Overview

• US public safety tech firm's Q1 revenue rose 34% yr/yr, beating analyst expectations

• Adjusted EPS and net income increased yr/yr, driven by higher operating income

• Company raised 2026 revenue growth outlook to 30%-32% from 27%-30%

Outlook

• Axon raises full-year 2026 revenue growth outlook to 30%-32%, up from 27%-30%

• Company maintains full-year 2026 Adjusted EBITDA margin guidance at 25.5%

• Axon expects 2026 capital expenditures of $160 mln to $190 mln

Result Drivers

• SOFTWARE & SERVICES GROWTH - Co said 35% yr/yr revenue growth in Software & Services was driven by new users and increased adoption of premium software offerings

• AI AND COUNTER-DRONE DEMAND - AI products revenue rose over 700% and counter-drone product revenue increased over 300% yr/yr, reflecting strong customer adoption

• GROSS MARGIN PRESSURE - Gross margin declined yr/yr due to global tariffs and increased professional services costs related to product deployments, especially Dedrone

Company press release: ID:nPn7R50RZa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$807 mln	$778.45 mln (15 Analysts)
Q1 EPS		$2.05
Q1 Net Income		$169 mln
Q1 Adjusted EBITDA		$202 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Axon Enterprise Inc is $686.00, about 80.2% above its May 5 closing price of $380.60

• The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 64 three months ago

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