Compared to Estimates, Axon (AXON) Q4 Earnings: A Look at Key Metrics

Core Insights - Axon Enterprise reported a revenue of $796.72 million for the quarter ended December 2025, marking a 38.5% increase year-over-year and exceeding the Zacks Consensus Estimate of $753.65 million by 5.72% [1] - The company's EPS for the quarter was $2.15, up from $2.08 in the same quarter last year, and it surpassed the consensus EPS estimate of $1.67 by 29.04% [1] Financial Performance Metrics - Annual recurring revenue was reported at $1,347.00 million, slightly below the estimated $1,368.50 million [4] - Net sales for Products reached $454.21 million, exceeding the average estimate of $417.23 million and reflecting a 37.6% increase compared to the previous year [4] - Net sales for Software and Services were $342.52 million, slightly above the average estimate of $336.32 million [4] - Net sales for Connected Devices totaled $454.21 million, surpassing the six-analyst average estimate of $417.23 million [4] - Net sales for Services were $342.52 million, compared to the estimated $336.32 million, indicating a 39.8% year-over-year increase [4] - Net sales for Connected Devices-Platform Solutions were $80.87 million, exceeding the average estimate of $68.03 million [4] - Net sales for Connected Devices-TASER reached $264.2 million, above the average estimate of $242.34 million [4] - Net sales for Connected Devices-Personal Sensors were $109.13 million, slightly above the average estimate of $106.97 million [4] - Adjusted gross margin for Software and Services was $262.57 million, exceeding the estimate of $258.1 million [4] - Adjusted gross margin for Connected Devices was $223.9 million, above the average estimate of $214.23 million [4] Stock Performance - Axon shares have returned -30% over the past month, contrasting with the Zacks S&P 500 composite's -1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]