Axon shares rise as Taser-maker's profit gets boost from government spending

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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