Axon Enterprise beat earnings estimates in 2025, boosted by strong software, AI, and international growth, and raised 2026 revenue guidance.

Axon Enterprise reported strong fourth-quarter and full-year 2025 results, with revenue of $797 million—up 39% year-over-year—and adjusted earnings of $2.15 per share, surpassing estimates. Bookings exceeded $7 billion, driven by growth in software, AI-powered devices, and international markets, including record $1 billion in international bookings. Software and services revenue rose 40%, annual recurring revenue hit $1.3 billion, and net revenue retention reached 125%. The company raised 2026 revenue guidance to $6 billion, projecting 27%–30% growth and a 25.5% adjusted EBITDA margin. Despite a slight gross margin decline due to tariffs and product mix, Axon emphasized continued investment in AI, connected sensors, and expansion into 911, enterprise, and global markets. Shares rose 15% in after-hours trading.