We made the decision over a decade ago to invest in tightly integrated solutions across hardware and software, creating an ecosystem that allows customers to scale and grow as fast as technology is moving. Our hardware enables software features that wouldn't be possible without capable, connected sensors at the edge. Fusus, Dedrone, Axon 911, license plate readers, vehicle intelligence are being deployed across entire cities and countries. We quickly learn what customers are excited about, what's gaining traction, and ultimately, where our pipeline goes from here.
Q1 was our strongest ever first quarter across revenue, bookings, and new products. The core is off to a great start with sustained TASER growth rates. It tells us that the growth we are seeing is not isolated to one product, one geography, or one customer segment. Across the business, we are tracking indicators like customer engagement, pipeline quality, adoption of new products, and continued strength in the core.
The Axon AI Era Plan is not the only thing driving explosive growth. Now Dedrone has established itself as a further accelerant to our growth. Finally, it is no secret that physical AI infrastructure is going to be a source of record spending in the years to come. The deployment centers around Fusus, which continues to garner interest and drive growth in this segment, along with Axon Body Mini and Axon Outpost.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue growth | FY2026 | 30%-32% (raised) |
| Adjusted EBITDA margin | FY2026 | 25.5% (reaffirmed) |
| Free cash flow | FY2026 | approximately $450 million |
| Stock-based compensation expense | FY2026 | approximately $590 million-$620 million |
| Average annual dilution | ongoing | less than 2.5% |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +34% | Broad-based strength across all products, markets, and customer segments, with each segment setting first-quarter bookings records. |
| Software and services revenue | +35% | Continued growth across all software products, with AI a standout driver on top of consistent software expansion. |
| AI product revenue | +700%+ | Delivering on strong prior-year bookings off a small revenue base, aided by new features launched at Axon Week. |
| Connected devices revenue | +33% (to $453M) | TASER 10 and Axon Body 4 remained durable drivers and platform solutions grew 95% on counter-drone hardware. |
| Dedrone revenue (hardware and software) | +300%+ | Rising demand for counter-drone capability across multiple markets and large-scale event deployments. |
| International revenue | +100%+ | Delivery on prior-year bookings momentum, a stronger global go-to-market operation, and Dedrone-led expansion. |
| Future contracted bookings | +44% (to $14.3B) | Broad-based momentum across products, end markets, and customer engagement. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AI ERA Plan adoption | $750 million booked since late-2024 launch | AI bookings up 140%, nearly all large domestic agencies now including AI | Rising |
| Dedrone / counter-drone | acquired ~18 months ago | bookings up 500%, deployed at Super Bowl and Kentucky Derby, limited mainly by ability to scale supply | Rising |
| Enterprise expansion | — | Q1 enterprise up 50%+, $40M telecom Fusus deal closed in April, Axon Vision and Draft One becoming enterprise-ready | Rising |
| International growth | first year over $1 billion in bookings last year | revenue up 100%+, 20% of total, smaller nations going all-in on a national basis | Rising |
| Inventory investment | — | significant sponsored investment in core product inventory to de-risk supply, contemplated in FCF guidance | Rising |
| Axon 911 (Carbyne and Prepared) | — | still early innings, signed some of the largest US jurisdictions on Prepared, targeting market leadership | Rising |