TLDR

  • Axon Enterprise delivered Q4 results featuring $2.15 adjusted EPS and $797M revenue, surpassing analyst projections of $1.60 EPS and $755M revenue.
  • Year-over-year revenue climbed 39%, with software revenue advancing 40% to reach $343M.
  • The company’s AI Era product portfolio secured $750M in bookings during fiscal 2025, accounting for 10% of overall orders.
  • Management provided 2026 revenue growth guidance of 27–30%, exceeding the Street’s 25.8% projection.
  • Axon outlined a 2028 objective of $6B in annual revenue alongside a 28% adjusted EBITDA margin.

Axon Enterprise delivered impressive fourth-quarter results, driving shares upward by more than 18% on February 25, 2026.

The company achieved adjusted earnings per share of $2.15, significantly exceeding the analyst consensus of $1.60. Quarterly revenue reached $797 million, surpassing the $755 million estimate.

Year-over-year revenue expanded 39% during the period. Such robust expansion commands attention from investors.


AXON Stock Card
Axon Enterprise, Inc., AXON

Meanwhile, net income experienced a substantial contraction — declining to $3 million, or $0.03 per share, from $135 million, or $1.67 per share in the comparable prior-year period. Management attributed this decrease to operational losses and strategic capital deployment.

The software division demonstrated exceptional performance, advancing 40% to $343 million. CFO Brittany Bagley highlighted AI as a primary catalyst for this expansion, projecting that software revenue will eventually surpass hardware sales.

AI Products Driving Bookings

Axon’s AI Era product portfolio generated $750 million in bookings throughout fiscal 2025, comprising 10% of total bookings.

The lineup features automated license plate recognition technology and Axon Assistant, a voice-enabled assistant integrated into body cameras. Axon Assistant has already attracted more than 500 clients.

CEO Rick Smith characterized AI as a transformative element for the organization, emphasizing its capacity to create value through what he termed responsible implementation.

Total bookings expanded 53% in Q4, a figure that captured Wall Street’s interest.

2026 and 2028 Guidance

For fiscal 2026, Axon projected revenue growth between 27% and 30%. This forecast exceeded the consensus estimate of approximately 25.8%. The company’s EBITDA margin guidance similarly topped expectations.

Looking ahead to 2028, Axon established a revenue objective of $6 billion paired with an adjusted EBITDA margin of 28%. The analyst community responded favorably to these projections.

International operations demonstrated positive momentum as well, with the company securing two nine-figure contracts during the quarter.

Analyst Reactions

TD Cowen increased its price target on AXON to $950 from $925, keeping its current rating intact. The firm observed that shares trade at approximately 9.5 times enterprise value to calendar year 2027 projected sales, basing its revised target on 17 times that metric.

Craig-Hallum retained a Buy rating while adjusting its target downward from $910 to $820, still recognizing the impressive quarterly performance.

RBC Capital preserved an Outperform rating while reducing its target from $860 to $735, acknowledging Axon’s capacity to penetrate new product categories.

Piper Sandler lowered its target from $753 to $690 while maintaining its Overweight rating, emphasizing the company’s global sensor infrastructure and AI capabilities.

Raymond James reaffirmed an Outperform rating alongside an $800 target, describing the 2028 objectives as more ambitious than consensus forecasts.

Citizens kept a Market Outperform rating with an $825 price target.

Axon’s trailing twelve-month revenue totaled $2.78 billion, accompanied by gross profit margins approaching 60%, per InvestingPro data.