Axon Enterprise (AXON) shares surged more than 20% following its fourth-quarter results, which highlighted rising demand for the company’s AI-enhanced software tools and growing adoption across its customer base.
The company posted record results with Software & Services revenue increasing 40% to $343 million, showcasing continued momentum in its high-margin SaaS business. Full-year revenue rose 33% to $2.8 billion, supported by strong bookings of $7.4 billion and future contracted bookings of $14.4 billion.
Net income for the fourth quarter totaled $3 million, while non-GAAP net income reached $178 million. Axon has projected revenue growth between 27% and 30% for 2026 and ambitious 2028 targets of $6 billion in revenue and 28% adjusted EBITDA.
CEO Rick Smith described the current environment as unprecedented, stating that aggressive and thoughtful AI deployment will create unparalleled customer value.