Axon stock price soars 10% due to strong Q4 performance and optimistic outlook

LootboxPhobia · 2026-02-24T21:24:31+00:00

Axon Enterprise Inc. Q4 results exceeded expectations, with an adjusted EPS of $2.15 and revenue of $797 million, up 39% year-over-year. The company expects to maintain growth in the coming years, with fiscal year 2026 revenue projected to grow by 27%-30%. Axon's annual recurring revenue exceeds $1.3 billion, with future contract bookings reaching $14.4 billion, and market response remains positive.

LootboxPhobia

2026-02-24 21:24:31

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Scottsdale, Arizona - Axon Enterprise Inc. (NASDAQ: AXON) reported fourth-quarter results that exceeded Wall Street expectations and provided an optimistic earnings outlook, causing the stock price to rise 10%. Investors reacted positively to this strong momentum from the public safety technology company.

The company posted an adjusted earnings of $2.15 per share for the quarter, beating analyst estimates of $1.60 by $0.55. Revenue reached $797 million, a 39% year-over-year increase, surpassing the analyst forecast of $755.55 million. Revenue growth was mainly driven by the adoption of advanced software, TASER 10, Axon Body 4, and counter-drone equipment.

Software and services revenue grew 40% year-over-year to $343 million, while connected device revenue increased 38% year-over-year to $454 million. The company reported a net profit of $3 million, or $0.03 per diluted share, supporting an adjusted net income of $178 million and an adjusted EBITDA of $206 million, with a profit margin of 25.9%.

Axon founder and CEO Rick Smith said, “My belief is that no one should be more aggressive or thoughtful about AI than Axon. If we strike the right balance, we will not only be a supplier but become a partner that customers cannot imagine leaving.”

For the full fiscal year 2026, Axon expects revenue to grow 27% to 30% year-over-year, with a median growth of 28.5%, implying revenue of approximately $3.57 billion. The company expects to maintain an adjusted EBITDA margin of 25.5%.

Looking further into the future, Axon has set a new target for 2028, aiming for annual revenue of about $6 billion and an adjusted EBITDA margin of 28%, reflecting confidence in its expanding product portfolio across hardware, software, and AI capabilities.

The company’s annual recurring revenue exceeds $1.3 billion, a 35% increase year-over-year, while future contract bookings reach $14.4 billion, a 43% increase.

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