Axon Enterprises stock soared over 17% following a robust fourth-quarter earnings report that surpassed Wall Street expectations. The company, known for its Tasers, body cameras, and drones, experienced a significant surge in demand for its software products, largely driven by the accelerating integration of artificial intelligence.
Axon reported adjusted earnings of $2.15 per share on revenue of $797 million, comfortably exceeding the consensus estimates of $1.60 per share and $755 million in revenue compiled by LSEG. Looking ahead, the company provided an optimistic revenue outlook for 2026, projecting growth in the range of 27% to 30%, an upward revision from the previously estimated 25.8% increase.
During the earnings call, CEO Rick Smith described the current technological landscape, particularly concerning AI, as a “moment unlike anything” he has witnessed since founding the company in 1993. He emphasized Axon’s strategic advantage, stating, “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.”
AI capabilities are already making a substantial impact, accounting for approximately 10% of total bookings last year, translating to around $750 million. This reflects Axon’s concerted effort to infuse advanced AI technologies into its product offerings. Notable AI-driven features include automatic license plate recognition and the “Axon Assistant,” a voice-activated tool integrated into body cameras that has already garnered over 500 customers.
Brittany Bagley, Axon’s Chief Financial Officer, highlighted the company’s strategic pivot towards software, which saw a 40% growth in the quarter to $343 million. She anticipates that the software business will soon outpace hardware growth, fueled by the “AI tailwinds.” While overall revenue saw a 39% year-over-year increase, net income for the quarter was approximately $3 million, or 3 cents per share. This decline from $135 million, or $1.67 per share, in the prior year was attributed to operating losses and strategic investment activities.
Underscoring its long-term vision, Axon also established ambitious targets for 2028, aiming for $6 billion in annual revenue and a 28% adjusted EBITDA margin. This forward-looking guidance signals confidence in the company’s strategic direction and its ability to capitalize on emerging technological trends.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/19357.html
