AXON
Another quarter, another lap around the track
Axon basically showed up to earnings in running shoes again. The company said Q2 2026 revenue hit $904 million, up 35% from a year ago, which is the kind of growth that makes traditional industrial businesses look like they're walking in loafers.
The recurring-revenue machine is still humming
The real investor candy here is the underlying engine:
- Annual recurring revenue climbed 39% to $1.6 billion
- Net revenue retention hit 126%
- Software & Services revenue rose 36% to $398 million
- AI Era revenue nearly tripled... actually, it nearly septupled, growing close to 700%
- Platform Solutions revenue jumped 123% to $150 million
- Dedrone revenue crossed $100 million
That mix matters because it says Axon is no longer just a hardware story. The software, AI, and recurring revenue pieces are getting big enough to start steering the ship, not just decorating the deck.
Profits are showing up too
The company also reported net income of $29 million, with non-GAAP net income of $155 million and Adjusted EBITDA of $242 million. In other words: the growth isn’t just happening on a “trust us, it’ll be profitable someday” slide.
Why investors should care
Axon raised its full-year revenue growth outlook to 32%–34% while keeping its Adjusted EBITDA margin outlook at 25.5%. That’s the sweet spot investors like: faster growth, still disciplined margins, and a business that keeps finding new ways to monetize the platform.
Big picture: Axon is starting to look less like a niche public-safety vendor and more like a full-blown mission-critical software platform with hardware attached.