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Axon Enterprise beats fourth-quarter profit estimates, shares rise
Axon Enterprise beats fourth-quarter profit estimates, shares rise
Reuters
Wed, February 25, 2026 at 7:00 AM GMT+9 1 min read
In this article:
AXON
+4.50%
Feb 24 (Reuters) - Taser-maker Axon Enterprise beat Wall Street estimates for fourth-quarter profit on Tuesday, driven by strong demand for its security devices and software products.
Shares of the Arizona-based company were up 15% in extended trading.
Best known for its law enforcement technologies such as TASER energy weapons, body-worn cameras and digital evidence management systems, Axon has benefited from rising corporate spending on executive security and increased federal investment in immigration enforcement.
Connected devices, Axon’s biggest segment, saw a 38% jump in fourth-quarter revenue to about $454.2 million from $330.2 million a year earlier, signaling strong demand for its offerings including the TASER 10, Axon Body 4, counter-drone solutions, virtual reality training and fleet systems.
However, the segment’s adjusted gross margin decreased to 49.3% from 52.2%, hurt by global tariffs and product mix.
The software and services segment also recorded strong growth with quarterly revenue rising 40% from a year earlier to $342.5 million, driven by new users and increased adoption of premium software offerings by existing customers.
Axon expects 2026 revenue to grow about 27% to 30% from a year earlier.
On an adjusted basis, the company earned $2.15 per share for the fourth quarter, beating analysts’ average estimates of $1.60 per share, according to data compiled by LSEG.
Quarterly revenue came in at $796.7 million, higher than estimates of $755.2 million.
(Reporting by Parth Chandna; Editing by Jonathan Ananda)
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