Axon Enterprise Stock Rockets: Here’s the Fuel Behind the Surge

Another day, another meme-stock moonshot—except this time it's Taser-toting Axon Enterprise (NASDAQ: AXON) lighting up the ticker. Here's why traders are suddenly buzzing like a stun-gun victim.

Earnings Shock Therapy

Q2 numbers zapped expectations—revenue surged 34% YoY as police departments doubled down on 'non-lethal' hardware. Because nothing says 'public safety' like a 50,000-volt hug.

Short-Seller Roast

Bearish bets got tasered into oblivion after management upgraded guidance. Cue the gamma squeeze—because in 2025, fundamentals are just algo-fodder.

The Crypto Angle?

Zero. But some degenerate on Reddit probably pitched 'AXON as a Web3 play' between sips of Monster Energy.

Another reminder that in this market, even stun-gun makers can ride the dopamine drip—until the next earnings call pulls the trigger.

Image source: Axon.

Axon zooms past expectations

Revenue in the quarter jumped 33% to $668.6 million, well ahead of expectations at $641 million.

Growth was balanced across its two business segments: Software and services revenue was up 38.8% to $292.2 million, while connected devices, which includes its TASER electrical weapons and Axon body and dashboard cameras, was up 28.6% to $376.4 million. Annual recurring revenue also ROSE 39% to $1.2 billion, a sign of strength in the software business.

Axon is also gaining traction with its new generative artificial intelligence (AI) features, including Draft One, a tool that creates first drafts of police reports automatically based on camera footage, and these features are saving its customers many hours of desk work each week.

Bottom-line results were solid as well: Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 37% to $172 million, and adjusted earnings per share jumped from $1.22 to $2.12, though that included a boost from a $75 million tax benefit. That's up from the consensus at $1.46 a share.

What's next for Axon

The TASER Maker also raised its guidance for the year, calling for revenue of $2.65 billion to $2.73 billion, up from a previous forecast of $2.6 billion to $2.7 billion. It also raised its adjusted EBITDA target from $650 million-$675 million to $665 million-$685 million.

Axon has established itself as the dominant provider of technology for law enforcement, and it continues to push its competitive advantage with investments in new technologies like AI.

While the stock is expensive, the future looks bright for Axon.