Axon Posts Record Q2 2026 Revenue of $904 Million as Counter-Drone and AI Platforms Drive Growth

Axon Enterprise, Inc. (NASDAQ: AXON), a global provider of integrated public safety technology, reported second-quarter 2026 revenue of 904 million US dollars on August 5, 2026, an increase of 35 percent compared with the same period last year. The result marks the company's tenth consecutive quarter of revenue growth above 30 percent and was driven by continued demand across its connected hardware, cloud software and airspace security portfolios.

Growth was broad-based across both of Axon's reporting segments. Software and Services revenue rose 36 percent year over year to 398 million US dollars, reflecting expanding adoption of the company's premium software offerings, including its AI-enabled subscription plan. Connected Devices revenue increased 35 percent to 507 million US dollars, supported by continued uptake of the company's TASER 10 device, Axon Body 4 camera and its Dedrone airspace security platform.

Dedrone, the counter-drone and airspace security business Axon acquired in 2024, surpassed 100 million US dollars in quarterly revenue for the first time, with the wider platform solutions category growing 123 percent year over year. The technology formed a visible part of security operations at the 2026 FIFA World Cup, where Axon's integrated detection and command-and-control tools were deployed across all eleven U.S. host stadiums and more than fifty additional sites, including team facilities and fan zones. The deployment centred on Dedrone C2, a unified platform designed to bring radar, radio-frequency and camera-based drone detection into a single operational picture for public safety agencies coordinating airspace security across multiple venues and jurisdictions.

Company leadership pointed to the counter-drone market as still in an early stage of adoption relative to its long-term global potential, framing the World Cup deployment as an indicator of how airspace awareness is becoming a standard component of large-event security planning. Axon's AI-enabled software revenue grew by close to 700 percent in the quarter, underscoring accelerating customer adoption of artificial intelligence tools across the company's public safety ecosystem, which links sensors, devices and case-management software from initial dispatch through case closure.

On profitability, Axon reported net income of 29 million US dollars, non-GAAP net income of 155 million US dollars, and adjusted EBITDA of 242 million US dollars, representing an adjusted EBITDA margin of 26.8 percent for the quarter. Annual recurring revenue climbed 39 percent to 1.6 billion US dollars, net revenue retention reached 126 percent, and future contracted bookings rose 41 percent to 15.1 billion US dollars.

Reflecting the quarter's performance, Axon raised its full-year 2026 revenue growth outlook to a range of 32 to 34 percent, up from its previous guidance of 30 to 32 percent, while maintaining its adjusted EBITDA margin target of 25.5 percent for the year.

Axon is headquartered in Scottsdale, Arizona, and describes its mission as building an integrated operating system for public safety, combining connected devices, cloud software and data analytics used by law enforcement, emergency response and enterprise security customers worldwide.