By Anshuman Tripathy
Feb 25 (Reuters) – Axon Enterprise shares jumped more than 19% in morning trading on Wednesday after the Taser-maker reported fourth-quarter profit above Wall Street expectations, on strong demand for its security devices and software products.
Increased federal investment on immigration enforcement along with corporate spending on executive security have aided demand for Axon, which makes body-worn cameras and digital evidence management systems used by companies and governments.
Axon’s 2025 bookings came at $7.4 billion, up 46% from a year ago, with fourth-quarter bookings rising about 50%, the company said on Tuesday.
“There is a major opportunity across federal law enforcement for a number of our core products, as well as counter UAS (unmanned aircraft system) technology,” Axon president Joshua Isner said on a call with analysts.
Needham analyst Joshua Reilly said the company’s momentum is strong across key customer segments including state and international, and highlighted that its enterprise segment is contributing to bookings.
Axon expects 2026 revenue to grow between 27% and 30%.
The company also makes a voice-activated AI companion for its body cameras and manufactures license plate recognition systems.
“Axon’s ability to drive AI-based value from sensors, unique data and workflows is getting ever more evident. Demand for public safety continues to grow as well,” said Northland Capital Markets analyst Michael Latimore.
The company posted quarterly adjusted profit of $2.15 per share, above analysts’ average estimate of $1.60, according to data compiled by LSEG.
“This was a critical quarter and AXON knocked it out of the park,” said TD Cowen analyst Andrew Sherman.
Axon’s shares trade at about 57.43 times their forward profit estimates, above the industry median of 26.18.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Leroy Leo)
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