Axon Enterprise Reports 35% Revenue Growth in Second Quarter

Axon Enterprise reported second-quarter 2026 revenue of $904.3 million, representing a 35% year-over-year increase. The company exceeded analyst expectations with a 36% growth in software and services revenue, a 35% increase in connected devices revenue, and a 123% surge in platform solutions. Following these results, Axon raised its full-year revenue growth guidance to a range of 32% to 34%.

Despite the strong financial performance, shares fell 6.52% in after-hours trading. Investors expressed concern over a premium valuation of 244 times earnings and expected margin pressure in the third quarter, driven by increased memory costs and the absence of a second-quarter tariff refund.

The company continues its transition from a TASER manufacturer to a public safety operating system, currently serving more than 17,000 agencies across 85 countries. Axon has established a 2028 financial target of $6 billion in annual revenue and a 28% Adjusted EBITDA margin.