Axon Q4 Revenue Climbs 38.5% to $796.7M, EPS of $2.15 Tops Estimates
Axon posted Q4 revenue of $796.72M, up 38.5% year-on-year, beating consensus by 5.72% and delivering EPS of $2.15, a 29.04% surprise versus estimates. Annual recurring revenue reached $1,347.0M versus $1,368.5M expected, while product sales rose 37.6% to $454.21M and services sales grew 39.8% to $342.52M.
1. Financial Results
For the quarter ended December 2025, Axon posted revenue of $796.72 million, a 38.5% increase year-on-year, topping the $753.65 million consensus by 5.72%. Reported EPS of $2.15 rose from $2.08 in the prior year and exceeded the $1.67 estimate by 29.04%.
2. Detailed Key Metrics
Annual recurring revenue reached $1,347.0 million against a $1,368.5 million forecast. Net product sales climbed 37.6% to $454.21 million, software and services sales grew 39.8% to $342.52 million, and connected-device subsegments—platform solutions ($80.87M), TASER ($264.20M) and personal sensors ($109.13M)—all outpaced analyst expectations.
3. Share Performance and Outlook
Despite the earnings beat, shares have fallen roughly 30% over the past month versus a 1% drop in the S&P 500. The stock holds a hold rating as investors look to management’s commentary and next-quarter consensus of $1.60 EPS on $756.35 million in revenue for further guidance.