Axon Enterprise (AXON) Q4 2025 earnings

Axon CorporationShares rise nearly 18% after the maker of Tasers, body cameras and drones soars to the top of Wall Street fourth quarter Artificial intelligence is predicted to accelerate the demand for software products.

The company reported adjusted earnings of $2.15 per share on revenue of $797 million, beating the $1.60 per share and revenue of $755 million expected by analysts surveyed by LSEG.

Axon also issued an optimistic revenue forecast for 2026, calling for growth of 27% to 30%, compared to a forecast of 25.8%.

CEO Rick Smith said artificial intelligence has brought him “a moment unlike any other” since the company was founded in 1993.

“If we deploy AI more aggressively and thoughtfully than anyone else in this space, and if we honor the responsibility that comes with the operating environment in which we operate, we will create value that our customers will never be able to replicate,” he told analysts on Tuesday’s earnings call.

Axon said AI capabilities accounted for about 10%, or $750 million, of total bookings last year as it incorporated more technology into its vehicles.

Some of these AI features include automatic license plate recognition and a voice-activated assistant built into the body camera. The tool, known as Axon Assistant, attracted more than 500 customers.

Finance chief Brittany Bagley said she expects Axon’s software business, which grew 40% in the quarter to $343 million, will soon outpace hardware growth due to AI headwinds.

Revenue was up 39% from a year ago. Net income was about $3 million, or 3 cents per share, compared to $135 million, or $1.67 per share, a year earlier. Axon attributed this change to operating losses and strategic investment activities.

The company also set 2028 targets for $6 billion in annual revenue and 28% adjusted EBITDA margin.