AXON Analysis: Axon Enterprise Beats Q4 Estimates With 39% Revenue Growth as Public Safety Tech Pioneer Targets $6 Billion by 2028
Axon Enterprise (NASDAQ: AXON) just delivered another blowout quarter. The Scottsdale-based public safety technology company reported Q4 2025 revenue of $796.7 million, up 39% year over year, beating Wall Street estimates and capping a fiscal year that saw the company cross $2.78 billion in annual revenue. Software & Services revenue grew 40% to $343 million, underscoring the company's successful transformation from a hardware maker into an enterprise software platform. The stock has been on a wild ride. After reaching a 52-week high of $885.92, shares pulled back sharply — falling nearly 50% to a low of $396.41 — before bouncing 4.5% on the earnings beat to close at $442.51. At a $34.9 billion market cap, Axon trades at a PE ratio of 139x trailing earnings, reflecting investor expectations of sustained high growth. The company rewarded that confidence by introducing a 2028 revenue target of $6 billion with 28% Adjusted EBITDA margins. For investors, Axon presents a fascinating case study: a company with a genuine monopoly in law enforcement technology, expanding aggressively into AI-powered software, but trading at a valuation that demands flawless execution. Here's what the numbers say about whether the stock deserves its premium.