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AXON US S&P 500NASDAQ-100Russell 1000 Earnings call

Axon Enterprise (AXON) · Q2 2026 results and valuation

Share price: $315.42 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter

Net income down 82.6% on the previous quarter, guidance raised. Tone in line with last period.

Only a basic analysis is available for this company at the moment.

1 · Numbers

−82.6%

Net income vs Q1 2026

Guidance raised

Net income 29.4M vs 169.3M

Revenue +12.0%

Against the same quarter last year (Q2 2025) it is −18.5% — part of the move on last quarter is seasonal.

2 · How management spoke

Unchanged

Language tone vs last period

Language: cautious — about as upbeat as in Q1 2026.

3 · What stood out

Figure

Axon's drone response time of 53 seconds now covers 96% of city burglaries, which dropped 45%, suggesting faster emergency response may be reducing…

Valuation

Is Axon Enterprise undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 20.0% growth a year (3-year revenue growth), the model's fair value is $32.51 a share — the stock trades 870% above it. Today's price assumes 48.8% growth a year.

Current price

$315.42

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+48.8% for 10 yrs

Fair value / share

$32.51

Buy below

$24.38

Price vs fair value

Overvalued >200%

Price vs buy-below price

Overvalued >200%

Management expects

Revenue +33% · from the Q2 2026 report: “AXON raised full-year revenue growth guidance to 32%-34%, up 200 basis points.”

A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Key theme

    AI Era Plan adoption continues, supporting another year of 30%-plus revenue growth and 140% higher AI bookings.

    Source quote
    “We expect body camera shipments to be up 20%-30% sequentially in Q3 and 15%-20% quarter-over-quarter. Lastly, in the U.S., we continue to see more and more customers who bet on other vendors coming to Axon for body camera pain relief. The success across markets led to our TASER volume being the highest in a quarter to date.”
  2. Guidance ↑

    Expectations were raised despite supply chain disruptions, higher component costs, and tariffs, reflecting discipline.

    Source quote
    “I believe that discipline is a big part of why we've continued to raise our own expectations while navigating supply chain disruptions, higher component costs, and tariffs, all while scaling...”
  3. Guidance ↑

    AXON raised full-year revenue growth guidance to 32%-34%, up 200 basis points.

    Source quote
    “We're raising our full-year revenue guidance to a range of 32%-34%, 200 basis points above our prior range of 30%-32%.”
  4. Fading

    A major driver of that momentum is the continued adoption of the AI Era Plan.

    Source quote
    “A major driver of that momentum is the continued adoption of the AI Era Plan. And those indicators support another year of 30-plus percent revenue growth. AI bookings were up 140% versus Q1 last year and we are seeing AI move from early interest to a standard part of how large agencies think about their future technology stack.”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Overall language Cautious (was cautious)

Cautious — about as upbeat as in Q1 2026.

Sentences that drove the tone
“Dedrone is delivering tremendous growth, the opportunity continues to expand across state and local public safety, international, federal, enterprise, and corrections.”
“We view our footprint with Dedrone is to be the best connector, meaning that we partner with the best in class across a variety of different vendors, that we create...”
“Based on the strong demand pipeline and results in the first half, we expect seasonality similar to last year, where Q4 is our strongest quarter, both in terms of revenue...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric Q2 2026period end 2026-06-30 Q1 2026period end 2026-03-31 Change Q2 2025 YoY
Revenue 904.4M 807.3M +12.0% 668.5M +35.3%
Gross profit 546.4M 477.3M +14.5% 403.7M +35.3%
Operating income 46.8M 29.2M +60.0% -1.0M Turned profit
Net income 29.4M 169.3M −82.6% 36.1M −18.5%
EPS 0.36 2.05 −82.4% 0.44 −18.2%
P/E today 171.6 233.6 171.2 +62.4 203.9 +29.7

Topics

Most discussed now

  • New Since they ran out of interceptors, the threat of Russian ballistic missiles is much greater.
  • Future contracted bookings grew more than 40% year-over-year to $15.1 billion, reflecting the broad-based momentum Axon Enterprise is…
  • Together, that part of Axon Enterprise's software business grew roughly 70% year-over-year with the AI Era Plan a true standout, growing...
  • Increasingly, Axon Enterprise's newer software offerings are also meaningful contributors.
  • The demand remains broad-based software and services revenue increased 36% year-over-year to $398 million.

Faded since Q1 2026

  • Fading As Axon Enterprise scales the business, it is also focusing on its free cash flow conversion from adjusted EBITDA.
  • Fading Axon Enterprise has 1 of its 2 semiannual interest payments in Q1 and even with all of that, without the inventory...
  • Fading Feeling really good about what 911 is going to look like for the year to come.
  • Fading Axon Enterprise made the decision over a decade ago to invest in tightly integrated solutions across hardware and software, creating an...

Latest announcements

Official filings, newest first.

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