Axon Enterprise (AXON) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Key performance drivers and financial outlook

• Achieved 33% revenue growth and 46% bookings growth in 2025, with strength across all products and regions, including over $1 billion in international and new product bookings.

• $750 million in bookings from new AI products, with annual conversion of 20%-25% of $14.4 billion in total bookings, and contract durations stabilizing around 10 years.

• Multi-year target of $6 billion revenue by 2028, driven by current and emerging product bookings, with investments in international expansion and data residency.

• EBITDA margin expansion of 250 basis points over three years expected, with continued R&D investment and leverage in SG&A and gross margin from software growth.

• Free cash flow conversion targeted at 60%, with inventory investments in 2025 and a focus on supply certainty for customers.

Product innovation and AI strategy

• AI Era Plan generated $750 million in bookings in its first year, designed to future-proof customer contracts and provide seamless access to ongoing AI innovation.

• New AI-driven tools like Draft One, Axon Assistant, Brief One, and Policy Chat enhance productivity and efficiency for law enforcement.

• Hardware innovation includes ALPR product launch and upcoming ABW Mini body camera, targeting both public safety and enterprise markets.

• Acquisitions of Prepared and Carbyne modernize 911 call handling with AI and cloud-based solutions, improving emergency response and triage.

• Counter-drone capabilities expanded through Dedrone acquisition, addressing needs across federal, state, local, and enterprise sectors.

Market expansion and customer segments

• Corrections market shows strong growth, similar to state and local, while federal business faces funding uncertainties but holds long-term potential with events like the World Cup and Olympics.

• International business gains momentum with significant cloud deals in Europe and ongoing investments in data residency and localization.

• Enterprise segment sees adoption of body cameras, drones, and counter-drone solutions, with ABW Mini expected to drive further retail and healthcare deployments.

• Fusus platform anticipated to be adopted across all markets, supporting integrated security and surveillance.