New York, February 25, 2026, 12:07 EST — Regular session
- Axon stock surged in U.S. trading following the company’s latest quarterly numbers and forward guidance.
- Investors are keeping an eye on bookings, along with AI-heavy software add-ons, to see if these continue to fuel growth.
Axon Enterprise, Inc. jumped 22% to $540.04 late Wednesday, building on gains sparked by its recent quarterly results. The shares opened at $498.43 and have so far swung between $498.30 and $551.97. (Axon IR)
Axon reported a 46% jump in 2025 bookings, hitting $7.4 billion in signed customer orders. Looking ahead, the company’s projecting 2026 revenue growth in the 27% to 30% range, with adjusted EBITDA margin guidance at 25.5%. Founder and CEO Rick Smith emphasized, “nobody should be more aggressive or more thoughtful on AI than Axon.” After a real-world live-translation demo, a Bernalillo County sheriff remarked, “AI’s here.” For 2028, Axon has set its sights on about $6 billion in annual revenue and a 28% adjusted EBITDA margin. (Axon IR)
Axon has shaken up its reporting structure, splitting out software and services from hardware in its latest annual filing—a move that could reshape how the Street gauges its momentum. Under the new approach, “Software and Services” covers its cloud-driven SaaS lineup, which leverages AI, while “Connected Devices” accounts for TASER weapons, body cams, both fixed and in-car cameras, plus drone and counter-drone systems. (QuoteMedia)
Below the surface, the quarter was a mixed bag. Axon boosted its non-GAAP profit, yet reported net income barely budged—heavy spending on hiring and product development kept margins tight.
Management flagged strong uptake of premium software and steady demand for TASER 10, Axon Body 4, plus counter-drone gear. They also mentioned margin pressure—tariffs and product mix weighing on results. It’s notable: more of the growth now hinges on software pull-through tied to devices, not merely selling hardware in isolated deals.
Axon’s run this year has drawn support from a boost in federal dollars for immigration enforcement and more corporate money flowing into executive security, Reuters reported. President Joshua Isner told analysts there’s a “major opportunity” in federal law enforcement and in counter-UAS, or anti-drone, tech. Analysts pointed to Axon’s growing reach—one said the company’s AI advantage is “getting ever more evident.” Another called it a “critical quarter.” Shares are trading at about 57 times forward earnings, well above the sector median, according to Reuters data. (Reuters)
Bookings don’t count as revenue, and they tend to jump around when Axon lands outsized, multi-year contracts. Even so, they’re a crucial gauge of demand for Axon’s suite of subscription software—products designed to handle automation for reporting, transcription, and evidence management.
Axon is pushing harder on that message with Axon Assistant, its voice-enabled AI tool for body cams—offering real-time translation in over 50 languages. The company is also stretching its platform into new territory, including emergency response tech and real-time operations, using acquisitions to bolster its growing 911 product lineup.
The rally narrows the margin for error. Tariffs and shifts in product mix could pressure margins, while Axon’s expenses—tied closely to stock-based pay and ongoing hiring for its AI buildout—remain vulnerable.
Traders now look ahead: Will bookings translate smoothly into recognized revenue? Is the software mix enough to keep margins climbing? The pace of enterprise segment growth next to public safety clients is in focus. Federal procurement patterns, counter-drone appetite, and possible budget shifts remain key watch points.
Axon Week lands next, set for April 7–10 in Nashville. The company’s event has investors watching for new product specifics and AI feature news—details that could quickly shift near-term outlooks. (govevents.com)
