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Axon Soars After Big Q4 Beat and 2026 Growth Outlook

Surging bookings reassured investors despite tariff pressure on device margins.

Overview

  • Adjusted fourth-quarter earnings were $2.15 per share on $796.7 million in revenue, topping LSEG-polled estimates of $1.60 and $755.2 million.
  • Shares jumped about 16% in premarket trading following the results.
  • Total 2025 bookings reached $7.4 billion, up 46% year over year, with fourth-quarter bookings rising about 50%.
  • Connected devices revenue rose 38% to roughly $454.2 million as the segment’s adjusted gross margin slipped to 49.3% from 52.2% on tariffs and product mix, while software and services grew 40% to $342.5 million.
  • The company guided 2026 revenue growth of 27% to 30% and said AI features contributed roughly $750 million to last year’s bookings, with demand supported by federal immigration enforcement and executive-security spending.