Axon beats Q1 earnings and revenue estimates but shares fall 2.8% in after-hours trading

Axon Enterprise reported Q1 earnings of $1.61 per share, slightly above the $1.60 estimate, and revenue of $807.35 million, beating the $778.45 million forecast. Key growth drivers included a 35% rise in Software & Services revenue, over 700% growth in AI products, and a 300% increase in counter-drone product sales. Axon raised its full-year 2026 revenue outlook to $3.61-$3.67 billion, above prior estimates. Despite strong results and outlook, Axon shares fell 2.81% to $375 in after-hours trading, possibly due to profit-taking or market expectations.