Axon Q2 2026: ten straight quarters above 30% — revenue $904M, AI up ~700%, guidance raised again

Figures trace to Axon's Q2 2026 shareholder letter, filed August 5, 2026 as Exhibit 99.1 to Form 8-K (accession 0001628280-26-053363), with Q1 baselines from the May 6 letter (accession 0001628280-26-031285). Research, not investment advice.

Our Monday preview left Axon ($AXON) one question to answer: does the streak of 30%-plus quarters — nine straight as of Q1's $807 million — survive a tenth print? It did, with room. Revenue of $904 million, up 35% year over year, which the letter itself calls "our 10th consecutive quarter of revenue growth above 30%." (Axon reported a day later than our preview expected — the filing came August 5.)

The subscription engine underneath is compounding faster than the headline: annual recurring revenue up 39% to $1.6 billion with net revenue retention at 126% — existing customers alone grew more than a quarter before a single new logo. Software & Services grew 36% to $398 million, and the letter's growth callouts stack up: AI Era revenue up nearly 700%, Platform Solutions up 123% to $150 million, and Dedrone — the counter-drone business — past $100 million in quarterly revenue. Connected Devices did $507 million, up 35%, on Dedrone, TASER 10 and Axon Body 4.

The line worth slowing down for is profitability. Net income was $29 million — a 3.3% net margin — against a 26.8% adjusted EBITDA margin and non-GAAP net income of $155 million. The bridge between those numbers is mostly stock-based compensation, and the letter itemizes it: $11 million in COGS, $71 million in SG&A, $62 million in R&D — roughly $144 million of stock comp in one quarter, about 16% of revenue. Cash improved but stayed thin: operating cash flow of $20 million (versus a $92 million outflow a year ago) and free cash flow of essentially zero, with $685 million of cash and short-term investments on hand.

Guidance went up for the second quarter running: full-year revenue growth now 32% to 34%, from the 30-32% range set in May, with the adjusted EBITDA margin held at about 25.5%.

So the preview's question is settled — the streak is real, ten quarters deep, and accelerating segments (AI, counter-drone) are taking over from the taser cycle as its engine. What the filing prices less clearly is the gap between the growth story and the GAAP margin — the valuation page has the multiples and the DCF pre-filled from the filings if you want to test what 30%-plus growth is worth when 16% of revenue is paid in stock.

Every figure above traces to accession 0001628280-26-053363 (sec.gov). Research, not investment advice.