Axon Enterprise Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.52%.
Did AXON Beat Earnings? Q4 2025 Results
Axon Enterprise capped a remarkable fiscal year with a blowout Q4 2025, posting non-GAAP earnings of $2.15 per diluted share against a consensus estimate of $1.60, a beat of 34.37%, while revenue climbed 38.5% year over year to $796.72 million, topping the $754.51 million Wall Street had expected by 5.59%. <a href="https://247wallst.com/investing/2026/02/24/axon-enterprise-earnings-preview-what-wall-street-is-watching/">Heading into the print</a>, investors were watching closely for signs that premium software adoption and hardware momentum could sustain the company's growth trajectory, and the results delivered on both fronts, with annual recurring revenue exceeding $1.35 billion and net revenue retention accelerating to 125%. The quarter's strength was anchored by robust demand for TASER 10, Axon Body 4, and counter-drone equipment, alongside software margins that continued to exceed 80%. Despite a sharp drop in GAAP net income due to elevated stock-based compensation and non-recurring charges, Adjusted EBITDA reached $206.34 million at a 25.9% margin. Looking ahead, Axon guided for 27% to 30% revenue growth in 2026 and set an ambitious 2028 target of approximately $6.00 billion in annual revenue, signaling confidence in its expanding public safety ecosystem.
- Premium software adoption driving Software & Services growth of 40% YoY
- Strong demand for TASER 10, Axon Body 4, counter-drone solutions, virtual reality training and fleet systems
- Net revenue retention of 125% reflecting additional value delivery to existing customers
- Annual recurring revenue growth of 35% to $1.3 billion
- Future contracted bookings of $14.4 billion, up 43% YoY
- Annual bookings of $7.4 billion, up 46% YoY
“Here's my conviction: nobody should be more aggressive or more thoughtful on AI than Axon. If we get that balance right, we won't just be a vendor, we'll be the partner our customers can't imagine operating without. That's when the real flywheel kicks in: deeper relationships, expanded footprints, and increasingly mission-critical problems landing on our doorstep.”
Axon Enterprise CEO, on the earnings call
Forward Guidance & Outlook
For full year 2026, Axon expects revenue growth of 27% to 30% year over year with an Adjusted EBITDA margin of 25.5%. Stock-based compensation expense is projected at $590 million to $620 million, and capital expenditures are expected in the range of $185 million to $215 million. Looking ahead to 2028, Axon has established targets of approximately $6 billion in annual revenue, 28% Adjusted EBITDA margin, Adjusted Free Cash Flow conversion of 60% of Adjusted EBITDA, and annual dilution from stock-based compensation below 2.5%.
AXON YoY Financials
AXON Revenue by Segment
AXON Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.