TLDR
- Axon Enterprise exceeded Q4 expectations, delivering adjusted EPS of $2.15 and revenue of $797M versus analyst estimates of $1.60 EPS and $755M revenue.
- Year-over-year revenue climbed 39%, with the software division expanding 40% to reach $343M.
- The company’s AI Era product portfolio secured $750M in bookings throughout fiscal 2025, accounting for 10% of overall orders.
- Management issued 2026 revenue growth guidance of 27–30%, surpassing the consensus estimate of 25.8%.
- Axon announced ambitious 2028 goals targeting $6B in yearly revenue alongside a 28% adjusted EBITDA margin.
Axon Enterprise delivered impressive fourth-quarter results that propelled shares higher by more than 18% on February 25, 2026.
The law enforcement technology provider announced adjusted earnings of $2.15 per share, significantly exceeding the $1.60 consensus figure. Quarterly revenue reached $797 million, surpassing the $755 million Wall Street anticipated.
Year-over-year revenue expansion hit 39%, a performance that demands attention from investors.
Despite the revenue strength, net income experienced a dramatic decline — contracting to just $3 million, or $0.03 per share, down from $135 million, or $1.67 per share in the year-ago period. Management attributed this decrease to operational losses coupled with strategic capital deployment.
The software division emerged as a clear winner, expanding 40% to hit $343 million. CFO Brittany Bagley highlighted artificial intelligence as a primary catalyst for this acceleration, noting expectations that software revenue will eventually surpass hardware sales.
AI-Driven Product Line Gains Traction
Axon’s AI Era product portfolio generated $750 million in bookings throughout fiscal 2025, comprising 10% of the company’s total booking volume.
The lineup features automated license plate recognition technology and Axon Assistant, an AI-powered voice interface integrated into body-worn cameras. Axon Assistant has already attracted more than 500 customers.
CEO Rick Smith characterized artificial intelligence as a transformative element for the business, emphasizing the company’s commitment to what he termed responsible AI implementation.
Overall bookings surged 53% in the fourth quarter, a metric that captured Wall Street’s interest.
Forward-Looking Projections for 2026 and 2028
For fiscal 2026, Axon projected revenue expansion between 27% and 30%, exceeding the Street consensus hovering around 25.8%. The company’s EBITDA margin forecast similarly topped analyst expectations.
Extending the outlook further, Axon established a 2028 objective of $6 billion in annual revenue paired with an adjusted EBITDA margin of 28%. The analyst community responded favorably to these ambitious benchmarks.
International operations demonstrated positive momentum as well, with management announcing two deals exceeding nine figures during the reporting period.
Wall Street Weighs In
TD Cowen elevated its price objective on AXON to $950 from $925 while maintaining its prior rating. The firm observed that shares currently trade at approximately 9.5 times enterprise value to calendar 2027 projected sales, basing its updated target on a 17x multiple of that figure.
Craig-Hallum preserved its Buy recommendation but reduced its target from $910 to $820, while still acknowledging the quarter’s impressive performance.
RBC Capital sustained an Outperform rating while adjusting its price target downward from $860 to $735, emphasizing Axon’s demonstrated capability to penetrate new product segments.
Piper Sandler lowered its target from $753 to $690 but maintained its Overweight stance, spotlighting the company’s expanding global sensor infrastructure and artificial intelligence capabilities.
Raymond James reaffirmed an Outperform rating paired with an $800 price objective, describing the 2028 targets as more aggressive than consensus projections.
Citizens kept a Market Outperform rating alongside an $825 price target.
Axon’s trailing twelve-month revenue stood at $2.78 billion, accompanied by gross profit margins approaching 60%, per InvestingPro data.
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