-- Axon Enterprise (AXON) could beat Q1 estimates and raise the lower end of its fiscal 2026 revenue guidance as new products, wider use of its platform, AI add-ons, and faster drone deployments support growth, RBC Capital Markets said in a note Tuesday.
Axon's connected system should become stronger through fiscal 2026 as ABW Mini launches and drone-as-first-responder deployments send more real-time data into its Fusus and intelligence platforms. Its AI Era Plan conversions are expected to grow faster, helped by bundled products, customer upgrades, international expansion, and more federal and enterprise demand, RBC said.
Bookings may be seasonally softer in Q1, but growth should pick up later in fiscal 2026 as deal sizes rise and new products gain more traction, while international growth will slow down in 2026 because of long European sales cycles, but stronger gains are expected in 2027 and 2028 as cloud deployments expand and AI tools drive more platform use, according to the note.
The investment firm said Axon's mix of hardware, software, and data gives it a stronger position against lower-cost software rivals and supports wider customer adoption.
RBC maintained its outperform rating and $735 price target on the stock.
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