Rick Smith, CEO of Axon Enterprises.
Adam Jeffrey | CNBC
axon enterpriseShares of the maker of Tasers, body cameras and drones rose more than 20% after the company beat Wall Street’s fourth-quarter forecasts as artificial intelligence accelerated demand for its software products.
The company reported adjusted earnings of $2.15 per share on revenue of $797 million, beating the estimates of analysts surveyed by LSEG of $1.60 per share and revenue of $755 million.
Axon also announced a positive earnings outlook for 2026, calling for growth of 27% to 30% compared to the expected 25.8%.
CEO Rick Smith said that since the company’s founding in 1993, AI has led to a “different moment” that has never been seen before.
“If we deploy AI more aggressively and thoughtfully than anyone else in this space, while respecting the responsibilities associated with the business environment in which we operate, we will create unparalleled value for our customers,” he told analysts on Tuesday’s earnings call.
Axon said its AI capabilities accounted for about 10%, or $750 million, of its total bookings last year as it introduced more technology into its tools.
These AI features include automatic license plate recognition and voice-activated companions built into body cameras. The tool, known as Axon Assistant, has attracted more than 500 customers.
Finance chief Brittany Bagley said Axon expects its software business, which grew 40% in the quarter to $343 million, to soon outpace hardware growth due to AI tailwinds.
Revenue increased 39% year over year. Net income was approximately $3 million, or 3 cents per share, down from $135 million, or $1.67 per share, in the year-ago period. Axon attributed the decline to operating losses and changes in strategic investment activity.
The company also set 2028 targets for annual sales of $6 billion and adjusted EBITDA margin of 28%.
