Axon delivered another record quarter with revenue up 35% YoY, raised full-year guidance, and emphasized strength across international, federal, and enterprise markets, alongside significant growth in its Dedrone counter-drone and AI software businesses. Reported Q2 FY2026 revenue of $904M (+35% YoY), with software/services revenue up 36% and platform solutions (incl. Dedrone) up 123%.
Axon delivered another record quarter with revenue up 35% YoY, raised full-year guidance, and emphasized strength across international, federal, and enterprise markets, alongside significant growth in its Dedrone counter-drone and AI software businesses. Reported Q2 FY2026 revenue of $904M (+35% YoY), with software/services revenue up 36% and platform solutions (incl. Dedrone) up 123%.
Management emphasized that AI is transforming their public safety ecosystem, enabling real-time intelligence and automation, with the AI era plan growing ~700% year-over-year. They see AI as a tool to amplify human ability, not replace judgment, and are integrating it into…
Bookings grew 20% on top of 50% last year, with normalized bookings up 30% and expected to stay in that range for the year. International, Enterprise, and Dedrone are scaling rapidly, with strong pipeline and large deals, including two nine-figure contracts and major…
Bookings grew 20% on top of 50% last year, with normalized bookings up 30% and expected to stay in that range for the year. International, Enterprise, and Dedrone are scaling rapidly, with strong pipeline and large deals, including two nine-figure contracts and major…
Bookings grew 20% on top of 50% last year, with normalized bookings up 30% and expected to stay in that range for the year. International, Enterprise, and Dedrone are scaling rapidly, with strong pipeline and large deals, including two nine-figure contracts and major…
Management emphasized that AI is transforming their public safety ecosystem, enabling real-time intelligence and automation, with the AI era plan growing ~700% year-over-year. They see AI as a tool to amplify human ability, not replace judgment, and are integrating it into products like Axon Assistant and real-time translation.
Bookings grew 20% on top of 50% last year, with normalized bookings up 30% and expected to stay in that range for the year. International, Enterprise, and Dedrone are scaling rapidly, with strong pipeline and large deals, including two nine-figure contracts and major international wins.
Management discussed significant inventory investments to support customer demand and reduce supply chain risk, with free cash flow outflow of $1 million. They are investing aggressively in Dedrone and new product lines, absorbing mix impacts from rapid scaling.
Management expressed strong confidence in growth, citing record results, expanding pipelines, and broad-based demand across all markets.
Memory cost pressure could compress margins in the near term before scaling back in Q4.
“We expect Q3 adjusted EBITDA margin to reflect the impact of those memory costs”
Rapid growth in new segments like Dedrone and software may pressure gross margins until scale benefits are realized.
“but as we scale this and other new businesses rapidly, we are absorbing the mix impact.”
“on a five-year normalized basis, which adjusts for contract duration, bookings were up even more, over 30%.”
“We expect body camera shipments to be up 20 to 30 percent sequentially in Q3 and 15 to 20 percent quarter over quarter.”
“just yesterday, we were named one of the participants in the $1.5 billion DHS program for Counter UAS.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Revenue | FY2026 | 32%–34% | 33% | RAISED |
Axon frames OpenAI's breakthrough as evidence of an 'intelligence explosion' that increases the value of AI connected to real-world physical action, which is Axon's niche.
“Two days ago, OpenAI announced an unreleased model had solved 10 open problems in mathematics, problems that the best mathematicians alive have been stuck on for decades...”
Axon secured a $1.5 billion DHS counter-UAS contract as one of a handful of selectees, which legitimizes the Dedrone offering and enables future federal, state/local and international deals. — This win provides a clear, large federal growth vector for the counter-drone business, though the addressable share remains unclear.
… to grow. and last but not least, I'm excited to see our federal business showing a lot of promise. We are engaged in opportunities across the federal civilian space and the team is executing with intensity as we approach the end of the fiscal year. Federal was part of the story with D-Drone in the World Cup and we also closed a major deployment of Axon Assistant with a federal agency on our body cameras because they are using them as body cameras. And just yesterday, we were named one of the participants in the $1.5 billion DHS program for Counter UAS. I am looking forward to talking more and more about our progress in the federal space. As far as bookings go, every indicator I'm watching looks as good as it ever has. Q2 gross bookings were up 20%. That's on top of nearly 50% bookings growth in Q2 last year. On a five-year normalized basis, which adjusts for contract duration, bookings were up even more, over 30%. That matters because some of our newer markets, like International and Enterprise, sign deals in the one-to-five-year range compared to some of the 10-year agreements we sometimes sign with state and local customers. Normalizing for duration gives us a clearer view …