So, you know Axon Enterprise (AXON) as the company that makes Tasers and police body cameras. But its latest earnings report tells a different story—one of a tech company on a serious growth tear.
The numbers are straightforward and impressive. For the fourth quarter, Axon reported revenue of $796.72 million. That wasn't just good; it was a beat, sailing past the $755.40 million analysts were expecting. On the bottom line, adjusted earnings came in at $2.15 per share, handily topping the estimate of $1.60 per share, according to market data.
But the real story is in the growth. Total revenue was up a whopping 39% compared to the same quarter last year. What's fueling that? It's not just hardware. The company pointed to premium software adoption, its new TASER 10 device, the Axon Body 4 camera, and even counter-drone equipment. The software and services segment itself saw revenue jump 40% year-over-year to $343 million.
Perhaps the most telling metric for a company transitioning to a subscription model is Annual Recurring Revenue (ARR). That climbed 35% year-over-year to $1.3 billion, driven by customers signing up for premium offerings and new cloud products. The company ended the quarter with a hefty war chest of $1.7 billion in cash, cash equivalents, and short-term investments.
Looking ahead, management isn't tapping the brakes. They issued full-year 2026 revenue guidance of $3.53 billion to $3.61 billion. That's above the $3.44 billion analysts were modeling and represents growth of 27% to 30%. But they're looking even further out, anticipating $6 billion in annual revenue by 2028 with adjusted EBITDA margins around 28%.
"Our momentum is accelerating as we enter 2026, supported by disciplined investment, strong product market fit and deep, trusted relationships with our customers," the company said in a statement.
The vision for getting there involves a big bet on artificial intelligence. Founder and CEO Rick Smith put it bluntly: "Here's my conviction: nobody should be more aggressive or more thoughtful on AI than Axon. If we get that balance right, we won't just be a vendor, we'll be the partner our customers can't imagine operating without."
Investors liked what they heard. After the bell, Axon Enterprise shares were up 14.68%, trading at $507.48. Company executives were scheduled to discuss the results further on an earnings call.
