axon Enterprise had a net margin of 4.48% and a return on equity of 2.82%. The company's revenue was up 33.7% on a year-over-year basis. During the same period in the prior year, the business posted $1.47 earnings per share.

Here are the key takeaways from Axon Enterprise's conference call:

• Q1 revenue of $807 million was up 34% YoY (ninth consecutive quarter >30% growth); management raised 2026 revenue guidance to 30%–32% growth and maintained a 25.5% adjusted EBITDA margin target.
• Management says the Axon AI Era Plan is accelerating adoption—bookings were up 140% YoY, AI product revenue grew >700% YoY (small base), and Axon Assistant exceeded 1 million uses, indicating strong cross-sell and product pull-through.
• Dedrone is scaling rapidly with bookings up 500% YoY and revenue >300% YoY, deployed at major events and cited as a durable new growth leg across public safety, enterprise and international markets.
• The company is making a significant inventory investment (including memory components) to avoid supply constraints, which weighed on Q1 free cash flow; management still expects approximately $450 million of free cash flow for 2026 and improving conversion later in the year.
• International and enterprise momentum continued—international revenue was up >100% YoY (20% of Q1 revenue), the enterprise team closed a $40 million telco Fusus deal, and combined recent acquisitions (Fusus, Dedrone) have already booked >1.5x their purchase price, supporting the company’s land-and-expand strategy.

Axon Enterprise Price Performance

Axon Enterprise stock traded up $5.26 during mid-day trading on Wednesday, reaching $385.86. 2,233,258 shares of the company's stock traded hands, compared to its average volume of 1,043,973. The company has a market cap of $31.09 billion, a price-to-earnings ratio of 253.86, a PEG ratio of 8.40 and a beta of 1.44. The stock has a 50 day moving average of $452.99 and a two-hundred day moving average of $531.11. The company has a quick ratio of 2.29, a current ratio of 2.53 and a debt-to-equity ratio of 0.53. Axon Enterprise has a 12-month low of $339.01 and a 12-month high of $885.91.

Insiders Place Their Bets

In other news, insider Isaiah Fields sold 2,000 shares of the stock in a transaction on Friday, February 27th. The shares were sold at an average price of $535.01, for a total value of $1,070,020.00. Following the sale, the insider owned 55,588 shares of the company's stock, valued at approximately $29,740,135.88. This represents a 3.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Jeri Williams sold 157 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $490.00, for a total transaction of $76,930.00. Following the completion of the sale, the director directly owned 1,159 shares in the company, valued at approximately $567,910. This represents a 11.93% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 13,855 shares of company stock valued at $7,109,828. 5.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Axon Enterprise

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Brighton Jones LLC bought a new position in shares of Axon Enterprise in the fourth quarter worth about $480,000. NewEdge Advisors LLC boosted its holdings in shares of Axon Enterprise by 41.1% in the first quarter. NewEdge Advisors LLC now owns 2,294 shares of the biotechnology company's stock valued at $1,207,000 after purchasing an additional 668 shares during the period. Empowered Funds LLC raised its position in shares of Axon Enterprise by 8.4% in the 1st quarter. Empowered Funds LLC now owns 2,028 shares of the biotechnology company's stock valued at $1,067,000 after purchasing an additional 157 shares during the last quarter. Woodline Partners LP raised its position in shares of Axon Enterprise by 40.6% in the 1st quarter. Woodline Partners LP now owns 6,932 shares of the biotechnology company's stock valued at $3,646,000 after purchasing an additional 2,003 shares during the last quarter. Finally, Sivia Capital Partners LLC purchased a new position in shares of Axon Enterprise in the 2nd quarter valued at approximately $284,000. Hedge funds and other institutional investors own 79.08% of the company's stock.

More Axon Enterprise News

Here are the key news stories impacting Axon Enterprise this week:

• Positive Sentiment: Raised full‑year revenue-growth outlook and reiterated margin target — Axon raised its FY2026 revenue-growth guidance to roughly 30%–32% and kept a ~25.5% adjusted EBITDA margin target, citing stronger software and device demand. Reuters: Axon raises annual revenue growth forecast
• Positive Sentiment: Revenue and product-line strength — Q1 revenue came in at $807M (+34% YoY), topping Street sales estimates; Software & Services grew ~35%, AI product revenue surged (reported >700% YoY) and counter‑drone revenue rose >300% — supporting high-growth narrative and cash‑flow guidance. PR Newswire: Axon reports Q1 2026 revenue
• Positive Sentiment: Product demand driven by AI and drones — Management and analysts highlighted AI-enabled products and drone/counter‑drone demand as notable growth drivers that are expanding higher‑margin software/service revenue. Seeking Alpha: Axon tops Q1 estimates
• Neutral Sentiment: Mixed EPS read — Axon reported EPS of $1.61. Some outlets frame this as a small beat vs. $1.60, while others note it missed a $1.66 Zacks estimate, creating ambiguity around the earnings headline despite a clear revenue beat. MarketBeat: AXON earnings summary Zacks: Q1 earnings lag estimates
• Negative Sentiment: Shares have faced recent downward pressure and valuation concerns — AXON has underperformed YTD and investors remain sensitive to rich multiples after a significant prior run; that backdrop limits upside despite good results. Yahoo Finance: Assessing Axon valuation
• Negative Sentiment: Stock trimmed gains intraday in some coverage — several outlets noted shares slipped despite the quarter, reflecting investor focus on EPS nuance, valuation and whether growth can sustain high margins long term. Benzinga: Axon shares slip despite Q1 results

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Citizens Jmp reiterated a "market outperform" rating and issued a $825.00 price target on shares of Axon Enterprise in a research report on Monday, April 13th. William Blair reiterated an "outperform" rating on shares of Axon Enterprise in a research report on Tuesday, February 3rd. Royal Bank Of Canada dropped their target price on shares of Axon Enterprise from $860.00 to $735.00 and set an "outperform" rating for the company in a research report on Wednesday, February 25th. Citigroup restated a "buy" rating on shares of Axon Enterprise in a research report on Wednesday, February 25th. Finally, UBS Group dropped their target price on shares of Axon Enterprise from $610.00 to $570.00 and set a "neutral" rating for the company in a research report on Wednesday, February 25th. Sixteen equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Axon Enterprise currently has an average rating of "Moderate Buy" and a consensus price target of $749.63.

About Axon Enterprise

Axon Enterprise, Inc develops technology and weapons systems for public safety and law enforcement agencies, combining hardware, software and cloud services. The company's hardware portfolio includes conducted energy weapons (commonly known as TASER devices), body-worn cameras and in-car camera systems. Axon pairs these devices with a suite of connected products and accessories designed to capture, store and manage field evidence.

Beyond hardware, Axon operates a subscription-based software platform for digital evidence management, evidence review and records management.

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