TLDR
- Axon Enterprise delivered Q4 results with adjusted EPS of $2.15 and revenue of $797M, exceeding analyst expectations of $1.60 EPS and $755M revenue.
- Year-over-year revenue climbed 39%, with the software division surging 40% to reach $343M.
- The company’s AI Era product portfolio secured $750M in bookings throughout fiscal 2025, accounting for 10% of all orders.
- Management projects 27–30% revenue expansion for 2026, outpacing Wall Street’s 25.8% consensus forecast.
- Axon established a 2028 objective of reaching $6B in annual revenue alongside a 28% adjusted EBITDA margin.
Axon Enterprise delivered an impressive fourth-quarter performance that propelled shares upward by more than 18% on February 25, 2026.
The public safety technology leader posted adjusted earnings of $2.15 per share, significantly surpassing the $1.60 analyst consensus. Total revenue reached $797 million, comfortably exceeding the $755 million Wall Street had anticipated.
Year-over-year revenue expansion hit 39% during the quarter. Those figures represent substantial momentum that’s difficult to overlook.
Despite the revenue strength, net income experienced a notable contraction — declining to just $3 million, or $0.03 per share, down from $135 million, or $1.67 per share in the comparable year-ago period. Management attributed this decrease to operational losses and strategic capital investments.
The software division emerged as a particularly bright spot, expanding 40% to generate $343 million. CFO Brittany Bagley highlighted artificial intelligence as a primary catalyst behind this expansion, noting expectations that software revenue will eventually surpass hardware sales.
AI Products Driving Bookings
Axon’s AI Era suite of products generated $750 million in bookings throughout fiscal 2025, comprising 10% of the company’s total booking volume.
This product family encompasses automated license plate recognition technology and Axon Assistant, an intelligent voice assistant integrated directly into body cameras. Axon Assistant has already been adopted by more than 500 clients.
CEO Rick Smith characterized artificial intelligence as a transformative catalyst for the organization, emphasizing its capacity to create substantial value through what he termed responsible implementation.
Overall bookings expanded 53% in the fourth quarter, a metric that captured Wall Street’s focus.
2026 and 2028 Guidance
For fiscal year 2026, Axon projected revenue growth in the range of 27% to 30%. This forecast exceeded the Street’s consensus estimate of approximately 25.8%. The company’s EBITDA margin outlook similarly surpassed analyst projections.
Extending the timeline further, Axon established a 2028 revenue goal of $6 billion accompanied by an adjusted EBITDA margin of 28%. The analyst community responded positively to these long-term targets.
The international segment demonstrated solid traction as well, with management disclosing two nine-figure contract wins during the reporting period.
Analyst Reactions
TD Cowen elevated its price objective on AXON to $950 from $925, keeping its previous rating intact. The investment 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 metric.
Craig-Hallum maintained its Buy recommendation while adjusting its price target downward from $910 to $820, nevertheless acknowledging the robust quarterly performance.
RBC Capital preserved an Outperform rating while reducing its target from $860 to $735, emphasizing Axon’s demonstrated capability to penetrate new product verticals.
Piper Sandler decreased its target from $753 to $690 but retained its Overweight stance, spotlighting the company’s expanding global sensor infrastructure and artificial intelligence capabilities.
Raymond James reaffirmed an Outperform rating with an $800 price objective, characterizing the 2028 projections as exceeding consensus expectations.
Citizens kept a Market Outperform rating in place with an $825 price target.
Axon’s trailing twelve-month revenue totaled $2.78 billion, while gross profit margins approached 60%, based on InvestingPro data.
