Axon Enterprise Expands Beyond TASER Devices with Strong Software Growth

Axon Enterprise, the company behind TASER devices and body cameras, is expanding its business beyond traditional hardware sales. At the Goldman Sachs Communacopia + Technology Conference 2026, Axon outlined a growth strategy centered on its software and AI portfolio.

The company reported that five-year normalized bookings rose more than 30% in the second quarter, with full-year revenue guidance lifted to 32-34%. Software and services gross margins continue to exceed 80%, while connected devices margins are under pressure from rising memory costs for cameras.

Axon's ecosystem approach is designed to make products work better together and expand wallet share. The company estimates it has about 15% penetration in its state and local total addressable market, leaving room for more share gains. AI Era Plan revenue grew 700% year over year in the second quarter, driven by products such as DraftOne, FormOne, and translation tools.