Axon Q1 Beats Estimates, Shares Slip

Axon posted Q1 adjusted EPS $1.61 vs $1.60 estimate, revenue $807.35M up 34% YoY, beating consensus.
Gross margin fell 150 bps YoY to 59.1% due to global tariffs and higher costs from scaling Dedrone counter‑drone business.
Full‑year 2026 revenue growth outlook raised to 30‑32% (midpoint 31%) and adjusted EBITDA margin guidance kept at 25.5%.
Net income rose to $169M ($2.05 per diluted share) and recurring revenue hit $1.5B, with 125% net revenue retention.