Shares of Exxon rose 20% after strong earnings as demand for AI accelerated.
Shares of Axon Enterprises ( AXON ) surged more than 20% following its fourth-quarter results, which showed growing demand for the company's AI-enhanced software tools and a growing customer base.
The Scottsdale-based company posted record results as software and services revenue rose 40% to $343 million, reflecting momentum in its high-margin SaaS business.
Full-year revenue rose 33% to $2.8 billion, the fourth consecutive year of growth above 30%, driven by strong bookings of $7.4 billion and futures contracts of $14.4 billion.
Fourth quarter net income totaled $3 million, non-GAAP net income was $178 million, and adjusted EBITDA was $206 million. The company maintained the 40 over 55 rule and delivered a full-year adjusted EBITDA margin of 25.5% despite ongoing strategic investments in AI, new product categories and acquisitions.
Axon estimates revenue growth between 27 and 30% for 2026. Additionally, the company has ambitious 2028 revenue and adjusted EBITDA targets of 6 billion and 28%, reflecting the company's confidence in its rapidly expanding AI ecosystem and recurring revenue model.
In the year Rick Smith, who founded the company in 1993 and served as CEO, described the current environment as unprecedented in the company's history.
“If we deploy AI more aggressively and thoughtfully than anyone else in this space, we will create value that our customers cannot easily replicate while respecting the responsibility that comes with the environment in which we operate,” Smith said on the earnings call.
