Axon Enterprise Jumps 16% on Q4 Results, Upbeat Guidance

Axon Enterprise, Inc. shares rose 16% in overnight trading after the maker of tasers and body cameras reported quarterly results that topped Wall Street expectations and issued a 2026 outlook calling for 27% to 30% revenue growth.

Fourth-quarter revenue was $797 million, up 39% from a year earlier and above the consensus estimate of $755 million. Software and services revenue grew 40% to $343 million, driven by new users and increased adoption of premium software by existing customers.

On an adjusted basis, Axon (AXON) reported earnings of $2.15 a share, topping the $1.60 estimate. The company said non-GAAP net income was $178 million for the quarter.

Net income fell to $3 million, or $0.03 a share, from $135 million, or $1.67 a share.

Ebitda rises 46%

Axon (AXON) said earnings before interest, taxes, depreciation and amortization on an adjusted basis was $206 million, up 46% from a year earlier, reflecting higher revenue and continued investment in research and development. The company (AXON) reported an adjusted ebitda margin of 25.9% for the quarter and set a 2026 target of a 25.5% adjusted ebitda margin.

Gross margin tightened, with total company gross margin down 220 basis points to 57.9%. Axon (AXON) cited global tariffs and an increase in Platform Solutions mix within Connected Devices.

New 2028 targets call for $6 billion revenue

Axon (AXON) introduced new targets for 2028 of about $6 billion in annual revenue and a 28% adjusted ebitda margin, pointing to rising demand across its hardware, software and AI-driven products.

“Here’s my conviction: nobody should be more aggressive or more thoughtful on AI than Axon,” Axon (AXON) Founder and Chief Executive Rick Smith said in prepared remarks.

Axon (AXON) ended 2025 with annual recurring revenue of $1.35 billion, up 35%, while future contracted bookings rose 43% to $14.4 billion. The company said it expects to fulfill about 20% to 25% of that balance over the next 12 months.