Axon Enterprise's Software & Services segment revenue rose 36.2% to $398 million in the second quarter of 2026, following a 35% year-over-year jump in the first quarter. Growth was driven by new users and increased adoption of premium offerings including Axon Fusus, the AI Era Plan and Axon 911, while existing customers returned for additional services, supporting annual recurring revenue. Segment gross margin fell 430 basis points to 71.3% and adjusted gross margin fell 380 basis points to 75.1%, reflecting a greater mix of professional services and new products, though software-only gross margin stayed above 80%. Axon raised its full-year 2026 total revenue growth guidance to approximately 32-34% from 30-32% previously. Shares have gained 37% over the past six months, and the stock trades at a forward price-to-earnings ratio of 63.76 times, above the industry average of 42.03 times.
Axon Enterprise Inc.Software & Services revenue jumped 36.2% on new users and premium adoption, and full-year guidance was raised.
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