Axon Enterprise, Inc. AXON is scheduled to release first-quarter 2026 results on May 6, after market close.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $780.6 million, which indicates an increase of 29.3% from the year-ago quarter’s figure. The consensus mark for earnings is pinned at $1.66 per share, which has been stable in the past 60 days. The estimate indicates growth of 17.7% from the figure reported in the year-ago quarter.
The company has surpassed the Zacks Consensus Estimate thrice and missed once in the preceding four quarters, the average surprise being 12.3%. In the last reported quarter, it reported earnings of $2.15 per share, which topped the consensus estimate by 28.7%.
Let’s see how things have shaped up for Axon Enterprise this earnings season.
Key Factors Likely to Have Shaped Q1 Performance
Solid demand for TASER 10 products and higher cartridge sales are expected to have boosted the performance of Axon Enterprise’s Connected Devices segment in the first quarter. Also, strong customer response for its next-generation body-worn camera, Axon Body 4, and solid demand for virtual reality training services are expected to have driven the segment’s performance.
Axon Enterprise’s strong presence in the counter-drone space, with the growing capabilities of its Dedrone offerings and Artificial Intelligence (AI)-powered command-and-control platform, is likely to have contributed to the segment’s growth. The Zacks Consensus Estimate for the Connected Devices segment’s revenues is pegged at $423 million.
The Software & Services segment is also expected to have put up an impressive show in the upcoming earnings, supported by the addition of new users and associated devices to the AXON network. Continued momentum in digital evidence management and increased demand for premium add-on features are also likely to have augmented the segmental top line. Increased adoption of premium subscription plans is also likely to have been favorable for the segment. The Zacks Consensus Estimate for the Software & Services segment’s net sales is pegged at $354 million.
AXON remains focused on acquisitions and strategic collaborations to expand its product offerings and customer base. For instance, in February 2026, the company acquired Carbyne, a well-known provider of cloud contact center technology solutions to public safety agencies. The acquisition integrated Carbyne’s advanced cloud-native 911 technology into the Axon ecosystem to create Axon 911, a state-of-the-art, fully integrated solution that will connect callers and responders instantly. The buyouts are expected to have boosted its top line in the quarter.
Despite the positives, escalating costs and operating expenses have been a concern. High costs related to business integration activities, increased wages and stock-based compensation are expected to have weighed on AXON’s bottom line in the to-be-reported quarter.
Axon Enterprise, Inc Price and EPS Surprise
Axon Enterprise, Inc price-eps-surprise | Axon Enterprise, Inc Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Axon Enterprise this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: AXON has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at $1.66 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: AXON currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.
RBC Bearings RBC has an Earnings ESP of +5.80% and a Zacks Rank of 2 at present. The company is slated to release first-quarter 2026 results on May 15.
RBC Bearings’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.3%.
Johnson Controls International JCI has an Earnings ESP of +0.17% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter fiscal 2026 results on May 6.
Johnson Controls’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.9%.
Kennametal Inc. KMT has an Earnings ESP of +5.88% and a Zacks Rank of 1 at present. The company is slated to release second-quarter 2026 results on May 6.
Kennametal’s earnings surpassed the Zacks Consensus Estimate thrice and missed once in the trailing four quarters, the average surprise being 35.4%.
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This article originally published on Zacks Investment Research (zacks.com).