Axon Enterprise, Inc. (NASDAQ:AXON) shares are trading higher Wednesday after the company reported better-than-expected fourth-quarter financial results and issued fiscal-year 2026 sales guidance above estimates.
Premium Software Demand Drives Revenue Growth, Guidance Tops Estimates
Axon reported adjusted earnings per share of $2.15, beating the consensus estimate of $1.60. In addition, the company reported revenue of $796.72 million, beating the consensus estimate of $755.40 million.
Total revenue increased 39% year over year, driven by demand for premium software offerings, TASER 10, Axon Body 4 and counter-drone equipment. Software and services revenue rose 40% to $343 million.
Annual recurring revenue climbed 35% to $1.3 billion, reflecting continued adoption of premium solutions and growth in cloud users.
Adjusted EBITDA rose 46% to $206 million, representing a 25.9% margin.
Axon ended the quarter with $1.7 billion in cash, cash equivalents and short-term investments.
Looking ahead, the company sees fiscal-year 2026 revenue of $3.53 billion to $3.61 billion, versus the consensus estimate of $3.44 billion.
Axon Shares Climb Higher
AXON Price Action: At the time of writing, Axon shares are trading 19.22% higher at $526.95, according to data from Benzinga Pro.
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