Axon Enterprise Inc (NASDAQ:AXON) reported financial results for the fourth quarter after the bell on Tuesday. Here’s a rundown of the report.
- Axon Enterprise stock is charging ahead with explosive momentum. What’s fueling AXON momentum?
Axon Beats Estimates On Top And Bottom Lines
Axon posted fourth-quarter revenue of $796.72 million, beating analyst estimates of $755.40 million. The company reported fourth-quarter adjusted earnings of $2.15 per share, beating estimates of $1.60 per share, according to Benzinga Pro.
Total revenue was up 39% year-over-year, driven by premium software adoption, TASER 10, Axon Body 4 and counter-drone equipment. Software and services revenue increased 40% year-over-year to $343 million.
Annual Recurring Revenue also increased 35% year-over-year to $1.3 billion, primarily driven by the adoption of premium offerings and new users of cloud products.
“Our momentum is accelerating as we enter 2026, supported by disciplined investment, strong product market fit and deep, trusted relationships with our customers,” the company said.
Axon had $1.7 billion of cash, cash equivalents and short-term investments at quarter's end.
Axon issued full-year 2026 revenue guidance of $3.53 billion to $3.61 billion versus estimates of $3.44 billion, representing growth of 27% to 30%. Looking forward to 2028, the company anticipates $6 billion in annual revenue and adjusted EBITDA margins of approximately 28%.
“Here’s my conviction: nobody should be more aggressive or more thoughtful on AI than Axon. If we get that balance right, we won’t just be a vendor, we’ll be the partner our customers can’t imagine operating without,” said Rick Smith, founder and CEO of Axon.
Axon executives will further discuss the quarter on an earnings call scheduled for 4:30 p.m. ET.
AXON Shares Move Higher After Hours
AXON Price Action: Axon Enterprise shares were up 14.68% in after-hours Tuesday, trading at $507.48 at the time of publication, according to Benzinga Pro.
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