Axon Enterprise beats fourth-quarter profit estimates, shares rise

Feb 24 (Reuters) - Taser-maker ‌Axon Enterprise ​beat ​Wall Street estimates for fourth-quarter profit on Tuesday, driven by strong demand for its security ‌devices and software products.

Shares of the Arizona-based ⁠company were up 15% in extended trading.

Best known for its law ‌enforcement technologies such as ‌TASER energy weapons, body-worn cameras and digital evidence management systems, Axon has benefited from rising corporate ​spending on executive security and increased federal investment in immigration enforcement.

Connected devices, Axon's biggest segment, saw ⁠a 38% jump in fourth-quarter revenue to about $454.2 million from $330.2 million a ​year earlier, signaling strong demand for its offerings including the TASER 10, Axon Body 4, ​counter-drone solutions, virtual reality training ‌and fleet systems.

However, the segment's adjusted gross margin decreased to 49.3% from 52.2%, hurt ⁠by global tariffs and product mix.

The software and services segment also recorded strong growth with quarterly revenue rising ⁠40% from a year earlier to $342.5 million, driven by new users ​and increased adoption of premium software offerings by existing customers.

Axon expects 2026 revenue to grow about 27% to 30% from ‌a year earlier.

On an adjusted basis, the company earned $2.15 per share for the fourth ‌quarter, beating analysts' average estimates of $1.60 per share, ⁠according to data compiled ‌by LSEG.

Quarterly revenue ​came in at $796.7 million, higher than estimates of $755.2 million.

(Reporting by Parth Chandna; Editing by Jonathan ‌Ananda)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Microsoft to reveal Azure cloud sales in financial reporting shift 
• HPE raises annual forecasts as AI, networking demand lifts quarterly revenue
• DIW raises German economic growth forecasts as exports beat expectations