Axon Enterprise Inc. (AXON) shares rose 7.9% in extended trading Tuesday after the maker of tasers and body cameras reported quarterly results that topped Wall Street expectations and issued a bullish 2026 outlook .
Q4 Financial Highlights
| Metric | Q4 2025 | vs. Expectations |
|---|---|---|
| Revenue | $797 million | Beat $755M estimate (+39% YoY) |
| Adjusted EPS | $2.15 | Beat $1.60 estimate |
| Software & Services Revenue | $343 million | +40% YoY |
| Adjusted EBITDA | $206 million | +46% YoY |
The company reported non-GAAP net income of $178 million for the quarter . However, GAAP net income fell to $3 million, or $0.03 per share, from $135 million, or $1.67 per share, a year earlier .
2026 Outlook
Axon projects 27% to 30% revenue growth for 2026, with an adjusted EBITDA margin target of 25.5% .
2028 Targets
The company introduced ambitious long-term targets for 2028:
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Annual revenue: Approximately $6 billion
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Adjusted EBITDA margin: 28%
These targets reflect rising demand across Axon’s hardware, software, and AI-driven products .
AI Leadership
CEO Rick Smith emphasized the company’s focus on artificial intelligence: “Here’s my conviction: nobody should be more aggressive or more thoughtful on AI than Axon” .
Margin Dynamics
Gross margin tightened, with total company gross margin down 220 basis points to 57.9% . Axon cited global tariffs and an increase in Platform Solutions mix within Connected Devices as contributing factors .
Key Metrics
Axon ended 2025 with:
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Annual recurring revenue: $1.35 billion (+35% YoY)
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Future contracted bookings: $14.4 billion (+43% YoY)
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The company expects to fulfill about 20% to 25% of that balance over the next 12 months
