Axon Enterprise beats fourth-quarter profit estimates, shares rise

Core Insights - Axon Enterprise exceeded fourth-quarter profit estimates, driven by strong demand for security devices and software products, resulting in a 15% increase in shares during extended trading [1][4]. Financial Performance - Quarterly revenue reached $796.7 million, surpassing estimates of $755.2 million [5]. - The connected devices segment experienced a 38% revenue increase to approximately $454.2 million from $330.2 million year-over-year [3]. - The software and services segment saw a 40% revenue growth to $342.5 million, attributed to new users and increased adoption of premium offerings [4]. Profitability Metrics - On an adjusted basis, the company reported earnings of $2.15 per share, exceeding analysts' average estimate of $1.60 per share [4]. - The adjusted gross margin for the connected devices segment decreased to 49.3% from 52.2%, impacted by global tariffs and product mix [3]. Future Outlook - Axon anticipates revenue growth of approximately 27% to 30% in 2026 compared to the previous year [4].