Highlights
- Axon reported Q4 2025 revenue of $797 million, a 39% year-over-year increase, per a Feb. 24 release.
- Q1 2026 revenue reached $807 million, up 34% year over year, with annual recurring revenue hitting $1.5 billion.
- AI products revenue grew over 700% year over year in Q1 2026; counter-drone revenue surged over 300%.
- Axon raised its full-year 2026 revenue growth outlook to 30% to 32%, up from prior guidance of 27% to 30%.
Axon Enterprise Inc. reported Q4 2025 revenue of $797 million, a 39% increase over the same period a year earlier, according to a Feb. 24 release from Axon's investor relations site.
The company followed that print with an even larger Q1 2026 result: $807 million in revenue, up 34% year over year, reported May 6. Software and services revenue grew 35% year over year to $355 million in the quarter. Annual recurring revenue reached $1.5 billion, also up 35% year over year.
The fastest-growing segments were newer product lines. AI products revenue increased over 700% year over year in Q1 2026, and counter-drone product revenue rose over 300% year over year, per the May 6 press release distributed via PR Newswire. Connected devices revenue increased 33% year over year to $453 million in Q1 2026.
On the strength of those results, Axon raised its full-year 2026 revenue growth outlook to 30% to 32% annual growth, up from prior guidance of 27% to 30%.
The Q1 filing also references investments in a new Scottsdale campus, noting that free cash flow figures exclude the net impact of those capital expenditures.
What is driving Axon's revenue acceleration?
The company's Q1 2026 disclosures point to AI products and counter-drone hardware as the highest-growth lines, with AI revenue up over 700% year over year and counter-drone revenue up over 300%. Software and services, which carry higher margins than hardware, grew 35% to $355 million and now account for a substantial share of the $1.5 billion annual recurring revenue base.
Axon's next scheduled earnings disclosure will reflect Q2 2026 results.
Sources
Every factual claim in this article traces to one of the sources below. See how we work for the editorial process.
- Google News retrieved 2026-05-08T05:41:58.137288+00:00
- investor.axon.com retrieved 2026-05-08T05:41:58.137288+00:00
- PR Newswire retrieved 2026-05-08T05:41:58.137288+00:00
Authored by presley_anand. Drafted by AI from primary-source material under our beat-specific editorial guides; reviewed by humans before publish under our five-gate process. Sources retrieved at 2026-05-08T05:41:58.137288+00:00. Every claim traces to a source.
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