Axon Enterprise (AXON) shares surged more than 20% following its fourth-quarter results, which highlighted rising demand for the company’s AI-enhanced software tools and growing adoption across its customer base.
The Scottsdale-based company posted record results as Software & Services revenue increased 40% to $343 million, highlighting continued momentum in its high-margin SaaS business.
Full-year revenue rose 33% to $2.8 billion, marking the fourth consecutive year of growth above 30%, supported by strong bookings of $7.4 billion and future contracted bookings of $14.4 billion.
Net income for the fourth quarter totaled $3 million, while non-GAAP net income reached $178 million, and Adjusted EBITDA came in at $206 million. The company maintained a Rule of 40 above 55 and delivered a 25.5% full-year Adjusted EBITDA margin despite ongoing strategic investments in AI, new product categories, and acquisitions.
Axon has projected revenue growth between 27% and 30% for 2026. Also, the company has set ambitious 2028 revenue and adjusted EBITDA targets of $6 billion and 28%, reflecting management’s confidence in the company’s rapidly expanding AI ecosystem and recurring revenue model.
Rick Smith, who founded the company in 1993 and serves as chief executive, described the current environment as unprecedented in the firm’s history.
“If we deploy AI more aggressively and more thoughtfully than anyone else in this space, while honoring the responsibility that comes with the operating environment we operate in, we will create value that our customers simply cannot replicate,” Smith said on an earnings call.
