Why Axon Enterprise (AXON) Is Surging Today

Insider Monkey
02-27

Axon Enterprise (AXON) is jumping 17% after the company reported higher-than-expected fourth-quarter earnings per share and provided 2025 revenue guidance that also came in above analysts' average estimate.

The company also noted that its bookings with government agencies and companies had tripled in Q4 versus the same period a year earlier, while its overseas bookings had climbed almost 50% in Q4 versus Q3.

Axon sells Taser weapons and software for law-enforcement agencies.

A technician in a white coat testing an in-car system on a modern military vehicle.

The Highlights of Axon's Q4 Results and Guidance

Axon's revenue jumped 33% in Q4 versus the same quarter a year earlier to $575 million. The latter figure was roughly in line with analysts' average estimate. The firm's EPS, excluding certain items, came in at $2.08, well above the mean estimate of $1.40.

Moreover, Axon provided 2025 sales guidance of $2.55 billion to $2.65 billion. The midpoint of the latter range, which is $2.6 billion, was above analysts' average estimate of $2.56 billion.

The company's overseas bookings climbed nearly 50% in Q4 versus Q3, after increasing 40% in Q3 compared with Q2. And noting that it had "booked the largest deal in company history with a global logistics provider" in Q4, Axon reported that its bookings with companies and government agencies had "roughly tripled year-over-year" during the quarter.

The Recent Performance of AXON Stock

In the last month, Axon is down 9.4%, while it has retreated 8.6% in the last three months.

While we acknowledge the potential of AXON, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AXON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

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