Taser maker Axon pops nearly 18% as AI boosts demand for its software tools

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Summary

Axon Enterprises beat fourth-quarter estimates and its stock jumped nearly 18% after investors reacted to stronger-than-expected earnings and revenue. Management said AI accelerated demand for its software tools, with AI-enabled capabilities making up roughly 10% of bookings and features like license plate recognition and a voice-activated body camera assistant gaining traction. Axon's software revenue grew 40% in the quarter to $343 million and the company expects software-led growth to soon outpace hardware. The company issued upbeat 2026 revenue guidance and set 2028 targets of $6 billion in annual revenue and a 28% adjusted EBITDA margin.

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SaaS Public Safety Software Video Management Software

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Axon
$1M to $5M