Rick Smith, CEO of Axon Enterprises.
Adam Jeffery | CNBC
Axon Enterprise‘s stock surged more than 20% after the maker of Tasers, body cameras and drones topped Wall Street’s fourth-quarter estimates as artificial intelligence accelerated demand for its software products
The company reported adjusted earnings of $2.15 per share on $797 million in revenue, surpassing the $1.60 per share and $755 million in revenue expected by analysts surveyed by LSEG.
Axon also issued upbeat revenue guidance for 2026, calling for growth between 27% and 30%, compared to a 25.8% estimate.
CEO Rick Smith said that since starting the company in 1993, AI has brought a “moment unlike anything” he has seen.
“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,” he told analysts on an earnings call Tuesday.
Axon said AI capabilities accounted for about 10%, or $750 million, of total bookings last year as it infused more tech into its tools.
Some of those AI features include automatic license plate recognition and a voice-activated companion built into a body camera. The tool, known as Axon Assistant, attracted more than 500 customers.
Finance chief Brittany Bagley said Axon expects its software business, which grew 40% during the quarter to $343 million, to soon outpace hardware growth due to AI tailwinds.
Revenue grew 39% from a year ago. Net income totalled about $3 million, or 3 cents per share, down from $135 million, or $1.67 per share a year ago. Axon attributed the shift to operating losses and strategic investment activities.
The company also set 2028 targets for $6 billion in annual revenue and 28% adjusted EBITDA margin.
