Axon Enterprise
Operating system for public safety. Q2 2026 (reported 2026-08-05): revenue $904M (+35% YoY, tenth consecutive quarter above 30% growth), ARR $1.6B (+39% YoY), net revenue retention 126%. AI Era Plan software revenue grew roughly 700% YoY - the same pace as Q1, not a fresh acceleration. FY2026 growth guidance raised to 32-34%. Draft One report-writing and Axon Assistant real-time translation drive international and enterprise bookings, up about 3x YoY.
Scenarios
Land-and-expand moat is exceptional — body cameras lead to Cloud, then AI, then Draft One. AI Era Plan reaching saturation at the top end of the agency market means TAM expansion is now international and federal, not domestic.
Civil liberties concerns could generate regulatory backlash in Europe. Still hardware-dependent (Tasers, cameras) — supply chain issues create churn risk.
Key Factors to Watch
- ●Q1 2026 BEAT — revenue $807M (+34%), bookings $14.3B (+44%), FY26 guide raised to 30-32%
- ●AI revenue +700% YoY; AI Era Plan bookings +140% YoY
- ●"Nearly all large US law enforcement agencies" now include AI in purchases — top-end TAM saturation
- ●NRR 125%, ARR $1.5B (+35%) — best-in-class SaaS retention
Score History
| Date | Score | Direction | Note |
|---|---|---|---|
| 2026-05-09 | 8.5 | Very Positive | W19 Q1 2026 BEAT — are 9→10 (AI revenue +700% YoY, AI Era Plan bookings +140%), aam 8→9 ("nearly all large US agencies" saturation) |
| 2026-03-08 | 8.2 | Very Positive | Blind spot review: disruption_risk 1→3 (EU regulation risk), moat_durability 9→8 (competitive bids at renewal) |
| 2026-03-08 | 8.8 | Very Positive | Initial assessment from batch 8 research |
Software Peers
Last researched: 2026-08-29
This is research and analysis, not financial advice. Scores reflect AI impact potential, not investment recommendations.