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Axon Enterprise

AXON Q4 2025 Earnings

Reported Feb 24, 2026 at 4:16 PM ET · SEC Source

Q4 25 EPS

$2.15

BEAT +34.38%

Est. $1.60

Q4 25 Revenue

$796.7M

BEAT +5.59%

Est. $754.5M

vs S&P Since Q4 25

-25.7%

TRAILING MARKET

AXON -21.8% vs S&P +4.0%

Full Year 2025 Results

FY 25 EPS

$6.85

BEAT +8.47%

Est. $6.32

FY 25 Revenue

$2.78B

BEAT +1.54%

Est. $2.74B

Market Reaction

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, toppi… Read more 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%. Heading into the print, 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.

Key Takeaways

  • • 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

AXON 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%.

24/7 Wall St

AXON YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

24/7 Wall St

AXON Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 22 Q4 25
24/7 Wall St

AXON Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“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.”

— Rick Smith, Q4 2025 Earnings Press Release

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