The Arizona company behind TASER devices and police body cameras delivered stronger-than-expected fourth-quarter earnings on Tuesday, with Axon Enterprise surpassing Wall Street profit projections thanks to robust sales of security equipment and software solutions.
Investors responded positively to the news, pushing Axon’s stock price up 15% during after-hours trading sessions.
The company, widely recognized for manufacturing law enforcement equipment including TASER energy devices, officer-worn cameras, and digital evidence storage systems, has capitalized on increased corporate investment in executive protection and expanded federal spending on immigration enforcement initiatives.
Axon’s connected devices division, which represents the company’s largest revenue stream, experienced remarkable growth with fourth-quarter sales climbing 38% to approximately $454.2 million, compared to $330.2 million during the same period last year. This surge reflects heightened interest in the company’s product lineup, which includes the TASER 10, Axon Body 4 camera, anti-drone technology, virtual reality training systems, and fleet management solutions.
Despite the revenue growth, the connected devices segment saw its adjusted profit margins decline from 52.2% to 49.3%, impacted by international trade tariffs and changes in the product sales mix.
The company’s software and services division also demonstrated impressive performance, with quarterly revenue increasing 40% year-over-year to reach $342.5 million. This growth stemmed from new customer acquisitions and existing clients upgrading to premium software packages.
Looking ahead, Axon projects 2026 revenue will increase between 27% and 30% compared to the previous year.
The company reported adjusted earnings of $2.15 per share for the fourth quarter, significantly exceeding the $1.60 per share average forecast from analysts surveyed by LSEG.
Total quarterly revenue reached $796.7 million, surpassing analyst expectations of $755.2 million.
