The maker of Taser stun guns says it's becoming an AI company as bookings surge

By Steve Goldstein

Axon Enterprises earnings easily clear analyst estimates

Axon, the maker of the Taser stun guns, has seen strong AI services growth.

Axon Enterprises stock jumped on Wednesday, as the maker of Taser stun guns said its efforts at providing artificial intelligence-driven services to law enforcement clients have led to bookings.

Axon (AXON) reported adjusted earnings of $2.15 a share on 39% sales growth to $797 million, far exceeding the FactSet-compiled earnings estimate of $1.60 in earnings per share on sales of $756 million.

The company reported $7.4 billion in annual bookings last year, up 46% year-on-year and it credited what it calls its AI Era Plan with generating $750 million of that.

The AI services help officers draft report narratives based on audio transcripts, translate conversations and streamline evidence review. "We are positioned to be a winner in this AI-driven environment, and we intend to lap the field," CEO Patrick Smith told analysts on a conference call.

Analysts said there was basis to that claim. "Axon is extending its lead in natively building AI software into its physical sensor products, strengthening its foundation as a data and vision ingest for AI applications in public safety and enterprise," said Goldman Sachs analysts led by Michael Ng.

The Goldman analysts noted that two of its largest deals in the fourth quarter were with European cloud deployments attached to connected device products.

The company targeted revenue growth between 27% and 30% for this year on margins of 25.5% - both slightly ahead of estimates - while setting a 28% margin target on $6 billion revenue for 2028.

Axon shares jumped 16% in premarket trade, having dropped 22% this year heading into the results.

"Taken together, the results and outlook reinforce Axon's trajectory, which had been questioned after the 3Q25 print as well as due to broader concerns regarding AI-driven disruption for software-aligned companies, as Axon highlighted its differentiated and defensible position, led by its ability to drive innovation across an integrated stack of hardware, software, and services, supported by complex, regulated industries with long-term contracts and customer relationships," said JPMorgan analysts led by Joseph Cardoso.

-Steve Goldstein

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02-25-26 0519ET