Summary
Axon Enterprise, Inc. reported strong revenue growth of 33.7% to $807.3 million for the first quarter of 2026 compared to the prior year period. This top-line expansion was driven by robust performance across both its Connected Devices segment (up 32.8%) and Software and Services segment (up 34.9%). The company successfully transitioned from an operating loss in the prior year's quarter to an operating income of $29.2 million. Net income also saw a significant increase, rising to $169.3 million from $88.0 million in the same quarter last year, with diluted EPS growing to $2.05 from $1.08. The company made a substantial strategic acquisition of Carbyne Ltd. for $549.7 million, funded by existing cash and investments, which contributed to a significant decrease in cash and cash equivalents. While gross margins saw a slight compression due to tariffs and a higher mix of Platform Solutions revenue, the overall financial performance demonstrates continued strong execution and market demand for Axon's integrated technology solutions.
Financial Highlights
53 data points| Revenue | $807.35M |
| Cost of Revenue | $330.06M |
| Gross Profit | $477.29M |
| R&D Expenses | $188.95M |
| SG&A Expenses | $259.09M |
| Operating Expenses | $448.04M |
| Operating Income | $29.24M |
| Net Income | $169.31M |
| EPS (Basic) | $2.11 |
| EPS (Diluted) | $2.05 |
| Shares Outstanding (Basic) | 80.15M |
| Shares Outstanding (Diluted) | 82.48M |
Key Highlights
- 1Net sales increased by 33.7% to $807.3 million for the three months ended March 31, 2026, compared to $603.6 million for the three months ended March 31, 2025.
- 2Income from operations turned positive at $29.2 million for the current quarter, compared to a loss of $8.8 million in the prior year period.
- 3Net income more than doubled to $169.3 million from $88.0 million year-over-year.
- 4Diluted earnings per common share increased to $2.05 from $1.08.
- 5The company completed the acquisition of Carbyne Ltd. for approximately $549.7 million.
- 6Total current assets decreased significantly, primarily due to a reduction in cash and cash equivalents and short-term investments, influenced by the Carbyne acquisition and investment activities.
- 7Gross margin as a percentage of net sales slightly decreased to 59.1% from 60.6%, attributed to global tariffs and a higher mix of Platform Solutions revenue.