AXON · 10-Q · 2026Q2 · Full report
Trade Policy and Tariffs
AXON ENTERPRISE, INC. · 2026-08-06 · Importance 59 · Surprise 60 · Matches filing data
On February 20, 2026, the Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were unauthorized. Axon received $47.4 million of tariff refunds during the three months ended June 30, 2026, including $18.1 million previously expensed to 2025 cost of sales. The remaining refund primarily related to inventory and property and equipment, most of which would otherwise have been expensed in 2026. Tariff refunds increased Connected Devices gross margin and partially offset margin pressure from a higher mix of counter-drone equipment.
Key facts
- On February 20, 2026, the Supreme Court determined that tariffs imposed under IEEPA were unauthorized and during the three months ended June 30, 2026 we received $47.4 million in refunds. source
- Of the $47.4 million in tariff refunds, $18.1 million had been previously expensed in 2025 to cost of sales. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | realized | +0.6% | On February 20, 2026, the Supreme Court determined that tariffs imposed under IEEPA were unauthorized and during the three months ended… |