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Key Takeaways
- Axon Enterprise delivered impressive Q4 results with adjusted EPS of $2.15 and $797M in revenue, surpassing analyst projections of $1.60 EPS and $755M revenue.
- Year-over-year revenue climbed 39%, with software revenue surging 40% to reach $343M.
- The company’s AI Era product portfolio secured $750M in bookings throughout fiscal 2025, accounting for 10% of overall orders.
- Company forecasts call for 27–30% revenue expansion in 2026, outpacing Wall Street’s 25.8% projection.
- Management announced ambitious 2028 objectives: $6B in annual revenue alongside a 28% adjusted EBITDA margin.
Axon Enterprise delivered exceptional fourth-quarter performance, propelling shares upward by more than 18% on February 25, 2026.
The public safety technology leader announced adjusted earnings per share of $2.15, significantly exceeding analyst expectations of $1.60. Total revenue reached $797 million, comfortably beating the $755 million consensus estimate.
Year-over-year revenue expansion hit 39% versus the comparable quarter. Such impressive growth metrics command attention from market participants.
Despite the revenue triumph, net income experienced a significant contraction — declining to $3 million, or $0.03 per diluted share, compared to $135 million, or $1.67 per share in the year-ago period. Management attributed the decrease to operational losses and deliberate strategic investments.
The software division emerged as a particularly bright spot, expanding 40% to hit $343 million. CFO Brittany Bagley emphasized that artificial intelligence served as a primary catalyst for this expansion, adding that the company anticipates software revenue will eventually surpass hardware sales.
Artificial Intelligence Portfolio Powers Booking Growth
Axon’s AI Era product suite generated $750 million in bookings throughout fiscal 2025, constituting 10% of aggregate bookings.
The portfolio encompasses automated license plate recognition technology and Axon Assistant, an AI-powered voice assistant integrated into body-worn cameras. Axon Assistant has already attracted over 500 customer organizations.
CEO Rick Smith characterized artificial intelligence as a game-changing element for the organization, emphasizing its capacity to create value through what he termed responsible implementation.
Overall bookings expanded 53% during Q4, a metric that captured Wall Street’s focus.
Forward-Looking Projections for 2026 and Beyond
For fiscal 2026, Axon projects revenue growth ranging from 27% to 30%. This outlook exceeds the Street consensus hovering around 25.8%. The company’s EBITDA margin forecast similarly topped analyst expectations.
Extending the timeline, Axon established a 2028 revenue objective of $6 billion accompanied by an adjusted EBITDA margin of 28%. The analyst community broadly responded favorably to these long-term targets.
The international segment demonstrated positive momentum as well, securing two deals exceeding nine figures during the quarter.
Wall Street Weighs In
TD Cowen elevated its AXON price target to $950 from $925, maintaining its current rating. The firm observed that shares trade at approximately 9.5 times enterprise value to calendar year 2027 projected sales, basing its updated target on 17 times that identical measure.
Craig-Hallum preserved a Buy rating while adjusting its target downward from $910 to $820, nevertheless acknowledging the robust quarterly performance.
RBC Capital sustained an Outperform rating while reducing its target from $860 to $735, emphasizing Axon’s capability to penetrate additional product verticals.
Piper Sandler lowered its target from $753 to $690 but maintained its Overweight rating, spotlighting the company’s expanding global sensor infrastructure and AI integration capabilities.
Raymond James reaffirmed an Outperform rating with an $800 target, describing the 2028 objectives as more ambitious than consensus anticipated.
Citizens upheld a Market Outperform rating with an $825 price target.
Axon’s trailing twelve-month revenue totaled $2.78 billion, featuring gross profit margins approaching 60%, per InvestingPro data.
