New York, Feb 25, 2026, 05:19 ET — Premarket
- Axon Enterprise surged roughly 16% ahead of the bell, with its latest quarterly numbers beating expectations.
- The TASER maker expects revenue to climb 27% to 30% in 2026 and rolled out fresh goals for 2028.
- Investors are eyeing margin pressure tied to tariffs and the hardware mix, along with the company’s sizable tab for stock-based compensation.
Axon Enterprise (AXON) jumped roughly 16% in early premarket action Wednesday, last seen at $514.93. The stock wrapped up Tuesday at $442.51, gaining 4.5%, but that’s still a long way off its 52-week peak, which sits close to $886. (Public)
The company posted a quarterly profit after the close, beating expectations. Adjusted earnings came in at $2.15 per share, with revenue at $796.7 million—both ahead of LSEG’s calls for $1.60 and $755.2 million, respectively. Connected devices pulled in $454.2 million, up 38%. Software and services climbed 40% to $342.5 million. Device margins slipped, hit by tariffs and a shift in product mix, according to Reuters. (Reuters)
Axon laid out a 2026 forecast, calling for revenue growth between 27% and 30%, alongside an adjusted EBITDA margin of 25.5%. That margin figure strips out interest, taxes, depreciation, amortization, and other select costs. Longer term, Axon’s 2028 goals include roughly $6 billion in annual revenue and a 28% adjusted EBITDA margin. For 2026, the company expects stock-based compensation expenses between $590 million and $620 million, and capital spending in the $185 million to $215 million range. In 2025, Axon reported $2.8 billion of revenue with bookings at $7.4 billion and “future contracted bookings”—the undiscounted value of signed contracts not yet delivered—at $14.4 billion. Net revenue retention hit 125%. (Axon IR)
Hardware paired with subscription software keeps traders focused on order flow and renewal trends. With Axon’s large contracts bundling devices, cloud software, and services, the structure of bookings can be just as important as the latest quarterly results.
Much of the optimism banks on the company’s long-term projections. Expensive growth names have taken a beating lately, so traders want sharper clarity on revenue and margins — along with evidence that the growth pitch holds up if budgets get squeezed.
Axon founder and CEO Rick Smith made it clear: “nobody should be more aggressive or more thoughtful on AI than Axon,” as he detailed the company’s expanding use of artificial intelligence. The company says its Axon Assistant is already live, serving around 500 customers, and is capable of translating in real time across over 50 languages. Axon also spotlighted upcoming projects, including the Axon 911 platform and a compact Body Mini camera slated for release in mid-2026. In a testimonial highlighted by Axon, Sheriff John Allen from Bernalillo County, New Mexico, described the technology as a “force multiplier.” (PR Newswire)
Wednesday’s focus lands on a narrow question: can the bid hold up when the market opens? Premarket strength often disappears quickly as regular-session volume comes in—particularly for stocks sensitive to guidance and margin expectations.
Still, the friction remains. Tariffs and a shift toward more hardware weigh on margins, despite robust demand. Factor in stock-based compensation and ongoing investment—suddenly, if orders slow, there’s little cushion left.
Axon shares surged, following a robust session for risk assets. The S&P 500 notched a 0.77% gain, while Motorola Solutions—another name in public safety—added 1.25%, according to MarketWatch data. Axon’s trading volume on Tuesday topped its 50-day average as well. (Marketwatch)
Next up: the opening bell hits at 9:30 a.m. ET, and investors get to see if this earnings surge sticks once volume picks up. After that, focus shifts to Axon Week in Nashville from April 7–10, where the company has more product updates lined up. (Axon)
