Axon stock surges after revealing AI products and strong revenue growth
Axon Enterprise Inc.’s stock price skyrocketed Wednesday after the company revealed strong revenue growth and a flurry of AI powered products.
The Scottsdale-based company behind Tasers, body-worn cameras and other technologies for law enforcement and the military saw its shares spike 25% Wednesday, following the release of its fourth quarter earnings on Feb. 24 after the markets closed, gaining more than $100 to $550.81.
Overall, the company saw Q4 revenue of $797 million and reported a diluted earnings of $2.15 per share, according to its fourth quarter report. The revenue exceeded Wall Street expectations, coming in 5.72% ahead of the Zacks Consensus Estimate of $753.65 million.
Axon (Nasdaq: AXON) experienced an operating cost loss of about $50 million as a result of an “increased headcount to support business growth and stock-based compensation expense,” according to an announcement from the company.
The company spent $185 million in stock-based compensation in the last quarter, and $610 million in the entire year. Axon’s executive leadership was one of the highest-paid among Arizona-based public companies in 2025.
Tariffs were mentioned a few times during the call; Axon leadership cited them among the reasons adjusted gross margin slipped in at 61.1% during the quarter. However, the lost revenue from tariffs was offset by “strong growth in high margin software and services.”
“Obviously, there was big news on tariffs last week. Right now for us, very little has changed going forward given the implementation of the new 15% global tariff,” Axon’s Chief Operating Officer and Chief Financial Officer Brittany Bagley said during the Feb. 24 call.
The company also is aiming to achieve annual revenue of $6 billion in 2028 — more than double its $2.8 billion revenue in 2025.
Axon touts body-worn AI-driven translator for law enforcement
Axon Assistant was one of the artificial intelligence products touted during the call. The voice activated AI is embedded within a police officer’s body-worn camera and allows for the translation of more than 50 languages as well as answers to policy questions.
“We are positioned to be a winner in this AI driven environment and we intend to lap the field,” President Josh Isner said.
As for the year ahead, Axon anticipates capital expenditures from $185 million to $215 million. These plans include long-term R&D investment projects, continued capacity expansion, global facility build-outs and new product development costs.
These costs will not include the build-out of its proposed Scottsdale headquarters campus.
Axon did not speak at length about its massive Scottsdale headquarters project, despite striking a zoning deal with the Scottsdale City Council in November after lowering the amount of housing units on the development. The $1.3 billion project will have 1,200 housing units, hotels and restaurants on the 72-acre site at Loop 101 and Hayden Road. Construction has been anticipated to begin in March of this year.