Key Highlights

  • Axon Enterprise (NASDAQ:AXON) will release third quarter 2026 results after the close on Thursday, November 5, 2026, with a webinar at 5:00 p.m. ET, after a second quarter of USD 904 million in revenue.
  • Second quarter Revenue rose 35 percent, the tenth consecutive quarter above 30 percent growth, led by Software and Services at USD 398 million and Connected Devices at USD 507 million.
  • The company raised 2026 revenue growth guidance to 32 to 34 percent from 30 to 32 percent, while keeping its adjusted EBITDA Margin outlook at about 25.5 percent.
  • Annual Recurring Revenue reached USD 1.6 billion, up 39 percent, and future contracted bookings were USD 15.1 billion, up 41 percent, giving unusual visibility for a hardware business.

The Second Quarter Baseline

On August 5, 2026, Axon Enterprise (NASDAQ:AXON) reported revenue of USD 904 million, up 35 percent. Platform Solutions revenue was USD 150 million, up 123 percent, and Dedrone revenue passed USD 100 million. TASER revenue was USD 261 million, up about 21 percent from USD 216 million. Adjusted EBITDA was USD 242 million, a 26.8 percent margin, though the company noted that global Tariff refunds contributed to the increase. GAAP Net Income was USD 29 million, or USD 0.36 a share, and non-GAAP net income was USD 155 million, or USD 1.88 a share. Both declined year over year because the prior period included a large tax benefit.

How the Recurring Model Works

Customers buy body cameras, TASER devices and drones, then subscribe to cloud software for evidence storage, records and real-time awareness on multi-year contracts. That is why bookings of USD 15.1 billion matter: they convert into revenue over time, and the company said it expects to fulfill a portion each year. Net revenue retention was 126 percent, meaning existing customers expanded their spending. The company did not give third quarter guidance, but the 32 to 34 percent full-year range applied to roughly USD 2.8 billion of 2025 revenue implies about USD 3.7 billion to USD 3.75 billion for 2026, our approximate arithmetic. Growth in the Software and Services line, which carries software gross margin above 80 percent, is what lifts profitability over time.

Risks and What to Watch

Free Cash Flow was roughly negative USD 1 million in the second quarter, so cash conversion lags earnings. Tariff refunds flattered adjusted EBITDA, which makes the underlying margin harder to read. Government budgets, procurement timing and competition in body cameras and drones are further risks, and growth above 30 percent for ten quarters raises the bar for an eleventh. Investors will watch whether revenue growth holds near 35 percent, whether the full-year raise is repeated and what drives third quarter margins. None of these figures is a forecast, and results may differ from the outlook. Management also lowered its 2026 Capital Expenditure range to USD 160 million to USD 190 million, which could modestly help cash flow.

Where Things Stand

The company is Axon Enterprise (NASDAQ:AXON), and the answer to the headline question is that its streak is real but increasingly hard to extend. Ten straight quarters above 30 percent growth, a USD 15.1 billion booking Backlog and a raised outlook support the case, while thin free cash flow and tariff refund help to margins argue for care. The next catalyst is the November 5 release and 5:00 p.m. ET webinar, where the third quarter growth rate, the full-year range and cash flow will show whether momentum continues.