Key Stats for Axon Enterprise Stock
- Price change for Axon Enterprise stock: 17.5%
- $AXON Share Price as of Feb. 25: $520
- 52-Week High: $886
- $AXON Stock Price Target: $780
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What Happened?
Axon Enterprise (AXON) stock surged nearly 18% on Wednesday (February 25) after the Taser and body camera maker delivered blowout fourth-quarter results powered by explosive AI software growth.
- The company crushed Wall Street expectations across the board, with adjusted earnings of $2.15 per share on $797 million in revenue, well above analyst estimates of $1.60 per share and $755 million in revenue.
- What really caught investors’ attention was Axon’s guidance for 2026.
- The company expects revenue growth between 27% and 30%, significantly higher than the 25.8% analysts had projected.
- Even more impressive, AI-powered products accounted for $750 million in bookings last year, representing about 10% of the company’s total business in just the first full year of availability.
CEO Rick Smith called AI a “moment unlike anything” he’s seen in 30 years of running the company.
Axon’s AI features include automatic license plate recognition, voice-activated assistants built into body cameras, and real-time translation capabilities for 911 calls.
The flagship Axon Assistant tool already has more than 500 public safety agencies using it to generate over 200,000 monthly messages.
Finance chief Brittany Bagley noted that the company’s software business grew 40% in the quarter to $343 million and expects it to soon outpace hardware growth, driven by AI adoption.
The company also unveiled ambitious 2028 targets of $6 billion in annual revenue and 28% adjusted EBITDA margins, essentially doubling from current levels.
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What the Market Is Telling Us About Axon Enterprise Stock
The massive jump in Axon Enterprise stock signals investors are excited about the company’s position in the AI transformation of public safety.
With over $7 billion in bookings last year, up more than 40%, and a net revenue retention rate of 125%, Axon is demonstrating strong demand across its portfolio.
The company is uniquely positioned at the intersection of hardware, software, and AI in heavily regulated markets where trust and security matter most.
Unlike pure software companies that could face AI monetization, Axon owns the complete ecosystem from sensors to cloud services, making it harder for competitors to disrupt.
Smith emphasized that Axon isn’t just adding AI as an afterthought but building it natively into workflows through devices officers already wear and use daily.
This integrated approach is driving adoption of premium subscription plans that can deliver nearly $600 in annual revenue per officer, more than double what Axon charged five years ago.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
