Axon Enterprise, Inc. shares rise over 20%, currently trading at $531.89

Axon Enterprise, Inc. shares rise over 20%, currently trading at $531.89

Axon Enterprise Shares Surge Over 20% on Strong Q4 Results
Axon Enterprise, Inc. (AXON) shares rose more than 20%, trading at $531.89 in extended hours on February 24, 2026, following the release of better-than-expected fourth-quarter financial results. The surge followed robust revenue growth driven by increased demand for its law enforcement technologies and software solutions.

The Arizona-based company reported Q4 revenue of $796.7 million, exceeding analyst estimates of $755.2 million. Its largest segment, Connected Devices, saw a 38% year-over-year revenue increase to $454.2 million, fueled by sales of TASER 10 devices, body-worn cameras, and counter-drone systems. The Software and Services segment also performed strongly, with revenue rising 40% to $342.5 million, reflecting broader adoption of premium software by existing customers and new user acquisitions.

Adjusted earnings per share (EPS) for the quarter came in at $2.15, surpassing the $1.60 average estimate. However, the Connected Devices segment's adjusted gross margin declined to 49.3% from 52.2% year-over-year, attributed to global tariffs and shifts in product mix.

Axon projected 2026 revenue growth of 27% to 30% compared to 2025, citing sustained demand for its products. Analysts noted that rising corporate spending on executive security and federal investments in immigration enforcement have bolstered the company's performance.

The stock's post-earnings rally outpaced the flat industrial sector, with investors reacting positively to the company's ability to exceed expectations amid macroeconomic challenges. Axon's shares currently trade at a 6.84% gain year-to-date, though lag behind the S&P 500's 16.41% return over the same period.

Investors remain focused on Axon's long-term growth prospects, including its expansion into virtual reality training and fleet management systems. The company's forward price-to-earnings ratio stands at 84.75, reflecting optimism about future earnings potential.