AXON earnings analysis
What we found in AXON's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Axon reported a strong Q1 2026 performance, with revenue of $807.3 million, a 33.7% increase year-over-year, and EPS of $1.61, exceeding estimates by 25.8%. The company attributed its success to robust growth in both product and service segments, though it faced margin pressure due to increased operating expenses and changing revenue mix.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Revenue increased by $203.7 million, or 33.7%, to $807.3 million compared to $603.6 million in Q1 2025.
- EPS Exceeds Expectations
- Reported EPS was $1.61, beating consensus estimates of $1.28 by approximately 25.8%.
- Significant Growth in Segments
- Connected Devices revenue increased 32.8% to $452.8 million, while Software and Services rose by 34.9% to $354.5 million.
- Improved Income from Operations
- Income from operations turned positive at $29.2 million, compared to a loss of $8.8 million in Q1 2025.
- Healthy Net Income
- Net income reached $169.3 million, up from $88.0 million year-over-year.
- Robust Cash Flow Despite Outflows
- Operating cash flow saw a net outflow of $31.5 million, compared to positive flow of $25.8 million a year ago.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Decline in Gross Margin
- Gross margin decreased to 59.1% from 60.6% year-over-year, driven by higher operational costs and tariffs.
- Increased Operating Expenses
- Total operating expenses rose by $73.5 million, impacting overall profitability despite revenue growth.
- Cash Position Reduction
- Cash and cash equivalents decreased by $742.2 million from $1.2 billion at year-end, potentially impacting liquidity.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.61
- Gross margin
- 59.1%
- Operating margin
- 3.6%
- Segment
- Connected Devices
- Segment
- Software and Services
What they said about what is next.
No explicit numeric guidance in the 10-Q; management anticipates continued growth.
The filing reads better than the one before it.
What came before.
- 10-K · February 25, 2026
- Axon’s 2025 filing emphasizes a strategic shift to a software-first model by realigning reporting into Software and Services and Connected Devices and highlights $1.3 billion of annual recurring revenue as of December…
- 10-Q · November 5, 2025
- Axon reported Q3 net sales of $710,641,000 (up $166,367,000 or +30.6% YoY) but recorded a GAAP net loss of $2,186,000 (diluted EPS $(0.03)) after a $17,889,000 tax provision. Gross margin was largely stable at 60.1%…
- 10-K · February 28, 2025
- Axon positions itself as a vertically integrated public-safety platform combining cloud software, sensors and TASER devices and reports $1.0 billion of annual recurring revenue as of December 31, 2024. The business…
- 10-Q · November 8, 2024
- Axon reported Q3 net sales of $544,274,000, up $130,996,000 (31.7%) versus Q3 2023, driven by both product and service revenue. Gross margin rose to $330,747,000 but operating income fell to $24,081,000 from $57,419,000…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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